Data experts, union slam plan to outsource NSW driver’s licence printing

Critics have warned that a proposal to outsource the manufacture of NSW driver’s licences will put motorists’ sensitive information at risk and cost local jobs.

The state government is considering outsourcing the manufacturing of driver’s licences, with critics warning the proposal could cost jobs and risk motorists’ sensitive information “being compromised”.

An official “Request for Information” was published last month by the Department of Customer Service (DCS) on the state government’s opportunities hub web page, calling for contributions from “market players and industry experts” to “understand the supplier market for outsourced Driver’s Licence card production”.

The department wrote it was after card design and specifications as well as the ability to meet production volumes of “2.7 million licences annually”.

Supply chain details for card “production, affixing and mailing” were also requested from interested parties, as well as “transition in requirements” to begin the manufacturing process.

Manufacturers must hold a government ICT services scheme membership to be eligible to become a supplier, according to the notice.

Service NSW is looking to outsource the production of Drivers Licences. Source: Service NSW

A statement from Service NSW said current card manufacturing was at “end of life” and the agency was “considering whether to replace this equipment or whether there are alternative options”.

“To support this decision, Service NSW is seeking information from industry on licence printing options,” the statement read. “No decision has been made regarding future printing of these licences.

Opposition spokesman for customer service and digital government James Griffin. Picture: Supplied

“This is not a tender, it is a Request for Information to understand best practice options … the privacy and security of people’s data is of utmost importance.”

Nick Savvides, Asia Pacific Chief Technology Officer at Forcepoint, warned the use of a third-party company could leave motorists’ names, addresses, dates of birth, and facial images vulnerable to scammers in the event of a major data breach, adding that officials would need to seek out extra data security measures.

“The more people or systems that have access to sensitive data, the bigger the risk becomes, as each carries a risk of being compromised,” Mr Savvides said.

“If the goal is to cut costs, I’m not sure they’ll save any money, as the government will have to factor in the price of additional security and supervision to ensure the protection of NSW residents’ private information.”

Professor Sanjay Jha, from UNSW School of Computer Science and Engineering, added: “A lot of these outsourcing decisions are driven by cost-saving for the government.

“Any time you have sensitive data outside of your organisation, you’ve got to be worried, especially if it’s a private company,” Professor Jha said.

“They are contractors in it for profit making … they will be taking shortcuts.”

Service NSW is expected to make a final decision later this year.

Roughly ten staff members are involved in Service NSW’s in-house licence printing and production operation.
It’s understood other Australian states are already engaging third-party companies for these services.

Opposition Customer Service Spokesperson James Griffin urged the Minns government to “back NSW manufacturing and technology” and abandon the outsourcing proposal.

“We might be seeing NSW driver’s licences with the words Made in China on them very soon, job losses at the NSW card-printing facility, along with personal data heading offshore,” Mr Griffin said.

“The Public Service Union have already warned the Minns government that they don’t want any more job losses at Service NSW — this time it will be manufacturing jobs.”

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Originally published as Data experts, union slam plan to outsource NSW driver’s licence printing