SUBJECT: GOVERNMENT RESPONSE TO THE INDEPENDENT REVIEW OF THE ICT REFORM

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AGIMO 02

ESTIMATES BRIEF - Hot Issue

Senate Standing Committee on Finance and Public Administration

Additional Estimates – February 2011

SUBJECT: GOVERNMENT RESPONSE TO THE

INDEPENDENT REVIEW OF THE ICT REFORM

PROGRAM (REINECKE) AND A STRATEGIC

VISION FOR THE GOVERNMENT'S USE OF ICT

Issue:

1. When will the Government respond to Dr Reinecke’s Independent

Review?

2. Does the Government have a strategic vision for the Government’s use of ICT?

Headline Statement:

• The Government is considering Dr Reinecke’s findings and will respond to his report following a careful consideration of the recommendations and an opportunity to consult with various stakeholders.

Suggested Response:

• In March 2010, the then Minister for Finance and Deregulation, the

Hon Lindsay Tanner, appointed Dr Ian Reinecke to undertake an independent assessment of work done on the ICT reform program.

Minister Tanner appointed Dr Ian Reinecke on advice from the Secretaries’

ICT Governance Board.

Dr Reinecke’s report was released on 18 November 2010.

• In his review, Dr Reinecke examined the effectiveness of the

Government’s implementation of the seven key areas of the ICT reform program and identified areas for improvement.

• Dr Reinecke also examined and made recommendations about the future role of the Australian Government Information Management Office.

Dr Ian Reinecke noted that, despite progress with the ICT reform program, there had “not been consideration of a strategic vision for ICT”.

The Government is considering Dr Reinecke’s report, and work to complete a Strategic Vision for ICT is progressing well.

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Issue:

2. Does the Government have a strategic vision for the Government’s use of ICT?

Suggested Response:

In his 2008 Review of the Australian Government’s use and management of

ICT , Sir Peter Gershon emphasised the need for Ministers to set the overall strategic vision for the Government’s use of ICT, supported by the

Secretaries’ ICT Governance Board.

In June 2010, independent reviewer Dr Ian Reinecke noted that despite progress with the ICT Reform Program, there had “not been consideration of a strategic vision for ICT”.

• Work to complete a Strategic Vision for ICT is progressing well.

The Government remains committed to the ICT Reform initiatives and to effective and efficient use of ICT by government.

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Background:

ICT Reform Program

• In April 2008, Sir Peter Gershon was engaged to lead an independent review of the

Australian Government’s use of Information and Communication Technology.

• In November 2008, the Government endorsed Sir Peter’s recommendations and initiated the ICT Reform Program.

• The ICT Reform Program implemented Sir Peter’s recommendations and strengthened

ICT governance, increased capability across Financial Management and Accountability

(FMA) Act agencies and delivered $1 billion in savings from FMA Act agencies over the period 2009-10 to 2012-13.

• In his review, Sir Peter noted that there was a need for Ministers, supported by senior officials, to define “an overall strategic vision for how ICT should support the achievement of the Government’s outcomes and the wider policy agenda”.

• Dr Ian Reinecke completed an independent review of the implementation of the ICT

Reform Program on 24 June 2010.

• The report found that Finance has made very substantial progress in implementing the recommendations of the ICT Reform Program and highlights some areas for improvement.

• Dr Reinecke reported that the focus on savings in the ICT Reform Program has overshadowed other initiatives. He recognises that the impacts of other ICT Reform recommendations are significant, though they will take some time to work their way through Government. Dr Reinecke noted that “consideration of a strategic vision for ICT” was still outstanding.

• The total cost of the review was $209,000. This comprised Dr Reinecke’s fees of

$150,000, $13,000 in travel expenses and $46,000 in secretariat support.

Dr Ian Reinecke

• Dr Reinecke has been advising governments on policies and programs associated with

ICT management since the mid-nineties. In addition to Finance, clients include the

Department of the Prime Minister and Cabinet, the New South Wales Department of

Premier and Cabinet, and the NSW Department of Commerce. Dr Reinecke’s career has included the following appointments:

− Independent adviser to the NSW Government’s ICT Review “Better Services and

Value Taskforce” since September 2009;

− Member, Government 2.0 Taskforce 2009;

− Founding Chief Executive of the National E-health Transition Authority

(NEHTA), 2004-08;

− Former Chief Information Officer of the Sydney Olympics; and

− Chair of the Queensland Government’s Information Policy Board and the

Information Industries Board.

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ICT Strategic Vision

• The last Government ICT strategy document, the 2006 e-Government Strategy,

Responsive Government, A New Service Agenda was issued by the former Howard government and is due to be replaced.

• In his 2008 review, Sir Peter Gershon emphasised the need for Ministers to set the overall strategic vision for the Government’s use of ICT, supported by the Secretaries’ ICT

Governance Board (SIGB).

• In 2010, Dr Ian Reinecke noted that the work to develop an ICT strategic vision was incomplete.

Media Coverage

• There have been several media reports on the release of the review, including reference to the need for a new government ICT strategic vision.

Date: 3 February 2011

Cleared by (SES): Glenn Archer

Group/Branch: AGIMO/Policy and Planning Division

Contact Officer:

Telephone No:

Consultation:

Scott Wallace

6215 1581

Nil

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