Thursday 27 November 2008

Cost Control?

Cost Control?Poor old Stephen Timms (Treasury minister) is having a rather rough week this week, having first signed off on the secret VAT increase he now has been forced to admit to parliament that HMRC has no accurate cost estimates over the 25 major IT projects that they are running.

Best guess estimates are that these projects are costing the taxpayer at least £197M, small money compared with the billions that the government has risked on bailing out various banks etc.

In a parliamentary written answer Timms said:

"Many of our IT projects are at an early stage in their development lifecycle, and detailed technical solutions and IT supplier costs are yet to be established.

The figures shown below are therefore estimates and remain subject to revision, finalisation and formal investment approval
."

That's all very well, but other departments have managed to provide more accurate estimates for their IT projects, and the private sector obtains cost estimates and project specifications before going ahead with projects.

Why can't HMRC?

Tax does have to be taxing.

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

1 comment:

  1. Err. Is this not just the standard politician's disclaimer? You quote Timms as having said "the figures are ... estimates", and then you compare this to the private sector where "estimates" are obtained. And of course, private sector projects NEVER end up late nor over-budget, do they?

    Also, he's talking about projects at an early stage. By the time you start putting a project out to tender (i.e. getting cost estimates and agreeing specifications) the project has started. You've probably already spent time and money doing feasibility studies, etc.

    Much as I hate to defend a politician, I think you're clutching at straws with this one, Ken.

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