How serious is the Premier and the Member for Newcastle about "no cuts to transport"?

I've been alerted to an interview on John Laws' (2SM) show on Monday in which the Premier, Kristina Keneally, makes a statement that - if she is serious about it - effectively rules out Labor support for cutting the Newcastle rail line.

At one point in the interview, Ms Keneally states:

I want to be clear with people: there will be no cuts to important services, like transport, like health, like education. We have safeguarded those important services that families rely on.

The proposal to cut the Newcastle rail line would clearly cut a transport service. Is the Premier now ruling that proposal out?

It would be interesting to hear what Ms Keneally and the Member for Newcastle, Jodi McKay, have to say about this.

Here's a link to the iTunes podcast of the John Laws' interview with Kristina Keneally on 7 February:

http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewPodcast?id=415158309

The interview with Keneally starts around 27 minutes into the podcast, and the cited quote is around the 40minute mark.