It is with great pleasure that I speak on the Transport Administration Amendment Bill 2024. As the daughter of a train driver and a former employee of the Rail, Tram and Bus Union, I am very proud to speak about public transport every day of the week. The Transport Asset Holding Entity [TAHE] has a long history. The Public Accountability Committee held an inquiry into the matter back in 2023. A number of former Government and current Opposition parliamentarians were members of that Committee. At the time, the Committee Chair was Mr David Shoebridge, a former member of the other place. The Chair's foreword in the Committee report states:

The Transport Asset Holding Entity (TAHE) is a financial and organisational mistake that needs to be undone. TAHE was established by the Coalition government with the promise that it would provide a commercial return on rail assets, strengthen the rail safety framework and deliver a positive real impact on the state budget. Almost two years into TAHE's operations and it has achieved none of these goals. It is now abundantly apparent that it is not fit for purpose. The continuation of the TAHE experiment places an unnecessary, and unacceptable, financial and safety risk for NSW.

The foreword goes on:

In its enthusiasm to produce this accounting turnaround the Coalition failed to give due consideration to the accounting standards that needed to be met to make TAHE commercially viable or the safety requirements that are vital in a public rail system. It was alarming to learn that, even when alerted to these issues, the government refused to change its position on the establishment of TAHE.

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This inquiry was not the first time concerns about TAHE have been raised. Senior public servants, the Auditor-General of New South Wales and external consultants have been raising concerns about TAHE since it was first conceived.

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For this reason, it is essential for the NSW Government to unwind TAHE as soon as practical to prevent the ongoing bleeding of public finances to sustain it.

That report was published in April 2022. The Public Accountability Committee made six findings, including:

Finding 1

That the NSW Government established the Transport Asset Holding Entity with the primary aim of improving the state's fiscal position in the budget papers, rather than for other purported efficiency and safety benefits.

Finding 2

That the NSW Government implemented its policy decision of creating the Transport Asset Holding Entity without due consideration of the real financial impact on the budget and the applicable accounting standards and rules that would apply to the entity.

Finding 3

That it is inappropriate for the Transport Asset Holding Entity to have property development as its primary business focus, given it holds some of the state's most critical transport infrastructure and should be focused on the rail system.

Finding 4

That the NSW Government failed to give proper consideration to safety, accountability and risk mitigation matters before implementing its policy decision of creating the Transport Asset Holding Entity.

The Committee made four recommendations. The first was:

Recommendation 1

That the NSW Government unwind the Transport Asset Holding Entity, due to the further negative financial impacts it will cause to the General Government Sector budget and its inability to credibly make a commercial return.

It has taken the Minns Labor Government to once again clean up the mess of the former mob. New South Wales residents expect the Government to administer in their interests and have good governance. This bill will amend the Transport Administration Act 1988 to convert the Transport Asset Holding Entity from a State-owned corporation to a statutory corporation called the Transport Asset Manager of New South Wales [TAM]. It will incorporate active transport and the improvement of the activation of public spaces as functions and objectives of Transport for NSW. The bill also makes changes to the functions and objectives of Transport for NSW to ensure that it is able to take the lead on promoting active transport and improving the activation of public spaces.

Currently, Transport for NSW's functions do not explicitly include active transport. This bill puts it beyond doubt that Transport for NSW will lead on active transport and promote a mode shift to active transport. Through transport initiatives, programs and services, the New South Wales Government can improve the walkability, safety and accessibility of our neighbourhoods through TAM, including for first- and last-mile connectivity. This supports behaviour change, mode shift and public transport patronage. These active transport and public space activation initiatives, programs and services have the added benefits of reducing congestion around urban centres, reducing emissions, supporting community health and improving the vibrancy and amenity of our neighbourhoods.

Great precincts and districts can improve mental and physical wellbeing; foster public life and equity; support local jobs; showcase local content, businesses and supply chains; and allow us to connect with other people and our environment. This bill will enable us to create walkable, safe, sustainable and welcoming places that are beautiful and inviting for everyone to access and enjoy, which is a priority of this Government. Transport for NSW also continues to support, fund and work with our local councils to ensure that they deliver and expand local walking and bike riding networks under the Get NSW Active program.

The bill will remove TAHE's status as a State-owned corporation and establish TAM. The previous Government used TAHE questionably to say the least. We know that the former Government—and current Opposition—has no love for anything public, including public health, public education and public transport. The Public Accountability Committee questioned whether TAHE was even legally enforceable as an entity and considered its serious negative impact on the State's budget. Apart from the financial benefits to the taxpayer and the transparency of transport assets, this Government will ensure that the State's assets are properly maintained and—as it is Rail Safety Week—all of its public transport workers and passengers are kept safe.

This Government is undertaking the rail recovery work, maintenance and construction not done by the former Government, with $97 million invested. So much has to be done urgently. Overhead wires have fallen down, tracks need to be repaired and high-priority defects need to be addressed, just to name a few issues. Effective asset management is delivered by a government with transparency and accountability. The Minns Labor Government supports a safe, resilient and reliable rail network for passengers and the movement of goods across the State, as well as active transport for all. I thank all public transport employees, particularly the frontline workers, infrastructure teams and maintenance crews. I thank the Minister and all her staff for their vital work in introducing this bill.