Bye bye Bairdy

BY D. E. GRIEVE QC

For some extraordinarily uncompromising – and quite irrational – reason, shortly before Mr Baird’s retirement as NSW Premier, the government seduced the parliament into passing legislation to privatise the Land and Property Information Service (LPI). So, for the next 35 years, the crucially important process of land title registration will be administered by some privately funded corporate body.

We have not been able to discover the price for which the government proposes to flog off this crucial asset. But it is rumoured to be in the order of $1.5 billion. Given the annual return and the monopoly of the service, if that is the best price that the Treasurer can negotiate, quite obviously we would be better off if he were to run a corner store.

It seems that the government’s justification for this extraordinary legislation is that the proceeds are to be paid into the Restart New South Wales Fund to finance infrastructure projects. These projects are designed to improve public transport, roads, hospitals and other places of employment for members of the public service.

In other words, what the government has proposed is that a body of critical importance to the ownership and management of land in the state, which incidentally also provides a healthy financial return from its operation, should be sold to a privately owned enterprise. The proceeds of which may be ploughed into some capital project or projects without regard to proper economic analysis.

It is in fact an abrogation of fundamental governmental responsibility. Of necessity the service presently provided by the LPI is monopolistic. The buyer, whoever it may be, will apparently have an unfettered power to increase the prices for the services they provide in the future. Much has been said recently about the increasingly unaffordable prices within the Sydney property market. This privatisation of the LPI will only serve to pour petrol on the flames which already flare in that regard.

Above all, and most importantly, our property titles will henceforth be under the control of some presently unknown corporation. Who will control the corporation? Where will it be located? Will it be subject to Australian law? One thing that can be fairly said with confidence is that it will not be the subject of any parliamentary review. What controls over its confidentiality will exist? What measures, if any, to prevent, or at least police, corruption within its organisation will be available? If loss or damage results to any citizen as a result of maladministration of the legislation – principally the Real Property Act – for which it will be responsible, what guarantee of its capacity to pay that loss or damage will exist?

It seems the legislation, as often happens in our parliaments, was passed without any proper consideration or scrutiny. None of the questions which I have posed appears to have been addressed.

The legislation to which I have referred is entitled the Land and Property Information (Authorised Transaction) Act 2016. The government should come to its senses and move its immediate repeal.