Roads millions go down the drain

Feb 4 2008 by William Green, The Journal

THE Department for Transport is under renewed fire for failing to fund crucial North-East road upgrades after it emerged its IT programme is set to over-run by £107m.

Ministers at the Department for Transport (DfT) have consistently refused to support upgrades to the congested A1 Western Bypass or fully dual the A1 through Northumberland to boost safety and prosperity.

And now that decision is under renewed attack as the department and its agencies’ IT projects could over-run by an estimated £107.23m and end up being severely delayed.

The overall programme was supposed to cost £416.82m but is set to rise to £524.05m, according to DfT figures released to Liberal Democrat Treasury spokesman Vince Cable in a Parliamentary written answer.

Mr Cable yesterday pointed to how a scheme to overhaul computer systems has soared from £31m to an estimated £123m.

He said the programme was centralising many human resource and finance functions from seven DfT agencies and the department into a shared service centre in Swansea.

The DfT has said the so-called “shared services” programme began in April 2005 and is due to be completed on schedule by April 2009.

A project to provide handheld information devices for staff at a DfT agency charged with carrying out roadside spot-checks on lorries has also risen in cost and its rollout been delayed.

The scheme at the Vehicle and Operator Service Agency (VOSA) has soared from £7.91m to £10.8m after starting in March 2003 with a finish date of December 2004, although that has been pushed back to March this year.

The DfT has blamed the cost increase and delays on the original price not having including staff costs and on the project scope being widened.

The cost of a VOSA project, which began in January 2004, allowing lorry and bus operators to book annual vehicle tests online has risen from £8.4m to £16.8m. The completion date has gone from December 2005 to January 2009, although the DfT said the scheme’s scope has increased.

Mr Cable said: “These figures confirm the mess government technology projects are in. The money wasted is enough to fund the full police pay increase three times over.

“Given the Government’s appalling track record on computer projects, it is essential that a full investigation is launched into this and other overruns.”

He added: “Gordon Brown is living in a dream world if he thinks larger IT projects like ID cards are going to be any different.”

Hexham MP Peter Atkinson and Berwick’s Alan Beith also hit out at the revelations, adding the money would have been better spent upgrading the A1.

Andrew Sugden, policy director at the North East Chamber of Commerce, said: “Here in the North-East we are consistently being told that budgetary constraints are a key factor in the Western Bypass and other strategic infrastructure improvements not happening. This raises the question whether the DfT has got its priorities in the right place.”

Dave Anderson, Labour MP for Blaydon, said: “IT is becoming a real issue for our Government and we have got to get a grip on it. If this turns out to be true, it would be money much better spent upgrading the A1.”

A DfT spokeswoman said the department and its agencies were providing high quality and often pioneering IT services with customers demonstrating strong satisfaction, as well as improving efficiency of its operations.

“A recent National Audit Office report highlighted the achievements of the department, which has taken the lead across Government in providing many and necessary services online.

“This report also highlighted the £33m expected saving that came with this.

“The Shared Services Transformation Programme is a long-term commitment to streamline and transform the way we work. The programme has already delivered its first major milestone – in April 2007 – with the opening of the shared service centre in Swansea,” she added.

Page 2: Transport change hands councils a funding headache