❓ Question regarding the financial and operational impacts of privatising a commercial arm of Landgate, focusing on revenue, fees, and data integrity. The answer provides some financial details and assurances, but withholds key information citing commercial sensitivity.
AnsweredQoN 3492Legislative Assembly
Asked
14 August 2018
Member
Portfolio
Treasurer; Minister for Finance; Energy; Aboriginal Affairs
QuestionView source ↗
I refer to the recent State Government decision to privatise a commercial arm of Landgate, and ask: (a) Will you table any business case/review /scoping study undertaken by Government supporting this decision; (b) What is the expected net returns to Government from the statutory authority (Landgate) prior to the privatising of the commercial arm; (c) What is the predicted net returns to Government from the statutory authority (Landgate) following the privatisation of the commercial arm; (d) Will Landgate require a community service obligation (CSO) payment to support its operations following the privatisation of the commercial arm; (e) If not, what is the expected increase in fees and charges of the remaining services offered by Landgate; and (f) What assurances can you give that preserve the property transaction integrity of landgates processes?
AnswerView source ↗
Answered
18 September 2018
Response time
9 days
(a) The scoping study on the partial commercialisation of Landgate is Cabinet-in-Confidence. The report has information regarding estimates of value and strategies for maximising value which, if released, would compromise the State’s ability to realise maximum value.
(b) The expected net returns to Government from Landgate (dividend and tax equivalent regime payments less appropriation) from 2018-19 to 2021-22 is -$4.1 million.
(c) As a result of the partial commercialisation there will be a reduction in ongoing revenue to Landgate, but this will be considered by the Government in connection with the amount of upfront proceeds to be received. Further work is required to determine the exact scope of the partial commercialisation and the revenue model before predicted net returns to Government after the commercialisation can be confirmed.
(d) The partial commercialisation only relates to automated land titling functions, namely transactions that are processed electronically without the need for staff to manually process or exercise discretion. Landgate already receives appropriations from Government for some of the other services it provides that will not be included in the partial commercialisation.
All of Landgate’s revenues and expenses after a partial commercialisation will be assessed to determine the right level of appropriation to ensure all its services are maintained.
(e) As publicly announced, increases in fees for transactions for the partial commercialisation will be capped at CPI or CPI plus one percent. The process for setting fees for remaining services will be unchanged by the partial commercialisation.
(f) The important roles of the Registrar and Commissioner of Titles in upholding the integrity of the register will be maintained after the partial commercialisation. The State will continue to protect property rights and guarantee the indefeasibility of title. Landgate currently engages private providers to deliver technology services related to these automated functions, and has done so for over 20 years. The privacy and integrity of information maintained by the provider over this period has never been compromised. The commercial operator will similarly maintain this information, with strict performance measures, operating protocols and service level agreements to be part of the contract with the new operator.
(b) The expected net returns to Government from Landgate (dividend and tax equivalent regime payments less appropriation) from 2018-19 to 2021-22 is -$4.1 million.
(c) As a result of the partial commercialisation there will be a reduction in ongoing revenue to Landgate, but this will be considered by the Government in connection with the amount of upfront proceeds to be received. Further work is required to determine the exact scope of the partial commercialisation and the revenue model before predicted net returns to Government after the commercialisation can be confirmed.
(d) The partial commercialisation only relates to automated land titling functions, namely transactions that are processed electronically without the need for staff to manually process or exercise discretion. Landgate already receives appropriations from Government for some of the other services it provides that will not be included in the partial commercialisation.
All of Landgate’s revenues and expenses after a partial commercialisation will be assessed to determine the right level of appropriation to ensure all its services are maintained.
(e) As publicly announced, increases in fees for transactions for the partial commercialisation will be capped at CPI or CPI plus one percent. The process for setting fees for remaining services will be unchanged by the partial commercialisation.
(f) The important roles of the Registrar and Commissioner of Titles in upholding the integrity of the register will be maintained after the partial commercialisation. The State will continue to protect property rights and guarantee the indefeasibility of title. Landgate currently engages private providers to deliver technology services related to these automated functions, and has done so for over 20 years. The privacy and integrity of information maintained by the provider over this period has never been compromised. The commercial operator will similarly maintain this information, with strict performance measures, operating protocols and service level agreements to be part of the contract with the new operator.
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