Ministerial Statement

Land Services SA

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:04): I seek leave to make a ministerial statement.

Leave granted.

The Hon. A. KOUTSANTONIS: I am pleased to inform the house today that the state government has appointed Land Services SA as the exclusive provider for transactional land services. Land Services SA comprises globally recognised investors Macquarie Infrastructure and Real Assets and the Public Sector Pension Investment Board, which both enjoy distinguished track records of long-term investing in the provision of essential services. Under the commercialisation contract, the government will retain key legal, policy and regulatory functions and responsibilities, while the private sector takes over the processing of transactions for the next 40 years.

The government will continue to set prescribed fees and charges for land services. The change will reduce future operating costs to government, drive innovation in customer service, promote investment in systems and reduce risks to government in future ICT upgrades. The government will receive $1.605 billion in an up-front payment, which includes certain optionality for the life of the contract.

The government will also receive an ongoing royalty stream that can be invested in critical infrastructure and essential services, benefiting all South Australians. Land Services SA has agreed to establish an innovation hub in Adelaide, provide $35 million in ICT investment in South Australia and work with local digital start-ups. This is an absolutely outstanding result for the state. I am also very pleased to say that all protections for the people of South Australia, which I announced in the 2016-17 state budget, will be achieved. These include:

the government continuing to guarantee indefeasibility of property title, supported by the statutory assurance fund;

no change to Torrens titles or other legal status of land;

the Registrar-General, Valuer-General and the Surveyor-General continuing as statutory officers;

the government continuing to set regulated fees and charges, with no changes other than the standard annual increases applied;

the government retaining ownership of tilting and valuation data and associated intellectual property;

stringent service delivery standards, data security and privacy protections, with penalties up to termination of the contract for breaches; and

maintaining existing terrestrial and online access arrangements, including the Adelaide office of the LTO and over-the-counter services.

The new service provider is expected to make offers of employment to a significant number of staff currently performing transactional and land services. The majority of remaining staff will either assist with the transition to the new service provider or be placed in positions or functions retained by government following consultation, which is underway. A small number may be placed in alternative positions in the South Australian public sector or managed in accordance with usual government practice. Importantly, the general public and customers of transactional land services will not notice any difference to the service following the transfer.

The appointment of Land Services SA is the result of an open, competitive, multistage selection process, which included strong legal and probity oversight. Land Services SA submitted a binding bid that compares favourably with other land registry transactions, including the recent commercialisation by the Liberal government of New South Wales. Land Services SA is a highly qualified provider with significant technology and change management experience.

The new operator will adopt the existing Lands Titles Office information technology systems, and the contract will see the bringing forward of innovation and investment in transactional land services, including creation of new product offerings to the market. Responsibility for land registry and property valuation services will gradually be transferred during the coming months, with Land Services SA receiving exclusive rights to commercialise related data, subject to government approval.

I welcome the fact that debt funding for the transaction has been provided by leading national and international banks. Clearly, South Australia is a very attractive investment destination for financial institutions. The deal involves debt funding from three of the five major banks which are subject to the South Australian major bank levy. Acts speak louder than adverts, especially those advertisements by the Australian Bankers' Association, which seek to disparage the state. This is the reality: not only are banks willing to invest in South Australia but they are actually doing it.