http://www.news.com.au/sport/sports...r/news-story/4f2aa21847982ca662d332c6947144fa
IT’S billions of dollars of investment in new stadiums that sports-mad Sydneysiders have been crying out for.
But there are accusations the State Government could be sacrificing NSW jobs to pay for new NSW stadiums. A new arena in Parramatta, in Sydney’s west, and an upgrade to the ANZ Stadium at Sydney Olympic Park, depend on the sale of a government-owned department to the private sector.
Labor claims an external review of the soon to be privatised NSW Land and Property Information office (LPI) amounted to the engagement of a “razor gang” to provide a “playbook” about how private companies can slash costs by outsourcing staff. The more money can be saved, Labor say, the more money the Government can sell the division for.
The Government says the review, which was due to report its findings last week, was “routine” and aimed to “improve service levels and efficiency”.
On Thursday, bids closed for the 35 year-lease of the LPI, the organisation that houses the records of every single property in the state. Bidders are likely to include private equity and financial giants including Carlyle Group, Westpac and First State Super.
The Government is selling off the unit, otherwise known as the land titles registry, for a hoped $2 billion windfall.
That money is planned to go towards major infrastructure projects including the new Western Sydney Stadium where Parramatta Eels and Western Sydney Wanderers will play. Demolition work at the site in Parramatta for the new stadium has already begun.
Meanwhile, the historic LPI building — overlooking the CBD’s Hyde Park — could see its public sector staff kicked out in favour of hotel guests.
Labor says a tender document reveals the NSW Government is spending taxpayers’ money on outside consultants to pave the way for new private owners to cut costs — helping them recoup some of the $2 billion asking price.
The document, from February, states the Government has embarked on a review of LPI’s call centre operations despite the fact they will soon be relinquishing control of the organisation.
The Government has previously said the 400 jobs at the LPI unit being privatised, mostly based in Sydney and Bathurst, would be safe for four years. But, being contractors, most of the staff in the call centre are not subject to the Government’s jobs pledge.
There have also been claims even the 400 jobs secured may not be as solid as first reckoned.
Fairfax has reported that a concession deed regarding the sale, marked “Sensitive: NSW Cabinet,” does not stipulate that those jobs needed to be physically located in NSW raising the prospect that roles could move interstate or even overseas which would likely lead to resignations. The Government has insisted that is not the case.
The review, by consultancy firm Fifth Quadrant, was due to report its findings last Friday, the day after bids for LPI closed.
Fifth Quadrant, that will receive at least $157,000 for the work, states on its website that it has “specialist expertise in managing tender processes for outsourcing of contact centres”.
In 2012, a Fifth Quadrant staff member spoke to the
ABC about the benefits of international call centres serving Australian customers.
“The Philippines, as an option for customer contact communication, offers a relatively neutral English accent and a good cultural alignment relative to the Indian destination, where the accent is less neutral,” the staff member said.
“Sending in the razor gang to cut to ribbons to our wonderful land registry and sack dozens of highly-skilled workers before sending their jobs offshore, at the taxpayers’ expense, is not what the people of NSW signed on for,” he told news.com.au.
“It is incredible that the Government is spending taxpayers’ money on selling something that no-one wants them to sell. This money would have been better spent on our schools and hospitals if only this Premier would give up on this ridiculous idea of selling our crown jewel,” said Mr Barr.
A spokesman for the Department of Finance, Services and Innovation said it was actually the staff who oversee the centre who were the driving force behind the review.
“The LPI executive, who will transfer to the new operator, are proactively considering opportunities for innovation and service delivery enhancement in the new operating mode.
“LPI routinely conducts operational reviews to improve service levels and efficiency.”
The review would provide the regulator with a “baseline” for current operations, he said.
“There is a four-year job guarantee for all LPI staff as per the enabling legislation. This includes the three LPI employees who currently supervise call centre operations. The jobs must remain in NSW during that time.”
The Department confirmed that after the four year period, the new owners would be free to make any changes they wished to staffing, albeit with the approval of the regulator.
As the majority of the call centre staff were contractors the Government could not make any guarantee on their jobs as they were not employed in the public sector.
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