Shadow Treasurer Ryan Park has today called on Premier Berejiklian to rule out the privatisation of any part of Service NSW, after revelations that they looked into a for-profit model.
A secret consultant report commissioned by the Government in 2015 and obtained through Freedom of Information shows that the Liberals and Nationals looked into a privatised system used in Canada and sought to maximise the profitability of Service NSW.
The NSW Liberals and Nationals have overseen $70 billion in privatisations since coming to power, including the privatisation of the Lands Title Office, which was also privatised in Canada.
The Liberals and Nationals increased profitability of the electricity networks and WestConnex before they sold off these assets, denying the state access to income streams.
The consultants, Corporate Value Associates, looked into a “contestable pricing model” for Service NSW.
The consultant recommended that Service NSW adopt a 3 to 4 per cent profit margin if the Liberal and National Government wanted Service NSW to operate as a commercial entity.
The consultants concluded that fees would need to increase and more transactions would need to move online to achieve a 3 to 4 per cent profit margin.
Over the past two years the Berejiklian Government has pushed Service NSW down this path with Government Minister’s praising increased online transactions.
Credit card surcharges and other fees have also increased over this time.
Corporate Value Associates provided the NSW Government with a case study of the government services model used in Alberta, Canada.
Government service delivery was privatised in Alberta in 1994 and involves private registry agents who provide services and charge fees.
“The privatisations and sell offs have gone too far. I don’t want to see any part of Service NSW flogged by a privatisation-hungry Government,” Mr Park said.
“Everyone in NSW knows where the Berejiklian Government stands on privatisation. They should be upfront with the people of NSW and say what will be privatised next under a re-elected Berejiklian Government