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Secret report reveals controversial NSW rail corporation told to ‘reframe’ its battered image
By Matt O'Sullivan and Adele Ferguson
The same PR company that advised the country’s big banks on how to repair their battered image after a string of scandals has recommended the state’s controversial rail corporation rebrand and change its name.
Internal documents show the government-controlled Transport Asset Holding Entity (TAHE) also plans to spend $34.5 million on consultants over four years. The NSW government has previously been under fire for spending millions of dollars on consultants to advise on TAHE.
A confidential report by PR firm SEC Newgate shows it has been advising TAHE on ways to “reframe” its reputation after “consistent negative media and political attention” last year.
The Transport Asset Holding Entity controls billions of dollars’ worth of the state’s rail assets including trains and stations.Credit: Steven Siewert
It followed a Herald investigation that revealed the government set up the corporation in 2015 to artificially boost the NSW budget by billions of dollars by shifting rail expenses into a shell entity.
The investigation triggered a parliamentary inquiry and prompted former auditor-general Tony Harris to call TAHE a “vehicle of deception”.
The government was forced to write down the value of TAHE by $20 billion and inject billions of dollars into the rail corporation late last year.
SEC Newgate was advising the entity to “perform strongly” in potentially “hostile public set pieces” including the parliamentary inquiry, the release of TAHE’s annual report and budget estimate hearings.
“Shifting public perceptions in this difficult public affairs environment will be challenging and will require focus and consistency over the three-year period of the strategy – and beyond,” SEC Newgate’s report says.
The parliamentary inquiry recommended in April this year that TAHE be dismantled due to the risks it poses to the state budget and the safety of the railways.
In the strategic report obtained by the Herald, SEC Newgate urges TAHE to consider renaming itself once it has “established its corporate narrative” by next year and “enough time” has passed since the parliamentary inquiry.
“SEC Newgate believes this is an appropriate timing for TAHE to consider renaming and refreshing its brand identity – once it has a more established track record and is freer from allegations of ‘spin over substance’,” says its report, which was completed in December.
The PR firm recommended TAHE develop a “compelling narrative” and “thought leadership” program. This would include TAHE chief executive Benedicte Colin aiming to “complete two keynote addresses, an opinion piece and/or an exclusive media interview” this year.
It listed a series of targets for management including two “proactive” media stories and four LinkedIn posts each month, and hosting two “significant” project-related events that would include key stakeholders such as the NSW Premier and the media this year.
Other recommendations include priority CEO meetings and a list of specific journalists to target, ranging from those at The Australian Financial Review, The Australian and this masthead to 2GB, the ABC and 2DAY FM.
To “demonstrate community value”, SEC Newgate also outlined a program that provides access to TAHE’s assets for community use. “For example, community street art competitions … and a tidy stations award,” the report states.
NSW shadow treasurer Daniel Mookhey.Credit: Michael Quelch
Shadow treasurer Daniel Mookhey said the government had spent a fortune hiring spin doctors to “cover up their mistakes”.
“TAHE wouldn’t need a battalion of highly paid PR flacks if it wasn’t burning a hole in the state’s finances,” he said.
A TAHE spokeswoman said the corporation “periodically” used consultants for project-specific advice and expertise. “TAHE operates with a lean team which means at times, external expertise is required to be brought in,” she said.
She said there were no plans to change TAHE’s name.
In 2017, consultants from what was then Newgate advised the country’s banks on ways to restore their image and stave off a royal commission after a string of scandals including financial planning ripoffs and dud life insurance policies. Later that year a royal commission was called.
SEC Newgate declined to comment.
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