The Morrison government's plans for a Centrelink mega-office should be "abandoned once and for all", says Newcastle federal MP Sharon Claydon, who has concerns they will be "revived when no-one's looking".
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The government unveiled plans to merge five offices, including the Mayfield and Newcastle service centres, into one site late last year.
An expressions of interest process was held shortly after and concluded in February.
The EOI document showed the government was seeking an 8100-square metre office in either Waratah, Georgetown, Hamilton North, Hamilton East, Broadmeadow, Newcastle West, Wickham, Maryville and Tighes Hill.
Access to public transport and parking was identified as essential. The lease was to be for 10 years, with two more five-year options, in an existing or proposed building.
The planned move triggered a flurry of interest from local developers with the city's existing office spaces considered unsuitable for the stated requirements.
The Newcastle Herald understands at least half a dozen EOIs were lodged but the government is yet to advance the proposals. One source said the government had "shelved" the consolidation plan during the coronavirus.
Ms Claydon spoke about the planned mega-office in parliament last week, acknowledging the 3458 people who had signed a petition calling for it to be scrapped.
She said the government had been planning to consolidate offices in other areas around the country but had appeared to have stalled some of those plans this year.
"It may well be that this government is starting to see the error of its ways after seeing the disastrous impacts of its ongoing campaign to hollow out public services," she said.
"We've already seen them postpone some of their plans to shut down offices, Abbotsford Centrelink in Melbourne, for example. But it's not enough.
"I will not allow this issue to be swept under the rug, ready to be revived when no-one's looking. This plan must be abandoned once and for all. We are heading into the deepest recession we have seen in almost a century, and Australians need to know that Centrelink will be there for them when they need it."
Services Australia, formerly known as the Department of Human Services, would not reveal the plan's status when contacted on Monday.
"Further details about the approach to market and proposed timeline are commercial-in-confidence and cannot be released at this time," a spokesperson said.
"The proposed consolidation includes a continuation of face-to-face services delivered to Newcastle residents, providing Medicare and Centrelink services in the same location.
"The agency will inform the community in a number of ways before these changes happen, including local advertising and engaging with community stakeholders."
The government has previously said the existing tenancies would be consolidated into a single building from 2022. Department of Human Services general manager Hank Jongen said last year "no departmental jobs" would be lost in the move.
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