The government was on Saturday scrambling to contact property owners affected by an administrative error that Labor has branded "a stuff-up of monumental proportions", where at least 140 new owners were not told they would be in the path of a future motorway before they bought.
And the government was forced to deny any link between the error and the ongoing outsourcing of services in the agency responsible, Land & Property Information, which is set to be privatised.
The Minister for Finance, Services and Property, Dominic Perrottet, on Friday night revealed that buyers were given incorrect information when they did their due diligence with the government agency, potentially exposing the government to millions in compensation claims.
The error affects at least 140 properties purchased between June 27 and October 24 of this year that are in or near the planned F6 extension corridor in Sydney's south and the Werrington Arterial project.
Mr Perrottet instructed the Customer Service Commissioner to attempt to track down affected residents through their conveyancing lawyers and information brokers on Friday and Saturday, with plans to assemble and deploy case managers to start doorknocking properties on Monday.
The affected owners are likely to face a significant hit to their property value and amenity, or compulsory acquisition like the homeowners affected by WestConnex construction.
The relevant database is the Central Register of Restriction (CRR) where government departments and utilities are supposed to declare their interests in land.
Fairfax Media has been told a list of properties affected by the proposed F6 motorway and the Werrington Arterial project provided by Roads and Maritime Services to Land & Property Information in June was apparently not uploaded onto the CRR database until the error was discovered on Thursday.
Minister Dominic Perrottet has requested the Secretary of his department conduct an urgent investigation into the embarrassing oversight and said the government's "first priority is ensuring that affected residents are provided with the correct information and support they require."
From July 1 this year, the government broke the LPI into five separate units, increased fees and ended direct public access to the CRR, forcing the public to use licensed information brokers to access it.
Labor's Roads spokeswoman Jodi McKay said in a statement "the minister can say this has nothing to do with the fact that this function was privatised from July 1 and that virtually all the cases happened after that date but given this hasn't happened in 150 years of land titling, his claim is frankly incredulous. Until he launches a full and transparent inquiry into what happened the community has every right to be sceptical of his claims.
"This is a stuff up of monumental proportions where people's lives are going to be turned upside down and the Minister needs to get to the bottom of was was behind this 'administrative error' and reassure people that they can rely on the system."
The Treasurer Gladys Berejiklian, who is planning to privatise Land & Property Information, said Friday, "This is an operational matter which is being investigated by the Department of Finance, Services and Innovation. There is no impact whatsoever on the transaction."
The proposed F6 motorway runs from St. Peters to the Sutherland Shire in Sydney's south; and the Werrington Arterial project is a stretch of road in Claremont Meadows in the west.
"I wasn't aware of the story but I am not surprised to hear that the Baird government has made yet another mistake," said Jenni Gormley, Chair of the Sutherland Shire Environment Centre. "We have for a long time opposed th extension of the F6. Much of the corridor includes open space and community facilities that Shire residents are not keen to lose."
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