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Fahey finally admits IT outsourcing in disarray.

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Fahey Finally Admits IT Outsourcing In Disarray Kate Lundy - Shadow Minister Assisting on Information Technology

Media Statement - 7 November 2000

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The Minister for Finance has finally admitted that his IT Outsourcing Program is a debacle by calling for an independent review of the Whole of Government IT Outsourcing Initiative, Senator Kate Lundy said today.

"Labor's call for a halt to the Coalition's IT Outsourcing Initiative has now been vindicated," Senator Lundy said.

"The recently released ANAO Report and the OASITO annual report highlighted the major flaws in the IT Outsourcing Initiative, including massive payments to consultants, failure to achieve stated savings, delays in tendering schedules and service delivery difficulties.

"John Fahey has been under pressure from the Opposition and industry groups to acknowledge that his IT Outsourcing Initiative is a shambles.

"The Minister has now been forced to formally acknowledge that there are major structural flaws in the IT Outsourcing Initiative.

"This Review is long overdue, given that the Coalition's IT Outsourcing Initiative has been embroiled in controversy from the very beginning.

"It is very disappointing, however, that despite Mr Fahey's acknowledgment that a review is needed, he is still allowing the Group 1 and Group 11 tenders to continue.

"Mr Fahey should stop these tender processes from continuing in order to prevent further damage to Australia's IT management capability and government service delivery.

"I call on Minister Fahey to make this Review a public inquiry, given the importance and interest in IT outsourcing.

"It is essential that the views of Commonwealth Agencies and Departments involved in IT outsourcing are made public as they have borne the brunt of Mr Fahey's ham-fisted management. Up until now they have been gagged," Senator Lundy said.

Authorised by Geoff Walsh, 19 National Circuit, Barton ACT 2600.