Tuesday, 14 February 2012

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.

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