Government Fails to Measure Performance after Privatising Road Maintenance Contracts

Thursday, June 15, 2017 | Dr Mehreen Faruqi

NSW Greens MP and Transport spokesperson, Dr Mehreen Faruqi MLC, has responded to the Auditor General’s report into Roads and Maritimes Services’ management of road maintenance contracts in Sydney’s south and west.

The report has found that RMS' management of the outsourced Stewardship Maintenance Contracts has not been effective, particularly in failing to measure performance by contractors and verifying financial data.

Dr Faruqi said:

“Before this Government completely washed their hands off of road maintenance, RMS at least had a role in managing the contracts. But for the past three years, we have had this situation where hundreds of millions of dollars in public money are going to private contractors with little or no oversight on their performance. 

“It’s a sweet deal for the contractors, who have been able to get by without having to prove that they have met any of the cost benefit or performance targets. The failure of this government to measure performance raises real questions about what the contractors are doing with hundreds of millions of dollars of public money and how they are held accountable.

“The wholesale outsourcing of road maintenance was touted for its efficiency and cost savings, but it has turned out to be yet another exercise in advancing their agenda of privatisation. The South and West region contractors are supposed to look after 1,300 kilometres of roads in Sydney but we can’t have any confidence in what they have actually done because it hasn’t even been measured” she concluded.

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