The NSW government has rejected a report that thousands of public service jobs are to be axed.
The Sydney Morning Herald has reported on a secret review on outsourcing state government services, including up to 2000 jobs in Roads and Maritime Services.
But Roads Minister Duncan Gay says it's an out-of-date draft and reforms have already been made.
"It's something that's already happened," Mr Gay told ABC radio on Friday.
According to the Sydney Morning Herald, in 2013 the state government had the independent pricing regulator IPART review the planning, delivering and maintenance of all public infrastructure to see what jobs could be outsourced.
The newspaper is reporting that a recommendation is that fulltime staff should be cut at the Roads and Maritime Services
In a statement issued on Friday, Mr Gay said outsourcing road maintenance has given the government a bigger bang for its buck.
Around 700 staff will be affected by road maintenance contestability in Sydney, Mr Gay said, with staff transferred to the private sector, redeployed or offered voluntary redundancy.
He said the Roads and Maritime Services has delivered a record $5.1 billion budget this financial year.
Shadow Treasurer Michael Daley is not so sure: "Barry O'Farrell last year spent over $100 million on consultants and that's because when he sacks people, he hires them back at three times the rate. It's bad for business in NSW and it's a false economy - the Liberals are obsessed with sacking people," he told Macquarie Radio.