Premier Mike Baird is under fire for not delivering for almost seven months on an "urgent" call by a minister to fix the system by which hundreds of millions of dollars worth of private property is being forcibly acquired for infrastructure projects amid increasing concerns it is unfair to homeowners.
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It has emerged Mr Baird was urged in February by finance minister Dominic Perrottet to allow cabinet to consider acting on advice about how to improve the compulsory acquisition system.
But the request has yet to be implemented, while properties are acquired across the city for the WestConnex, Sydney Metro and the CBD Light Rail, many of whose owners complain they are being offered compensation hundreds of thousands of dollars below market value.
The letter of request was released by Mr Perrottet's office on Tuesday in response to leaked documents revealing the Baird government in December rejected advice on how to make the compulsory acquisition system fairer.
Fairfax Media revealed in January that a landmark $100,000 review of compulsory acquisition laws by David Russell, SC, was handed to the government two years ago but was being kept secret.
A leaked letter reveals Mr Perrottet wrote to Mr Baird in December telling him to not act on many of the recommendations following advice from an interdepartmental committee over fears it would delay infrastructure projects.
It notes two recommendations – introduction of a plain English explanation of the process and the opportunity for a face to face meeting with land valuers – have been acted upon.
But the committee's advice "broadly indicates that the remaining recommendations are either (a) not supported or (b) would require legislation and are not a priority for implementation," Mr Perrottet told Mr Baird.
"The key concern of agencies, such as Roads and Maritime Services, is that a number of the recommendations would likely have adverse impacts including increased disputation, valuation complexity, additional costs and delay to the completion of infrastructure projects.
"On this basis, I recommend that at this time no further action be taken to address the review report."
When challenged on this during Question Time in the NSW Parliament on Tuesday, Mr Perrottet released the letter he wrote to Mr Baird on February 3, just weeks after Fairfax Media raised the issue.
He later said he had revisited the issue after "the community concern over this issue became more apparent to me".
In his second letter Mr Perrottet asked Mr Baird for permission to bring a submission containing a further government response to the Russell review to cabinet for consideration.
The minister proposes the response would be released at the same time as the Russell review.
Mr Baird is asked to "approve the urgent lodging of the cabinet submission regarding the [Russell review]".
A spokesman for Mr Baird said the government "has been formulating an appropriate response" but has been delayed by appointment of Customer Service Commissioner Mike Pratt to work with Roads and Maritime Services on its acquisition practices.
"The Russell Review, the government's response and Mr Pratt's findings are due to be released in coming weeks," he said.
The revelations come after Mr Baird issued a public mea culpa in June over his government's handling of the compulsory acquisition process.
Opposition roads spokeswoman Jodi McKay said the documents show Mr Baird "feigned sympathy when he knew he had the information that could fix the problem."
"Instead of making the lives of thousands of people easier, Mike Baird has decided to hide behind fake apologies and insincere empathy," she said.
"Mr Baird has wilfully and deliberately hidden a report while shedding crocodile tears. This is hypocrisy of the highest order."
