‘Nightmare case study’: BOM lashed at Senate estimates
Environment Minister Murray Watt has come under fire over the botched website upgrade, while the new BOM boss blamed Covid and inflation for the extraordinary cost blowouts.
The Bureau of Meteorology’s bungled $96m website upgrade has been labelled a “nightmare case study in contract failure”, as the new BOM boss blamed Covid and inflation for the extraordinary cost blowouts.
Environment Minister Murray Watt said the upgrade “may well be a contract that demonstrates the need for greater oversight of consultants and greater use of public sector capacity wherever possible”.
New BOM chief executive Stuart Minchin fronted up to Senate estimates on Monday evening amid public anger about the botched $96m website upgrade, parts of which had to be rolled back because of complaints about functionality.
Dr Minchin said the website upgrade – and the broader technology upgrade of the BOM – faced cost blowouts because of unexpected hurdles.
“The program was delivered throughout the extended Covid-19 pandemic, which impacted key labour markets, and also during a period of beyond forecast inflation, which particularly impacted technology costs,” he said.
“Accordingly, the Robust Program ultimately closed on 25 July 2024, having materially met over 90 per cent of its intended outcomes.
“Total expenditure was $866m.
“The $78m difference between the original budget and the final amount was funded out of departmental funding and in line with budget process operational rules.”
Greens senator Barbara Pocock slammed Environment Minister Murray Watt and the BOM, saying this was a “nightmare case study in contract failure, in management of contracts, failure of leadership, and completely unacceptable and unethical behaviour by the very big consultants who have been at the trough through BOM”.
“And I think of the land and expand strategies that I believe are very evident, the panels for selection of contractors which are dominated by the big five, the predatory billing, the failure to give value for money, the absence of penalty clauses when things fall over, and the kind of path dependency which those big consulting firms mine at the great cost to the Australian taxpayer,” she said.
Senator Watt said the broader BOM technology upgrade was “always going to cost a significant amount”.
He said “all government agencies, whether it be the BOM or anyone else, need to spend taxpayers money wisely” and that there were “some questions about how this project has been managed”.
However, he shifted blame to the previous Morrison government and the previous BOM management.
“Many of them predate Dr Minchin’s arrival, many of his team, this government,” he said.
“The benefits that consulting firms have generated from these types of contracts … our government has expressed a lot of concern about that. It’s trying to turn that around.
“And this may well be a contract that demonstrates the need for greater oversight of consultants and greater use of public sector capacity wherever possible.”
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