The plan to permit commercial driving instructors to award driving licences has no merit. Under the present scheme must satisfy a reasonably objective test conducted by someone in government pay, supervised under standard public-service conditions. Even under these conditions, and without the obvious conflict of interest in an examiner passing or failing his or her own student, there is room for corruption, as the recent NSW Independent Commission Against Corruption inquiry revealed. There was widespread evidence of driving students paying the government inspectors bribes to pass licences. How much easier that would be if the examiner actually had the final say.
There is no good economic or administrative reason for privatising licence testing. If licence testing is costing the Government money, it should just increase the fee. In matters of safety and competence, there is a need for objective government standards and testing. There are no benefits to be gained from competition or privatisation that are not grossly outweighed by the detriment of slipping standards and the potential for corruption. Audits are not enough. If people who take money from the students for lessons also determine whether the student gets a licence, they could be tempted to, on some occasions, demand extra payment for success or, in other circumstances, pass unfit students in order to portray themselves as successful testers.
Australia has achieved many benefits from competition and privatisation in the commercial arena, but it should not be an ideology to be applied in all instances. There are some activities which should remain in the public-sector. Licence testing is one of them.