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Taxpayers could foot bill for $240m IT project blowouts

The Queensland Government has defended an IT blowout totalling almost a ­quarter of a billion dollars, saying blowouts such this were nothing new.

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THE Queensland Government has defended a $239 million IT blowout, saying blowouts such this were nothing new.

It comes after The Courier-Mail reported taxpayers could have to bankroll the IT blowout totalling almost a ­quarter of a billion dollars, with many of the State Government’s digital projects predicted to balloon over budget.

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The budgets of 55 projects across 11 departments and agencies are expected to blow out by $239,744,613.

Queensland Health’s revised costs were the largest, ballooning by $82.7 million, while Housing and Public Works ­followed with $65.4 million.

Labor MP Leeanne Enoch defended the blowout, saying there was a need to “keep pace”. Picture: AAP/Richard Waugh
Labor MP Leeanne Enoch defended the blowout, saying there was a need to “keep pace”. Picture: AAP/Richard Waugh

When questioned about the IT blowouts today, Labor MP Leeanne Enoch said that there was a need to “keep pace” with the rest of the world in regards to new technologies.

“We want to get the best possible outcome for Queenslanders and the best value ... that’s why quite often they may fluctuate down and up in budget,” she said.

Ms Enoch also stated that blowouts like this were nothing new, and were much worse under the previous Newman government.

“This is not unusual. Under the Newman government we saw some of the similar projects not just double but sometimes quadruple in price,” she said.

The figures, which were uploaded to the State Government’s publicly available ICT dashboard during November and December, have been slammed by the Opposition.

Deputy Opposition Leader Tim Mander slammed the Palaszczuk Government’s “mismanagement” of crucial IT projects. Picture: AAP/Darren England
Deputy Opposition Leader Tim Mander slammed the Palaszczuk Government’s “mismanagement” of crucial IT projects. Picture: AAP/Darren England

Deputy Leader Tim Mander said Labor did not have the “bandwidth” when it came to new IT projects.

“The hundreds of millions of dollars of taxpayers’ money the Palaszczuk Government have wasted by mismanaging these projects would have helped fast-track a second M1 or put a dent in airconditioning every public school class room,” he said.

“Many of these IT projects are now on life support with no end in sight to these cost blowouts. There is no guarantee that Labor’s blowouts won’t continue and more taxpayers’ money is poured down the drain.”

The IT projects range from Royal Brisbane and Women’s Hospital Wi-Fi to the Future of Property and Tenancy Systems, with the latter to balloon by $65.3 million alone.

Meanwhile, Queensland Health’s revised costings come off the back of a damning ­Auditor-General report last month that revealed the rollout of its digital hospital program, ieMR, could cost an additional $256 million.

What $250 million could buy if it wasn't being spent on costly IT blowouts.
What $250 million could buy if it wasn't being spent on costly IT blowouts.

A Queensland Health spokeswoman said the Government was investing in 21st-century medicine that meant better health care to more patients.

“Returning to the past would come at the cost of patient care,” she said.

“It is entirely normal and expected for large and complex ICT projects to have some cost and time variation between initial concept and planning and final implementation, which may not occur until years later.

“Final costs vary from the ­initial costs in part ­because costs increase over time and often hospitals decide to purchase more modules and equipment once they begin rolling out.”

A Government spokesman said the scope of some projects, including those started by LNP, had changed over time so that they were “fit for purpose”.

TOP 5 BLOWOUTS

The five largest projects in terms of budgetary blowouts, out of the 11 departments/agencies

Housing: Future of Property and Tenancy Systems $65,311,695

Child Safety: Child and Family Services Information and Communication Technology Program $27,140,000

Transport: Vessel Traffic Services $21,003,490

Health: Modernised Managed Operating Environment Statewide Migration $24,641,697

Treasury: State Penalties Enforcement Registry Program $14,950,000

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Original URL: https://www.couriermail.com.au/news/queensland/queensland-government/taxpayers-could-foot-bill-for-239m-it-project-blowouts/news-story/f96049f11413e10c4e87446615a2b3bc