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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2012-03-29 Daily Xml
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HEALTH, ORACLE CORPORATE SYSTEM

Mr HAMILTON-SMITH (Waite) (14:31): My question is to the Minister for Health and Ageing. Are the financial management problems evident within his portfolio a result of his decision not to take a business case to cabinet for the Oracle Corporate Systems project, his incorrect costing of the project when he sought cabinet approval in 2009, and what the Auditor-General has described as 'inadequate management attention to the new IT system during its introduction into his portfolio'?

The Auditor-General, in his 18 October 2011 report, has been critical of the minister for not including a cost-benefit study in his original cabinet submission and for misinforming cabinet on the costs of the Oracle project. Yesterday the minister said problems with the system had resulted in a delayed and qualified audit report and criticisms by the Auditor about control deficiencies, inadequate management, an inability to trace transactions, control of revenue and fees and charges, receivables and cash, and an inability to obtain data on staff benefit expenses, supplies and services and payables were linked to the project. The auditor says the new system has been—

Members interjecting:

The SPEAKER: Order! Point of order.

The Hon. P.F. CONLON: Point of order: he plainly has enough information to understand the question.

Members interjecting:

The SPEAKER: Order! And we can read the Auditor-General's Report. Minister.

The Hon. J.D. HILL (Kaurna—Minister for Health and Ageing, Minister for Mental Health and Substance Abuse, Minister for the Arts) (14:33): The member has asked this or a similar question on previous occasions, which I have addressed. I also tabled a statement yesterday which dealt with some of these issues. Cabinet was properly informed about the process we were going through in relation to Oracle. Oracle is a system which is used by most, if not all, government agencies other than health. It is pretty well rolled out right across South Australian government agencies. It is a system that is used in other jurisdictions. It is a well-known competent system.

We needed to replace the financial management systems—the tools that we had in the health system—because they were obsolete and could no longer provide the kind of information, or the system that was in place. The legitimate criticism that the Auditor-General raises is one of implementation and I think it is fair to say—and I made the comment yesterday—that health—

Mrs Redmond interjecting:

The Hon. J.D. HILL: I reject that criticism, Leader of the Opposition.

Members interjecting:

The SPEAKER: Order!

The Hon. J.D. HILL: As I have said before, the Auditor-General is a human being; he has his views and I have my views.

Members interjecting:

The SPEAKER: Order!

The Hon. J.D. HILL: I have lost my train of thought. The legitimate criticism I think that is made is that the implementation of the new system did not properly take into account the need for training and change in staff procedures, and that is now being implemented. I am very confident that we have got the mechanism right to install and introduce this system, and that there will be huge benefits that flow to the system because we will be able, for the very first time, to have a very controlled financial environment.

Members interjecting:

The SPEAKER: Order!

The Hon. J.D. HILL: Madam Speaker, I think I have provided sufficient information.

Members interjecting:

The SPEAKER: Order! The member for Port Adelaide.

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