The federal government has not ruled out creating a Centrelink "mega-office" to serve much of Newcastle, citing "commercial-in-confidence" as a reason for not elaborating on its plans.
As part of a proposal revealed almost two years ago, the government was planning to merge five Centrelink offices, including the Mayfield and Newcastle service centres, into one site.
It ran an expressions of interest process which concluded in early 2022 seeking 8100 square metres of office space in an area spanning Waratah, Georgetown, Hamilton North, Hamilton East, Broadmeadow, Newcastle West, Wickham, Maryville and Tighes Hill.
The new office would have housed about 500 staff and resulted in the Newcastle and Mayfield service centres closing, but the head of Services Australia - the department which Centrelink and Medicare fall under - stressed that no jobs would be lost in the merger.
The Newcastle Herald reported this time last year that at least half a dozen formal EOIs were submitted, but the government had appeared to have shelved the plan in light of the coronavirus outbreak.
It had mooted 2022 as a timeline for consolidating the existing tenancies.
Newcastle MP Sharon Claydon, who has been against the merger proposal from the start, wrote to the Government Services Minister Linda Reynolds last week seeking clarity about whether the plan was dead in the water or would be revived.
"Novocastrians are living under a cloud of uncertainty regarding the closure of the Mayfield and King Street Centrelink offices," she wrote in the letter.
"Can you please provide assurances to the people of Newcastle that you will terminate any plans to close the existing Centrelink offices once and for all."
Ms Claydon said the government's "provision of essential services" in the electorate was already "alarming" and Centrelink was "without contest, the number one issue" constituents raise with her.
"They tell me how distressing it is to be directed to online services or be left on hold for hours waiting for a human voice," she said.
"Centrelink has provided critical support to many Australians over the course of the pandemic.
"Any decision to close or reduce access to Centrelink shop-fronts in Newcastle is unconscionable."
Services Australia general manager Hank Jongen left the door ajar for the merger to proceed in response to questions from the Herald on Tuesday. "We're continuing to look at the best servicing model for the Newcastle community," he said.
"At this stage, our current office arrangements will remain the same, and we will update the community if there are to be any changes.
"We are committed to maintaining face-to-face services for Newcastle residents, providing Medicare and Centrelink services in the same location."
Mr Jongen said details about the EOI process the government ran, along with any "proposed timeline", were "commercial-in-confidence" and could not "be released at this time".
