When a government sells one of the assets it owns something that once belonged to " the people " passes into other hands. When that same asset is leased for a period of time, it delivers instant money but will return to public ownership once the lease expires.
Such is the case with the one hundred and fifty year old Land Titles Registry office. This government instrumentality provides certification of land title that is essential to legally complete the transfer of property from one person to another in this state. It is the Land Titles Registry that collates past ownership of all parcels of land and records all future events that may have a bearing on the use to which that land may be subjected. It will make a buyer aware that it is subjected to easements or other legalities by other outside interests.
Having the Land Titles office pass out of public hands has been criticised by the Law Council of Australia, the Law Society of New South Wales, the Real Estate Institute of New South Wales and the Institute of Surveyors, which question why the government would privatise an asset that delivers them a profit of $ 130 million annually.
The reason for that decision is easy to see. The successful bidder will hand over a sum of $ 2.6 billion in exchange for that lease and this will enable the government to fund the upgrading of Parramatta and ANZ stadiums and the refurbishment of Allianz stadium. In addition, $ 1.6 billion will be deposited in the Restart NSW fund for future projects and about a third will be spent in regional areas. The state will be able to immediately fund urgent works that are otherwise out of financial reach.
There is no doubt that the successful bidders are reputable organizations.. Australian Registry Investments ( ARI ) is eighty percent owned by Australian shareholders ( Including Hastings and First State ) and twenty percent by RBS Pension Trustees of London. It is also evident that they expect to make a profit from this investment.
The objections are based on the possibility that the fees to obtain this vital information to allow conveyancing to proceed may rise sharply and the new ownership may fail to pass on pertinent details not directly related to title. For instance, if the owners are a married couple going through a divorce action the apportionment of ownership may be decided by that court and must delay granting of clear title.
In thirty-five years the Land Titles Registry office will again revert to state ownership. In 2052 whatever government is holding office will decide whether to offer it for lease for a further period, or to remain as a revenue source contributing to the running of the state.
Such is the ever changing face of politics. Whichever party is in office is judged by the benefits it delivers and what can be clearly seen in place and working on voting day is usually what impresses the voters. There is a very big incentive to bring projects to visible maturity within each election cycle without piling up additional debt. Leasing an asset is an obvious source of such " instant money " !
What decision is made in 2052 will be determined by whatever political view is in vogue at that time.
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