What is happening to VicRoads?
The Victorian Government has entered into a joint venture partnership with a consortium of Aware Super, Australian Retirement Trust and Macquarie Asset Management, to deliver a modernised VicRoads R&L and CP service.
Through this joint venture partnership, the State will benefit from the consortium’s ability to drive sustained innovation and modernise systems to improve customer experience.
The VicRoads brand will not change and will be used day to day by the joint venture partner. The local VicRoads office will look the same and there will be no immediate changes to the way you access services.
What is a joint venture?
A joint venture is when two parties work together to harness complementary expertise to achieve a common goal. In this case, we are talking about the Victorian Government partnering with a consortium of Aware Super, Australian Retirement Trust and Macquarie Asset Management, to deliver expertise that will enhance the customer service offering for Victorian motorists across the state.
Why is the Government entering into a joint venture?
We are putting customers and industry first, delivering better services, safeguard road safety, and protecting data and privacy. This includes an improved IT system.
This joint venture will allow the State to partner with a consortium of Aware Super, Australian Retirement Trust and Macquarie Asset Management and leverage expertise and service delivery capabilities to offer an improved customer experience for motorists across the State. The model will also ensure that the Government retains all critical regulatory functions related to road safety as well as oversight and setting of essential service fees. Many of the processes, systems and infrastructure that sit behind R&L will benefit from improvements to meet the needs of consumers in a contemporary service delivery environment.
In the partnership, the consortium will lead the operation of the relevant functions of R&L, while modernising the IT system, promoting innovation, and enhancing customer experience through increased investment. For this joint venture, the private sector partner will be responsible for providing capital and assume risk on the upgrade of R&L IT systems.
Who is the Joint Venture CEO? Have other executives been appointed?
Dean Tillotson has been appointed as the inaugural Chief Executive of the Joint Venture. This appointment recognises Dean’s leadership experience and knowledge as the recent head of the R&L business in addition to his previous public and private sector senior leadership expertise.
Geoff Enguell has been appointed as the Director - Service Delivery Support following an extensive career in leadership roles in VicRoads R&L.
Dale Andrea has been appointed as the Chief Information Officer, and a range of other executive and interim executive appointments have also been made.
Who is the joint venture partner?
A consortium comprising Aware Super, Australian Retirement Trust and Macquarie Asset Management Asset Management (the ‘Consortium’) is the successful private sector partner selected to deliver Registration & Licensing (R&L) and Custom Plates (CP) services to Victorians under a new joint venture (JV) arrangement starting mid-August.
The Consortium has extensive experience partnering with governments and organisations to deliver modernised and efficient services. Together they have invested in land registries across Australia and have deep experience investing in infrastructure assets, providing a unique ability to leverage existing knowledge and expertise to ensure a successful transition of VicRoads into the JV.
Is the consortium foreign owned?
More than 75 per cent of the Consortium’s funding is coming from Australian superannuation funds – Australian’s retirement savings are being investing back into essential services provided by VicRoads which Victorians rely on every day.
What technological capabilities does the consortium bring to the joint venture?
The Consortium has extensive experience partnering with governments and organisations to deliver modernised and efficient services. Together they have invested in land registries across Australia and have deep experience investing in infrastructure assets, providing a unique ability to leverage existing knowledge and expertise to ensure a successful transition of VicRoads into the JV.
The State is focussed on ‘future proofing’ and modernising the way we deliver services to the community, while ensuring the highest data privacy and road safety standards. This partnership will fast track the digital delivery of R&L and CP services traditionally offered by VicRoads.
How will VicRoads systems be modernised?
VicRoads’s Registration and Licensing Information Systems will be significantly modernised. VicRoads’s current IT systems have served the Department well - in some cases for over 20 years - and whilst most are doing a great job, they represent outdated technology, do not align with modern ways of working and engaging with our customers, and changes are difficult to make.
Updating technology that is used for functions beyond just registration and licensing (such as fines and demerit points) is a complex undertaking and will require a co-ordinated approach that will involve changes to our business processes as well as the underlying technology, and therefore will need to be done in a co-ordinated way with significant training for our people.
A number of IT systems will be overhauled as part of the IT Modernisation Program. The key mainframe-based registration and licensing platforms (DLIS and VRIS) will be replaced with modern SaaS offerings which will help serve customers in the CSC faster and provider greater digital customer self-help and self-service for those that want to take advantage.
Corporate and Enterprise IT systems (HR, Finance and Procurement) will also be enhanced for the latest functionality available in the marketplace, as well as better integrating these systems into the overall registration and licensing ecosystem.
The way our entire suite of IT systems integrates with each other will also be significantly enhanced, with improvements to web and digital content management to drive better service to customers and partners / agencies. Data services will also be improved, whilst maintaining excellent cybersecurity controls and infrastructure.
