Senate Rural and Regional Affairs and Transport Legislation Committee, , 1:24:24 to 1:27:31
Examination of the STEPS program and why digital and regulatory improvements have not yet fully realized anticipated reductions in the department's cost base.
Topics: Government IT systems, Export cost recovery
Speakers: Tina Hutcherson, Speaker 5, Matthew Gson, Mr. Matthew Gson, Ms. Tina Hutcherson
>> Right. Okay. Have we got an answer yet on whether or not um that that cost of the steps program will be included in the cost base?
>> Um Senator, my expectation is that it won't um in terms of the capital cost. There might be sustainment or maintenance costs um that that are potentially like when we run systems, we do include those costs in our cost baits. It's a standard operating cost of the organization. Uh but in terms of the recovery of the capital component, I
wouldn't expect so. >> But when you say wouldn't expect so, there hasn't been a decision made. >> I don't think there's been a decision made. >> Can we just check that? I mean, it's I don't think so on that, but surely. Well, because what I'm particularly interested, I suppose, in in the cost base that you've used to calculate the funding gap in the myo measures and what have you. Is this is there a capital charge associated with the steps
investment in those figures? So not for these cost recovery arrangements. The steps program um is a direct benefit to um our import arrangements. The program that I'm talking to u for exports does have sustainment when the program completes which it will at the end of this financial year. Um it has an amount of sustainment that has been provided by government. Um so we will be able to maintain that system into the future. Um
in the quiz it says that uh the cost revenue gap has also emerged because and I quote indirect costs such as workplace compliance activities and digital services has increased. Presume the digital services is what we've just
discussed isn't it? Is that right? >> Um digital services can be made up of a number of different things. So there's the specific programs um that we have that enable um the work to be done. What we refer to as our business or digital business programs. And then you have a whole lot of IT um and related costs uh that to a large degree and the and the CFO can or the CIO can speak to um digital costs and the and the cost of running digital systems. So the fact that um cloud services for example costs increase um that drive into cost recovery arrangements.
>> Okay. But why have they increased?
requirements. >> So year one year for example cloud services the cost of having all your data in the cloud will go up. So there's an increased cost um and that cost will be distributed across the department
proportionally. >> Right. Um what about the workplace compliance activities? What does that refer to?
>> Um >> uh so that relates to corporate costs. So I will um get more specific information for you about that. Senator,
>> no one has anything on that. Okay. So I'm just quoting your own report. >> Okay. >> All right. Um uh what what is my core sustainment?