Transport Minister Jo Haylen has ruled out ripping up the previous government's contract to privatise the Newcastle bus network, despite acknowledging it had resulted in an inferior service for many Hunter commuters.
Ms Haylen said a bus industry taskforce, announced during the election campaign, would seek to find solutions to problems resulting from privatisation.
"We know that there were services that previously took people about 40 minutes to get into Newcastle. Now it takes them an hour and a half and they have to change multiple times. The system is failing the people who need it," the minister, who visited Newcastle on Thursday, said.
"It's a complex system, we need to work together to make it work again. We're not in the business of ripping up contracts, but we are in the business of making sure that we have a transport system that people can rely on again."
While acknowledging the community's desire to extend the Newcastle Light Rail network, Ms Haylen said she needed more information about the project before committing to it.
"I haven't had a chance to be briefed about those plans yet but I look forward to it," she said.
"We need to have a system that works not just in terms of light rail but buses and active transport as well. I'm really pleased that councils, particularly here in the Hunter, have bold visions about the future of public transport."
Ms Haylen didn't disclose details of the government's plans to replace the existing Tangara fleet, but she said she expected the Hunter would play a critical role.
"The last time trains were built at Cardiff it created 500 direct jobs and many more in the supply chains," she said.
"The Hunter is a manufacturing superpower and I know that when we construct the replacement Tangara fleet the Hunter will be critical to that project. We want to create a long term supply opportunity when it comes to domestic manufacturing."
The minister's visit to Newcastle on Thursday, her first stop outside of Sydney since being sworn in, included a tour of the Broadmeadow rail maintenance facility and heritage rail collection.
The area is the subject of a development application by Transport Asset Holding Entity to split the former locomotive depot as part of a precinct revitalisation project.
The agency says the site has the potential to significantly benefit the local community by providing much needed diverse and affordable housing as well as delivering new public spaces which celebrate rail heritage.
Ms Haylen said she had not been briefed on the proposal.
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