When does this arrangement start?
The joint venture partnership will commence in mid-August 2022.
Will this be a 50:50 joint venture / will the State have a majority share?
The State has a minority share in the joint venture, which will enable robust oversight over its functions while allowing for innovation. It is important to note that a joint venture partnership is only one part of the Government’s role in road access and safety, and that key functions will remain fully in Government hands. This includes policy making, regulation, safety and access, data integrity, privacy and security.
Are there any functions that will remain with the State?
The Victorian Government will retain regulatory functions for road access and road safety, regulatory, assurance, policy, and oversight functions.
Road safety will always be a priority for the Victorian Government. Licensing and Registration remains at the heart of ensuring we have safe drivers in safe vehicles on our roads. All reforms to the systems that support our roads, drivers, cyclists will continue to be shaped by road safety principles.
The Victorian Government will also retain regulatory oversight and continue to set essential fees including registration and licensing fees, to ensure that we balance efficiency with value for money for taxpayers and road users. In fact, just this week, we announced an early round of benefits for motorists - providing financial relief in the form of free learner and probationary driver licences and online tests, and re-instating the safer driver discount which rewards all drivers that have demonstrated safe driving behaviours on Victorian roads.
The Department of Transport and Planning will continue to manage some complex customer services for drivers and vehicles, such as driver medical reviews, alcohol interlock and the administration of demerit points.
Are there job losses as part of the process?
Minimising the impact on employees was one of the Government’s key priorities as it developed and approved the proposal in relation to the joint venture option.
All ongoing employees currently involved in the provision of R&L services and CP services have been offered a position, either with the joint venture or the Department of Transport and Planning, on terms and conditions that are no less favourable overall than their current terms and conditions of employment. Employees transferring to the Joint Venture will also receive a range of additional incentives / protections.
More than 60 new jobs have also been created that strengthen the Government’s role in road safety and regulatory oversight. Similarly, additional roles have been created in the JV to support the delivery of R&L and CP services to the community, stakeholders, and industry. Moving forward, it is expected that more than 60 new jobs will also be created during implementation of the IT modernisation program by a joint venture option.
Have employees been forced to move to a joint venture?
The transfer of R&L, CP and Department of Transport and Planning employees to the joint venture entity has been on a voluntary basis. Staff have participated in an extensive staff matching and recruitment process and relevant employees have received offers of employment for a position in the joint venture entity. To date, more than 91% of employees matched to roles in the Joint Venture have already commenced or have accepted offers of employment and will soon commence, with the Joint Venture.
In previous transactions, through the Port of Melbourne Lease transaction and our Land Use Victoria partnership, this Government has demonstrated its commitment to protecting employees’ rights and entitlements in partnership with the private sector.
What will happen to VicRoads?
Registration, licencing and custom plates services will continue to be provided to the community under the VicRoads brand. The joint venture partnership is about modernising VicRoads technology and to offer a greater range of online and digital services for Victorians.
Your local VicRoads office will look the same and there will be no immediate changes to the way you access services.
How will critical road safety standards be maintained?
The State’s responsibility for, and commitment to, road safety does not change.
Road safety will always be a priority for government. R&L remains at the heart of ensuring we have safe drivers, in safe vehicles, on our roads.
This joint venture partnership ensures that critical functions for road safety will remain a focus on all governance, oversight and policy matters, and the responsibility of the Government.
Will Victoria introduce a digital driver licence?
We recognise the ongoing community interest in a Victorian digital driver licence, with Department of Transport and Planning and Service Victoria actively engaging with other jurisdictions to better understand the development and implementation considerations, interoperability of products between jurisdictions and the benefits of digital licensing where it has been delivered. This critical engagement is informing the roadmap for a future digital driver licence, including the delivery timing and release approach for Victoria.
How will privacy be protected if a joint venture is involved?
The State will retain ownership of all registration and licence data. Any registration and licence data accessed by the consortium will be subject to all relevant privacy and data protection laws and regulations and strict contractual obligations. This includes stringent data integrity and security key performance indicators embedded within the joint venture.
Will this partnership negatively impact services and jobs in regional Victoria?
No, VicRoads will continue to operate as a state-wide initiative and the provision of services for regional Victoria will remain a priority. There will be no impact to Victorians accessing these vital services, and no changes to the R&L footprint in the short to medium term.
The provision of a better digital offering, on top of the physical footprint, will make it easier for regional Victorians to do business and make daily transactions.
How can a JV possibly deliver improved systems and customer service without increasing fees or making staff cuts or other cost savings?
The State will retain regulatory oversight and continue to set essential fees including registration and licensing fees to ensure that we can achieve the right balance of efficiency with value for money for taxpayers and road users.
