Too Much

Granny reports:

Prime Minister John Key said that modernising the IRD computer system as part of an efficiency drive in the public service could cost up to $1 billion. Prime Minister John Key said that modernising the IRD computer system as part of an efficiency drive in the public service could cost up to $1 billion.

A billion dollars?  On a computer system?  That's ridiculous.

Why is it ridiculous?

•          The IRD collects about $50 billion in tax annually, so the estimated cost is 2% of the amount collected in a year.  Sure, the system might last 20 years, even then it's contributing 10c to the cost of collecting every $100.
•          And that's assuming it works.  The largest IT project undertaken by any government department was the INCIS project.  INCIS was about a tenth of the cost mooted by Key, and anyone who recalls INCIS will also recall it was not seen as a particularly successful project.
•          In almost the same breath, Mr Key mentions the idea of a more efficient public service.  And that's worthy of a separate post.