Tanner tips $1bn ICT savings back into Budget

James Riley
Friday, 06 November 2009 06:47

IT Policy - Government Tech Policy

The Department of Finance has completed its stage two calculation of Gershon-inspired ICT savings and reckons more than $1 billion can be returned to the Budget over the next four years.

Finance Minister Lindsay Tanner says the savings come directly from streamlining "business as usual" activities and that the Australian Government Information Management Office (AGIMO) had identified $430 in savings between 2010-11 and 2012-13.

He said those savings were in addition to the $570 million identified in stage one of the program announced in April.

"In his independent review of the Government’s use of ICT, Sir Peter Gershon noted that savings of around $1 billion could be achieved over four years by reducing agencies’ business as usual ICT costs," Lindsay Tanner said.

"The completion of the second phase of this program means the savings foreshadowed by Sir Peter Gershon have now been realised."

"AGIMO has been assisting agencies to reduce their ICT business as usual costs by up to 15 per cent annually. Importantly, these cost reductions have not come from cutting service delivery capability, but from more efficient use of ICT."

Mr Tanner said Government stood by its commitment to re-invest 50 per cent of the Gershon savings into ICT-based productivity programs for the Commonwealth. The department is currently considering the project applications from departments seeking funding through the BAU savings program.

"Agencies are now looking at how they can make further efficiency improvements and have already begun putting forward proposals to utilise funds from the savings pool. I expect to be able to announce the first group of projects in the coming months," Mr Tanner said.