Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Settlement Cuts Incis Cost To $82.5 Million

Rt Hon Sir William Birch

Minister of Finance
26 October 1999

SETTLEMENT CUTS INCIS COST TO $82.5 MILLION

'70% Delivered for 70% of the Budget'

The INCIS settlement between the Crown and IBM now permitted publication, for the first time, of a transparent account of the costs of the project in relation to the benefits achieved by Police, Finance Minister Sir William Birch said today.

He said the figures showed that the cost of the project and the benefit received for the money had both been profoundly misunderstood by most critics, and the general public had, as a result, been misled on both the costs and the benefits.

"The original project budget for INCIS was $98m. That project budget was extended, in 1998, to $119m. The total cost of INCIS to 1 October 1999 has been $107.5m. Of that sum, $70.4m has been spent with IBM," he said.

"The great proportion of the total cost of INCIS relates to a $65m update to the Police technology platform. This update would have been necessary in any event whether or not the Police had ever commissioned INCIS," Sir William said.

"This new technology platform comprises 2000 PCs, 1084 laptops, 452 printers, 400 servers, a mainframe, local area networks and a nation-wide network. This system has already been rolled out and is in use by Police now.

"By contrast, the cost of application software and software development was, in total, only $18.7m. The costs of application development up to and including INCIS Increment 1 represent only $12.9m of that sum.

"INCIS software is, and always has been, a relatively minor component in the total cost of the project," Sir William said.

"Furthermore, the $25m settlement which IBM has agreed to pay the Crown now reduces the $107.5m total cost to $82.5m.

"That figure of $82.5m represents around 70% of the total $119m project budget, and about 70% of the INCIS project has been delivered in return for that payment," Sir William said.

"That is not the impression which had previously been conveyed to the general public by critics of the project. I hope the availability of these figures will clear away some of the irresponsible myths developed around the INCIS project.

"In any large investment, there are always lessons that can be learned and improvements that can be made," Sir William said.

"The Prime Minister, on 16 August this year, announced her intention to hold an inquiry into the lessons that could be learned from the INCIS project.

"This will allow a more objective analysis of the role of the State sector agencies than that which emerged from the Justice and Law Reform Select Committee's report.

"The resolution of the dispute with IBM is an important step forward. The way is now clear for the Crown to make decisions next year about the best route to take in the future development of Police computing," Sir William said.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On Who Decides On The Priority List For Vaccines

During the past week, the nation has gone through a range of mixed feelings about south Auckland. Understandably, there’s been a hankering in some quarters to punish a few of the rule breakers who plunged all of Auckland back into lockdown…Yet alongside that impulse there also been compassion for the way that poverty and overcrowding make south Aucklanders extremely vulnerable to the spread of the virus... More>>


 




Government: PHARMAC Review Announced

The Government is following through on an election promise to conduct an independent review into PHARMAC, Prime Minister Jacinda Ardern and Health Minister Andrew Little announced today... More>>

ALSO:


Government: Main Benefits To Increase In Line With Wages

All measures of child poverty were trending downwards, prior to the COVID-19 lockdown, across the two years since year ended June 2018, Stats NZ said today. The COVID-19 lockdown in late March 2020 affected Stats NZ’s ability to collect data from households ... More>>

Government: Reserve Bank To Take Account Of Housing In Decision Making

The Reserve Bank is now required to consider the impact on housing when making monetary and financial policy decisions, Grant Robertson announced today. Changes have been made to the Bank’s Monetary Policy Committee’s remit requiring it to take into ... More>>

ALSO:


Covid-19: Auckland Back To Alert Level Three After One New Community Case Revealed

Auckland will move to alert level three for a week at 6am tomorrow morning after two new Covid-19 community cases announced this evening could not be directly linked to earlier cases, the Prime Minister has confirmed.
The rest of the country will move to level two.... More>>

NZ Initiative: New Report Highlights How Our Housing Crisis Could Worsen If We Don’t Act Now

If New Zealand politicians thought the housing crisis in 2020 was bad, the worst is yet to come, warns a new report by The New Zealand Initiative. In The Need to Build: The demographic drivers of housing demand , Research Assistant Leonard Hong ... More>>

Parliament: Kiwi MPs Among The “Most Educated In The World”

New analysis of MP qualifications reveals New Zealand’s Parliament is one of the most educated and highest qualified in the world, and significantly more educated than Australia’s. The research, by Mark Blackham of BlacklandPR and Geoffrey Miller ... More>>

The Dig: An Illogical Ideological Struggle

Dig beneath all the trade wars and the arguments to the effect that the USA should not permit China to achieve economic and technological superiority, or even parity, and you find the real reason behind the conflict... More>>

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels