SMOS QUESTION TIME BRIEF
QTB ref #: AGIMO02
GOVERNMENT RESPONSE TO THE INDEPENDENT
REVIEW OF THE ICT REFORM PROGRAM (REINECKE)
ISSUE
The Government’s consideration of the independent (Reinecke) review
of the Australian Government’s ICT Reform Program.
QUESTION 1
When will the Government respond to Dr Reinecke’s Independent
Review?
TALKING POINTS – MAY INCLUDE COMMENTS BY ADVISER
Headline Statement
•
The Government is considering Dr Reinecke’s findings and will
respond to his report following full consideration of the
recommendations.
Key Talking Points – MAY INCLUDE COMMENTS BY ADVISER
• 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 noted the Government’s ICT Reform Program has
largely been delivered.
• The ICT Reform Program achieved improvements in ICT
operational efficiency including $1 billion in savings from agency
ICT business as usual operations, avoidance of $1 billion in costs
over ten to 15 years through a coordinated approach to data
centres, and further savings of some 70 million from coordinated
ICT procurements in software, desktops and telecommunications.
Portfolio Area: Finance
Adviser: Alice
Contact officer and telephone number: Scott W allace 6215 1581
Division: Policy and Planning
Departmental content cleared by: Glenn Archer
Date last updated: 15/08/2011
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SMOS QUESTION TIME BRIEF
• Dr Reinecke also examined and made recommendations about the
future role of the Australian Government Information Management
Office.
• The Government is considering Dr Reinecke’s report.
Portfolio Area: Finance
Adviser: Alice
Contact officer and telephone number: Scott W allace 6215 1581
Division: Policy and Planning
Departmental content cleared by: Glenn Archer
Date last updated: 15/08/2011
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SMOS QUESTION TIME BRIEF
BACKGROUND
Departmental Information
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
Government’s decision included an independent review of
progress of the ICT Reform Program in the first quarter of 2010.
• Dr Reinecke delivered the report of his independent review of the
ICT Reform Program to the then Minister for Finance and
Deregulation on 24 June 2010.
• The report finds that Finance has made very substantial progress
in implementing the recommendations of the ICT Reform Program
and includes several areas for improvement.
• Dr Reinecke reports 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.
• 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 government on policies and
programs associated with ICT management since the mid-nineties.
In addition to Finance, clients include the Department of the Prime
Portfolio Area: Finance
Adviser: Alice
Contact officer and telephone number: Scott W allace 6215 1581
Division: Policy and Planning
Departmental content cleared by: Glenn Archer
Date last updated: 15/08/2011
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SMOS QUESTION TIME BRIEF
Minister and Cabinet, the New South Wales (NSW) Department of
Premier and Cabinet, and the NSW Department of Commerce.
Political No further information.
Media Coverage
•
On 10 August 2011, the online journal itnews reported that the
Government had ‘still not formulated a response’ to the Reinecke
report and that the SMOS had said the report ‘was being “actively
dealt” with by the Government’. (Attachment A)
Portfolio Area: Finance
Adviser: Alice
Contact officer and telephone number: Scott W allace 6215 1581
Division: Policy and Planning
Departmental content cleared by: Glenn Archer
Date last updated: 15/08/2011
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SMOS QUESTION TIME BRIEF
Attachment A
Government yet to respond to Reinecke IT review
Source: itnews: 10 August 2011
http://www.itnews.com.au/News/266312,government-yet-to-respond-to-reinecke-itreview.aspx?utm_source=twitterfeed&utm_medium=twitter
By John Hilvert
More than a year after receiving the report.
The Federal Government has still not formulated a response to Ian Reinecke’s report into IT spending
cuts the 2008 Gershon review, more than a year after the report was handed down.
Speaking to officials and industry representatives at the Technology in Government & Public Sector
Summit, special minister of state Gary Gray said the Reinecke report was being “actively dealt” with
by the Government.
He said it “took him a while to get on top of things in a way that gives me sufficient confidence to
make the kind of decisions that you would expect a Minister to make.”
The Gershon review recommended that the Government reduce inefficiencies in its everyday IT
activities.
Reinecke’s report revealed the havoc that confronted several agencies when required to implement
the recommendations to achieve Gershon's proposed savings.
It also recommended a clearer and more effective role for the Australian Government Information
Management Office (AGIMO).
AGIMO did not have the right mix of skills or sufficient resources to cover the full span of its
responsibilities from developing policy to supporting delivery, Reinecke found.
In response, Reinecke proposed the creation of another Government IT czar - a Chief Technology
Officer (CTO) - to work alongside the present Chief Information Officer (CIO).
Further, he urged that AGIMO be more closely integrated with the Department of Finance to provide
implementation support under the leadership of a Chief Technology Officer.
Procurement
Gray’s prepared speech to the Summit highlighted the benefits of whole of government procurement
arrangements.
He said the eight coordinated procurement arrangements in place for the supply of desktop
computers, internet connections, mobile phones and data centre facilities would increase purchasing
power.
The Microsoft software group purchase, which consolidated licensing for over 80 agencies, had saved
over $60 million since the contract was established in January 2009.
Further savings of $8.6 million were made on computer hardware costs in the first year of the desktop
hardware panel.
Portfolio Area: Finance
Adviser: Alice
Contact officer and telephone number: Scott W allace 6215 1581
Division: Policy and Planning
Departmental content cleared by: Glenn Archer
Date last updated: 15/08/2011
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SMOS QUESTION TIME BRIEF
He said the Government had been paying 56 percent more than the Australian average price for
desktop computing in the past. Now it was paying 30 percent less.
Copyright © iTnews.com.au . All rights reserved.
Portfolio Area: Finance
Adviser: Alice
Contact officer and telephone number: Scott W allace 6215 1581
Division: Policy and Planning
Departmental content cleared by: Glenn Archer
Date last updated: 15/08/2011
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