Serco has been shortlisted by the Victorian government for a lucrative contract to lead the “part-privatisation” of VicRoads.
Serco is among three consortiums shortlisted by the Victorian government to participate in a “joint venture model” for some of VicRoads’ core functions, including registrations, licences and custom plates. The winning bidder will also replace VicRoads’ outdated IT system.
In February this year, as the bidding process was heating up, Serco was listed as a client of Cornerstone Government Relation, a lobbying firm based in Victoria, on the Victorian lobbyist register
The firm’s staff include Daniel Hoare, who was previously the executive general manager for corporate affairs at V/Line and chief of staff the then Victorian Minister for Roads, Road Safety and Ports from 2014 to 2017 Luke Donnellan. Serco also engages the services of a separate lobbying firm in Victoria.
But a spokesperson for Serco said the company is not actually using Cornerstone’s services in Victoria, and is not engaging in any lobbying in relation to the VicRoads bid.
Serco has jointly bid for the VicRoads work with public infrastructure investor Plenary.
It is one of three remaining bidding groups for the work, along with a partnership between Aware Super and Macquarie Infrastructure and Real Assets and Brookfield and Morrison & Co, as reported by The Australian.
Final bids for the work will have to be placed by next month.
Serco has existing close ties with VicRoads, with a contract for the operation of the state’s traffic cameras worth $178 million over up to a decade.
The Victorian government committed last year to partly privatise core functions of VicRoads after completing a detailed scoping study.
The winning private company will rebuild and run VicRoads’ troubled IT system for up to 40 years, marking the first time an Australian jurisdiction has partnered with the private sector for this task.
The private consortium will “operate the relevant functions of registrations and licensing, while modernising the IT system, promoting innovation, and enhancing customer experience through increased investment”.
The state government has promised that all VicRoads employees will be able to continue in their relevant roles in conditions that are “no less favourable”, after the private companies are brought in.
“All Victorians benefit from the hard work performed by VicRoads workers and at every step we’ll ensure these employees’ rights and entitlements are protected and jobs remain secure,” Victorian Treasurer Tim Pallas said last year.
“This is new ground for a motor registry and I’m excited to see what the private sector can bring to this partnership, and in the best interest of the employees and community.”
The public sector union is staunchly opposed to this move, saying it is a “bad decision”.
“Only private companies will benefit from the privatisation of VicRoads. The Andrews government can’t present itself as worker-friendly while treating VicRoads workers the way they have been treated,” the Australian Services Union said.
The Victorian government has previously attempted to replace the ageing VicRoads tech system at a cost of $97 million, but this project was scrapped in 2015.
In contrast to Victoria’s approach, the New South Wales government has moved its registration and licencing responsibilities within Services NSW, and recently launched its own digital version of drivers licences.
