The Government of Newfoundland & Labrador operates a number of registries, all of which are governed by legislation designed to protect the public.

In 2019-20, our province received $91 million in revenue from vehicle registrations and drivers’ licenses and $70 million from the registration of deeds, companies, and securities.

Licensing and Registration

Motor Vehicle Registration is responsible for testing individuals and commercial drivers. It issues and renews drivers’ permits, licenses, and official government photo IDs. It also registers and renews vehicle registrations, license plates, etc.

The Registry of Deeds, Companies and Securities has the largest database of government registrations in our province, with records dating back to the early 1800s. Lawyers, surveyors, and title search firms regularly use this registry to protect their clients’ rights. It also registers all limited liability companies operating in the province. Registered companies are required by legislation to file documents to notify the Registrar and the public about any changes. Currently there are approximately 50,000 companies registered – approximately 25,000 of them are active.

We could have learned from others – for free

Ontario, Alberta, Saskatchewan, and Manitoba have privatized some or all of their motor vehicle and land registries. Even in deals where provinces received cash up front, they continuously lose revenue each and every year.

In fact, after conducting a 17-month, $825,000 review of privatizing three of its public registries, the Government of Nova Scotia decided not to privatize its registries because the revenue gains from outsourcing would be marginal at best.

Yet in mid-December 2021, the Government of Newfoundland and Labrador announced it had retained Rothschild & Co. to review a number of public assets – including the registries. Rothschild & Co. stands to make upwards of $5 million for its efforts.

Moya Greene, who has a long track record of privatizing public services, was appointed to chair the Premier’s Economic Recovery Team (PERT). Now, in the wake of the PERT report, our government has selected a firm that, for decades, has been an advisor to governments worldwide on privatization.

To add insult to injury, our Finance Minister, Siobhan Coady, ‘wouldn’t confirm the report would be made public, due to the potential presence of ‘commercially sensitive information.’”

Ontario

In 2003, a subsidiary of UK-based multi-national Serco was awarded a ten-year contract to handle driver licensing and testing (a service known as DriveTest in Ontario). It shared in $800 million in revenue over the life of the contract – money that left the province of Ontario – and, in fact, Canada. What was Ontario left with? Fewer jobs with lower pay and no benefits – many of them part-time.

A government review in 2014 found that Serco was failing to properly road test tractor-trailer drivers. The failures were detected at Ontario’s largest commercial truck testing centre in Woodbridge, north of Toronto, where students attempt to earn their AZ licence to become tractor-trailer drivers.

The review, ordered by Transportation Minister Steven Del Duca, came in response to an ongoing Toronto Star investigation that found truck drivers were earning their licences at the Woodbridge DriveTest location without being taken on a 400-series expressway, despite the exam centre’s close proximity to Highways 427 and 407.

The report found that three test routes used by Serco did not comply with ministry requirements that learners be tested on roads with a minimum speed limit of 80 km/h. The report, which says the Ministry became aware of the issue in September 2014, does not specify how long the incorrect road test routes had been used.

And yet in 2013 a consortium of Plenary Group and Serco, two multi-nationals, was given a further ten-year contract to operate DriveTest.

Manitoba

In 2014, Teranet negotiated a 30-year deal with the Government of Manitoba. It involved an upfront payment of $75 million together with annual royalties starting at an estimated $11 million per year, growing to an estimated $24 million by end of term (in 30 years’ time).

British Columbia

BC has a hybrid, semi-privatized model where the land title and survey authority operates as a statutory corporation.

Nova Scotia

After a 17-month review that cost $825,000, Nova Scotia decided not to privatize its land registry stating that the revenue gains from outsourcing would be marginal at best. Government had faced negative feedback from surveyors and realtors who were concerned about increased fees.