VERSION 1 AGIMO 02 ESTIMATES BRIEF - Hot Issue Senate Standing Committee on Finance and Public Administration Supplementary Budget Estimates – October 2011 GOVERNMENT RESPONSE TO THE INDEPENDENT REVIEW OF THE ICT REFORM PROGRAM (REINECKE) Issue: The Government’s response to Dr Reinecke’s Independent Review of the ICT Reform Program. Key Facts: • Dr Ian Reinecke’s report on the ICT reform program 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 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 the next ten to fifteen years through a coordinated approach to data centres, and • Further savings of some $70 million from coordinated ICT procurements in software, desktops and telecommunications. • The Government is considering Dr Reinecke’s findings and will respond to his report in due course. 1 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 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 Minister and Cabinet, the New South Wales (NSW) Department of Premier and Cabinet, and the NSW Department of Commerce. 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 Special Minister of State, the Hon. Gary Gray AO MP, had said the report ‘was being “actively dealt” with by the Government’ (Attachment A). Date: Cleared by (SES): Group/Branch: Contact Officer: Telephone No: Consultation: 23 September 2011 Ann Steward, Deputy Secretary AGIMO/Policy and Planning Division Scott Wallace 6215 1581 Nil 2