NSW Premier Mike Baird has defended his controversial decision to privatise the state's land titles registry, saying similar plans have been executed overseas and "there are no concerns".
But his words of reassurance are in sharp contrast to warnings from experts who say the few, similar moves around the world have been unsuccessful.
In an interview on ABC Radio on Wednesday, Mr Baird said the government was leasing the Land and Property Information (LPI) unit to boost innovation, efficiency and service, and to fund its $1.6 billion sports stadium package.
He is speeding ahead despite warnings from top legal figures that "everyone will lose" and strong opposition from real estate agent, developer and surveyor groups, which fear higher fraud risks and costs.
"There's no doubt, it's been done around the world, so it's been done in Canada, there are no concerns there, provided you've got the regulatory functions, which we do," Mr Baird told ABC presenter Wendy Harmer.
"We will retain the data and the information, which we do, there's a ministry function that can be done, and to provide benefits through economy of scale, in addition for potentially other services that can be provided to the consumer."
The 150-year-old registry, based on the Torrens title system, keeps the sensitive details of who owns what land and is the envy of the world.
Emeritus Professor Ian Williamson, a land administration expert at the University of Melbourne, said he was not aware of one case where the privatisation of a land registry has been successful.
He said in the US, where title systems have come to rely on insurance rather than government guarantees, it has been a "disaster" from a public policy perspective.
"The integrity of the land title system is at the heart of public confidence in the land market and all the complex commodities that leverage off the market and create wealth in a first world country," he said.
"Governments mess with that at their peril. The global financial crisis is just one example."
In Canada, provincial governments are stopping the spread of the privatisation of land registries, with Nova Scotia in April deciding "it was not the best option … a government-led approach offers certainty".
Its land registries in the provinces of Ontario and Manitoba have been outsourced to Toronto-based Teranet Inc, owned by Borealis Infrastructure.
Peter Currie, a director at the Ontario Association of Professional Searchers of Record, told Fairfax Media the provincial government had lost control of the valuable land titles database.
"It is now extremely expensive to access and our method of access is restricted by a private actor with no concern over public policy issues," he said.
"Teranet has become a multibillion dollar business feeding upon a captive audience. Because Teranet is a monopoly licensed by the government we have no choice but to pay these fees."
Mr Currie said that based on his experience, if the NSW government charges ahead with the lease, "it will be a disaster".
After two attempts in two years, the British government ditched its privatisation plans last month, saying its registry "should focus on becoming a more digital data-driven registration business".
'Powerhouse consortiums' preparing bids
Earlier this week, the Law Council of Australia and the Law Society of NSW together urged the government to abandon its privatisation plans, saying consumers will end up paying more for a lesser service.
When this point was raised on ABC Radio, Mr Baird replied: "The concerns that they've raised we feel have been addressed."
Mr Baird mentioned that recently J. Bruce Flatt, chief executive of Brookfield Asset Management, had praised the government for privatising public assets and investing in infrastructure.
"He looked at what we are doing on a limited number of assets, he said that asset recycling was a model for the world in terms of renewing and upgrading infrastructure, providing economic growth and investment opportunities," he said.
Mr Flatt is reportedly Canada's 94th richest citizen. Brookfield is rumoured to be a potential buyer of the registry.
It's understood "powerhouse consortiums" are gearing up for the auction, with Property Exchange Australia (PEXA) close to signing up with Link Group and Macquarie Group's Macquarie Infrastructure and Real Assets to make a joint bid.
Teranet is teaming up with ASX-listed registries owner Computershare, in a group advised by Macquarie Capital, and Hastings Funds Management is leading a consortium that includes First State Super and property sector upstart Advara.
In a state of flux
The LPI appears to be in a state of upheaval, having been split into five units and gutted of 70 employees, ahead of its planned privatisation.
In June, Jeremy Cox was appointed interim registrar general, despite having little land title experience. In September, Narelle Underwood, "a leader in her profession", was appointed Surveyor General.
The legislation to allow the 35-year lease was rushed through Parliament in September, with no public scrutiny or independent assessment. The scoping study is being kept under wraps.
Labor's finance spokesman Clayton Barr said the government's assurance that fee increases will be capped at Consumer Price Index (CPI) meant little because it had already hiked fees up by an average 25 per cent.
"It claims the 25 per cent fee rise, just before going to sale, was 'cost neutral' but it will not release the modelling," he said.
"They also fail to mention services that don't yet exist, that could be introduced in the future, that do not currently have a fee allocated and will not be limited by the CPI."
Greens MP Justin Field said Mr Baird should heed the warnings and stop the sale.
"The idea that the public servants who built this world class system can't continue to modernise and adapt it to future needs while retaining a profitable service doesn't stack up," he said.
"The warning about risks to the intellectual property of the service and the potential for property prices to rise as people are forced into expensive title insurance policies should be enough to halt this sale."
