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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2012-11-28 Daily Xml
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SHARED SERVICES SA

177 Mrs REDMOND (Heysen—Leader of the Opposition) (17 July 2012). In relation to the $10.5 million estimated to implement tranche 4 of Shared Services (2010-11 Auditor-General's report Part A, p. 12)—

(a) How much of this has been spent, and what is the breakdown of this expenditure by wages, office rent, equipment, etc;

(b) is this implementation expenditure funded by individual agencies or Shared Services;

(c) what is the revised budget for implementation now that it is non-compulsory for departments and agencies to opt in to Tranche 4;

(d) which departments and agencies to date have opted in to Tranche 4, and which have indicated they will opt in to Tranche 4 in the future; and

(e) which departments and agencies transferred their IT functions to Shared Services SA as part of Tranche 4 when it was compulsory to do so but reversed this transfer when it became non-compulsory and in each case, how much was spent transferring these functions and subsequently reversing the transfer?

The Hon. M.F. O'BRIEN (Napier—Minister for Finance, Minister for the Public Sector):

(a) Up to 30 June 2012 $2.443 million was spent on Tranche 4 activities, made up of $2,163,652 for employee expenses, $43,040 for accommodation and service costs, $180,967 for general administration costs and $56,203 for IT expenses.

(b) This expenditure was funded by Shared Services SA, not by agencies.

(c) It is not compulsory for agencies to opt in. As reported on page 38 of the 2011-12 Mid Year Budget Review, the implementation budget was reduced by $6.3 million, leaving $4.2 million.

(d) As part of the machinery of government changes announced in 2011, ICT infrastructure support services currently provided by the Corporate Services division in the Department of the Premier and Cabinet will transition to Shared Services SA and the partial ICT infrastructure support service previously delivered to the Department for Water will transition to the Department of Environment Water and Natural Resources.

(e) The government decided not to proceed with Tranche 4 before any agencies were compulsorily transferred. Prior to the 2011 machinery of government changes, some ICT infrastructure support services for the Department of Treasury and Finance were delivered through Shared Services SA. This structure was put in place in readiness for the then proposed Tranche 4 transition. As Tranche 4 did not proceed, the ICT infrastructure support function for DTF did not shift with Shared Services SA to DPC. Separate costs were not recorded for this activity, they are part of the costs referred to in part (a) of this question.

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