Private sector options on the table to fix car registration

Vehicle registrations could soon be in the hands of private companies, as the state government explores options to manage the problem-riddled system. It comes just days after the state treasurer denied privatising sections of VicRoads.

Private companies could become involved in managing Victorian’s car registrations and licences as the Andrews Government investigates the future of the trouble-plagued system.

The state government last night revealed it had launched a scoping study into the VicRoads division but ruled out that it would consider privatisation.

It comes after Treasurer Tim Pallas was accused on Tuesday of planning to sell off the state’s motor registry services.

The study, led by consultancy firm KPMG, will examine whether to integrate the system into Service Victoria or create a partnership with the private sector among other options.

“We’ve been very clear on this — we will not privatise the registration and licensing function of VicRoads,” Mr Pallas said.

“We hope to deliver savings for motorists and are looking at several options for more efficient licensing and registration.”

Roads Minister Jaala Pulford said Victoria needed the best possible system to support drivers.

“Licensing and registration is all about ensuring we have safe drivers in safe vehicles on our roads,” she said.

An inquiry by the Victorian Ombudsman found registration fraud had become a major issue, with crooks using outdated VicRoads processes to steal cars.

The ageing registration and licensing system is incompatible with the Victoria Police database while a planned upgrade, dubbed Rand L, was abandoned in 2015 after years of failure.

But Australian Services Union Branch Secretary Lisa Darmanin said staff were yet to be consulted over the process.

“If VicRoads’ registration and licensing function were sold off, privatised or delivered through a service contract, there would be very serious implications for Victorians and staff at VicRoads,” she said.

“The ASU is exploring taking this matter to the Fair Work Commission because the workers at VicRoads have a right to consultation that the Andrews Government is ignoring.”

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Opposition Treasury spokeswoman Louise Staley said the government could not rule out higher registration costs.

“Increased registration fees will only worsen the cost of living pressures placed on Victorian families because of Daniel Andrews and Labor,” she said.

“The only thing Victorians can know for certain is that when Labor can’t manage money, they come after yours.”

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