[LINK] Gillard raids 'Gershon' IT fund
brd at iimetro.com.au
Thu Aug 5 11:57:29 EST 2010
Gillard raids 'Gershon' IT fund
From: Australian IT
August 04, 2010 6:25PM
JuliaA Gillard will raid $448 million to help pay for election
commitments from a savings scheme earmarked for IT projects.
Labor said it would save more than $1 billion over four years from a
bold plan to drive efficiencies in public sector ICT procurement and
British efficiency expert Peter Gershon was engaged in 2008 to spearhead
the program. Following his recommendation, more than half of the money
saved was funnelled into an IT business-as-usual reinvestment fund.
The Prime Minister will divert $447.5m of the money being set aside over
the four years to help meet Labor's commitment to returning the budget
The balance of the fund, around $557m, will be used as expected; Labor
will not renege on its budget pledge giving 20 agencies funding for 44
In 2009 -10, $54.6m from the Gershon reinvestment fund was spent on 12
If Labor wins on August 21, departments will have to bid for funds -- as
part of next year's budget process -- for proposed IT projects.
"The Gillard Labor government will remove funding currently quarantined
under the Gershon reforms for ICT spending across government (of)
$447.5m over four years," an ALP campaign spokeswoman said.
"Labor sees ICT as vital in promoting the sharing of common service
delivery platforms and business processes. Our reforms have increased
efficiency in procurement and delivered more than $1bn in savings.
"Departments will now have to bid in the budget process for additional
resources to fund ICT spending to ensure it is properly scrutinised
against other government priorities."
The Secretaries Committee on ICT to promote whole-of-government
initiatives will be retained.
Ovum public sector IT research director Kevin Noonan said the news was
disappointing for agencies.
"It was a known pool of funding that encouraged agencies to develop
better business cases for initiatives that had a strategic or
whole-of-government payback," Mr Noonan said.
"The problem now is that agencies will have to find offsetting savings
as well as coming up with a good business case."
email: brd at iimetro.com.au
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