One extra billion a year is not going to build many km of new rail,

Using the $10m/km estimate, a billion would buy about a hundred kilometres. Nothing to sneeze at, but, yes, we need more.

bellistner,
I was thinking of this project just completed 2009; the first 17km, for 2.31Billion

"The Epping to Chatswood rail link took its first load of passengers on 23 Feberuary. After a string of delays, NSW Premier, Nathan Rees, opened the 17-kilometre link at the new Macquarie University station, declaring the new line to be a "shot in the arm for public transport in Sydney".
The $2.3 billion project includes new stations at North Ryde and Macquarie Park, as well as Macquarie University, and cavernous new underground platforms at Epping and Chatswood stations.
Mr Rees announced today that passengers would travel free on the link for the first 100 days.
However the link will not be integrated into the rest of the CityRail network until the second half of the year, meaning it is effectively a shuttle service for residents from a cluster of Sydney's northern suburbs and there is unlikely to be any reduced congestion on the crowded CityRail network until then. Transport Minister David Campbell said it was standard practice for a new train line to be integrated into a network over time. "

this is why we will never solve transportation only by using mass transit; x10 too expensive