Unqualified audit opinions were issued on the NSW Government controlled insurance and compensation entities’ 30 June 2013 financial statements, except the NSW Self Insurance Corporation (SICorp). SICorp’s audit opinion was qualified due to non-compliance with Australian Accounting Standards applicable to general insurance contracts. The auditor’s reports drew attention to the significant uncertainty in estimating outstanding claims liabilities of $14.0 billion in the Workers’ Compensation Nominal Insurer and $2.1 billion in the Lifetime Care and Support Authority. The audit of the Building Insurers’ Guarantee Corporation was not complete at the time of this report and is excluded from this commentary. 

In our opinion the Government’s ‘no net cost to government’ requirement was a legitimate (but not the only possible) basis for the tunnel bid process. The Government was entitled to decide that tunnel users meet the tunnel costs. Structuring the bid process on the basis of an upfront reimbursement of costs incurred (or to be incurred) by the Roads and Traffic Authority (RTA) was therefore appropriate.

In our opinion, however, the Government, Treasury and the RTA did not sufficiently consider the implications of an upfront payment involving more than simple project cost reimbursement (i.e. the ‘Business Consideration Fee’ component). In addition, the RTA was wrong to change the toll escalation factor late in 2002 to compensate the tunnel operator, Cross City Motorway Pty Ltd, for additional costs.

Parliamentary reference - Report number #152 - released 31 May 2006

In our opinion there are inadequacies in the current arrangements for detecting unauthorised driving. For example better information is needed on the extent of unlicensed driving. This may require giving the NSW Police power to conduct random licence and registration checks. In addition, there are technological and legal constraints to the efficient and effective detection of unauthorised driving.

Parliamentary reference - Report number #115 - released 4 September 2003

A staged, systematic and careful approach and extensive business re-engineering effort underpinned the Roads and Traffic Authority's (RTA) steady progress in providing customers with a range of reliable and secure online registration services. The RTA’s consistent and disciplined pursuit of new and challenging e-business opportunities is commendable.

Parliamentary reference - Report number #111 - released 11 June 2003