Minister 'unaware' of rail profit deal

Transport Minister Dean Nalder claims his department and Cabinet colleagues did not tell him about a secret profit-sharing deal between the State Government and Brookfield Rail linked to the closure of 500km of freight lines in the Wheatbelt.

Mr Nalder admitted yesterday that he only became aware of the deal between the Government-run Public Transport Authority and Brookfield when _WestBusiness _raised the issue this week.

The stunning admission raises more questions about the secrecy surrounding a deal which creates the potential for the Government to make millions of dollars on rail access fees paid by farmers.

"The specific clauses in the agreement were only brought to my attention yesterday," Mr Nalder said. "I am now seeking clarification from the PTA to better understand the mechanics of the agreement to ensure it's in the best interests of the State."

Brookfield's operation of the State-owned lines under a lease managed by the PTA has been a big issue for Mr Nalder since he took over the portfolio in March.

The closure of lines known as Tier 3 on June 30 coincided with the profit-sharing deal between Brookfield and the PTA coming into play. Under the deal, the PTA is entitled to 15 per cent of profits Brookfield makes on selected Tier 1 and Tier 2 lines.

Mr Nalder was also in the dark about a clause which ties access fee increases on the lines to the annual CPI rate until 2016 despite appearing to take a keen interest in the future of grain on rail.

CBH, which has been paying up to $50 million a year, to use the lines to cart grain, claims Brookfield is trying to increase access fees by 30 per cent.

Brookfield and the PTA tried to stop a parliamentary committee tabling documents revealing the profit-sharing and CPI price cap clauses to CBH and the public.

The PTA referred questions about why Mr Nalder was not made aware of the clauses to the minister's office. PTA chief executive Reece Waldock, who signed off on the clauses in 2010, is on leave and could not be contacted.

Labor transport spokesman Ken Travers said Mr Nalder's claims were outrageous.

"I almost can't believe he didn't ask for and read the lease agreements and contracts on such a major issue," Mr Travers said.

CBH said there was obvious potential for a conflict of interest with the PTA managing the lease of the freight network while in a profit-share deal with Brookfield.