This week, we announced an early round of benefits for motorists - providing financial relief in the form of free learner and probationary driver licences and online tests, and re-instating the safer driver discount which rewards all drivers that have demonstrated safe driving behaviours on Victorian roads.
In the partnership, the consortium of Aware Super, Australian Retirement Trust and Macquarie Asset Management will lead the operation of the relevant functions of R&L, while modernising the IT system, promoting innovation and enhancing customer experience through increased investment.
The consortium will also have the opportunity and is incentivised to deliver new products and value-added services to customers to help fund and deliver improved systems and customer service.
Will fees increase as a result of this joint venture?
No. The Government will maintain responsibility for setting of State regulated fees related to registering and licensing vehicles, and driver licences. Government maintaining regulatory oversight of fees and processes is central to the joint venture.
How will the joint venture take into account future trends such as autonomous vehicles?
A key priority for the Government in entering a joint venture partnership has been to seek an innovative partner to provide the adaptability and future proofing capabilities to address future challenges and opportunities.
The Consortium has extensive experience partnering with governments and organisations to deliver modernised and efficient services. Together they have invested in land registries across Australia and have deep experience investing in infrastructure assets, providing a unique ability to leverage existing knowledge and expertise to ensure a successful transition of VicRoads into the JV.
Has there been engagement with staff?
Absolutely. We value the views and feedback of staff.
Following extensive consultation with affected staff and unions in 2021, the Government developed a future state operating model to support the implementation of the joint venture approach for the Project (including the allocation of relevant functions between the State (Department of Transport (DOT) and the JV). On 1 January 2023, DoT was renamed the Department of Transport and Planning.
The State and VicRoads consulted, and continue to consult, with affected staff and unions, in accordance with EA9 and the VPS Agreement (as applicable), in relation to the Project. In addition to this formal consultation, the State and VicRoads have also conducted, and continue to conduct, briefings / discussions with affected staff and unions in relation to the Project. The VicRoads Modernisation Program leadership team have conducted over 150 briefing sessions with affected staff and unions to ensure that all parties are well informed of the Project.
Leading up to this major milestone, VicRoads and Department of Transport employees and their representatives, stakeholders and industry partners have been actively engaged on the proposed joint venture and will continue to be engaged at every stage of the development.
The Government is also pleased to confirm that all ongoing employees currently involved in the delivery of R&L and CP services will have the opportunity to continue in a position in relation to the provision of those services either with the joint venture or the State, on terms and conditions of employment that are no less favourable overall. Employees transferring to the JV will also receive a range of additional incentives / protections.
To date, upwards of 91% of employees matched to roles in the Joint Venture have already commenced or have accepted offers of employment and will soon commence, with the Joint Venture.
Agreement has been reached with each of the Australian Services Union and the Community and Public Sector Union on the key terms and conditions which will support affected employees.
How much has been made from this initiative?
Our focus has been on finding the right partner with the expertise and service delivery capability to upgrade IT systems and reinvigorate the customer experience for Victorian motorists.
The partnership follows an extensive and robust market engagement process and will generate $7.9 billion to establish the Victorian Future Fund to manage the fiscal impact of the pandemic and deliver positive outcomes for Victorians, by reducing the debt burden on future generations.
The key driver for this initiative is service improvement, not revenue.
What will the proceeds of a joint venture go towards?
The proceeds will establish the Victorian Future Fund to manage the fiscal impact of the pandemic and deliver positive outcomes for Victorians, by reducing the debt burden on future generations.
What will happen to Custom Plates?
Custom Plates are included in the joint venture partnership and will continue to be offered to Victorians.
How many custom plates are made/purchased each year? What is the overall annual revenue of custom plates?
In an average year, more than over 200,000 custom plates are issued across Victoria, generating revenue in excess of $50 million.
I have custom plates, what does this joint venture mean for me?
If you already own custom plates, there are no changes for you relating to those plates.
I am thinking of purchasing custom plates in the future, what does the joint venture mean for me?
There will be no changes to the operation or issue of custom plates in the short term.
Does the joint venture affect the value of my unique personalised plates?
As it does now, Custom Plates will continue to list prices for new custom and special interest plates.
I am a supplier of goods and services to VicRoads, what does this mean for me?
Our relationships with our suppliers and partners are integral to continuing our high-quality service. There will be no change to existing arrangements, which will continue. Where required, some contracts have been transferred to the joint venture company.
Does this mean I will have to go to a private provider for my driving test / to get my trailer registered? Can I still go to the local VicRoads?
Yes, you can still go to your local VicRoads office which will look the same and there are no immediate changes to the way you access services.
What will happen with online learners’ tests?
The online learners and hazard perception tests are currently available. Customers can register online using their myVicRoads account.