Senate Rural and Regional Affairs and Transport Legislation Committee, , 21:13 to 29:47
A detailed look at the Simplified Targeting and Enhanced Processing System (STEPS), a $145 million project to digitize biosecurity import processes and modernize digital infrastructure.
Topics: Biosecurity, Government IT systems, Procurement
Speakers: Tina Hutcherson, Speaker 5, Matthew Gson, Amanda Charas, Speaker 3, Mr. Matthew Gson, Ms. Amanda Charas, Ms. Tina Hutcherson, Speaker 12, Speaker 8
What's that for? >> Uh Senator that will be a combination of different measures uh in the current year. So that is
sorry 2 seconds.
Uh so senator it's a as I mentioned it is a combination of different measures. Uh so there is a small amount of funding for the the department uh to support the uh regional investment corporation with the additional loans of 1 million. Um there is also funding under the securing the future of agricultural trade measure of uh 10.4 4 million and that's a combination of and equity. That is the
bulk of it. >> Oh, some Okay, I'll come to the equity. Yep. Okay.
>> Um and I think that is the majority senator of the of the $12 million >> and the equity the $33.5 million. >> Uh Senator, I think that is the I'm moving the front. will confirm. Uh that's a reclassification senator of uh the um of our steps project um that uh we have undertaken with department of finance to reclassify that money um from operating to capital.
>> Okay. Right. So but that was provided by the department of finance. The approval
for that was that was existing operating >> funding that we have reclassified into
>> and what's the what's the capital why why do you need it reclassified into
capital >> uh just for the nature of the expenditure senator is
I'm asking what's the expenditure I
suppose >> uh so the actual expenditure >> um I might need to defer to my one of my colleagues in terms of the actual specifics of the expenditure but it is in effect building a um IT related project so it's IT capitalization under
the accounting standards. >> Okay. Well, maybe take that on notice. >> Um, let's So, is most of the Well, maybe if someone could come to the table. Is all is the bulk of that an IT um investment? Is it the 33 million? >> Yeah. Just actually seems like a lot of money. That's all.
>> Good morning, Senator. Tina Hutcherson, Deputy Secretary Agricultural Trade and Regulations. So the um expenditure that the um CFO is referring to is for a program called the simplified targeting and enhanced processing system or steps program. Um it's an allocated uh program uh over a number of years to set the foundation for a modern biocurity suite of digital solutions. So the um program has looked closely at its costs and expenditure and reclassified a proportion of the money um required for
that work. >> So but this was an existing before this this before the paz came out in December this was uh an existing program >> correct
>> what was its budget before >> um so the program was 145.2 2 million over 3 years um through the 2023 24 strengthened and sustainably funded by a
security measure. >> Does this mean it's it needs another 33
million? >> It doesn't need more money. It's moving money that it already had um in a different year and for that reclassified
purpose. >> So it's still in budget, still within the 140 >> correct >> million budget. Okay. All right. Um what is it? That's a lot of money. Uh what's
it doing exactly? >> So the um it's about digitizing um import processes for biocurity imports. Um >> right. Why does it cost so much? uh because they are um important processes um that you know deal with significant volume uh of imported items uh and to give much more accessibility to importers to understand the processing of their goods to provide more streamlined information to the department to make riskbased decisions to integrate better um with systems within the department but also >> who's doing the work >> uh within our department within my division
vision within my group. >> You're not contracting out to an IT
company or some such. >> Uh there are a whole range of um arrangements in place to deliver that program of work, but it's led out of the
department. >> It's led in your department, but yeah, I would imagine you are contracting IT companies to build an IT system.
>> Um is that correct? >> To get into the detail of that, I'm happy to. We can do that now. Um >> so who's who's who have you contracted under this program? Uh there I have information about the particular contracts. I will invite my colleague um Amanda Charas who's our chief digital and data officer who'll be able to give specifics um to that question or we can give a high level and probably give more detail but I'll hand over to Miss Charas.
>> Thank you. Yes, Amanda Charas, chief digital and data officer. Um so we we're not contracting out to a specific company to deliver on behalf of the program but we do have contractors engaged as part of our workforce. >> Okay. So who's designing the IT system? >> So internally we are designing the system building it.
>> Okay. Um Okay. All right. When was the decision made to do this? >> In the 23 24 budget. >> Budget. Okay. Did you at all tender out to see if it could be done cheaper by a private company?
>> No. >> No.
>> No, Senator. >> Okay.
>> Uh, it has been >> How did you calculate how much it would
cost? >> It was a business case developed um at the time and submitted to government. >> Okay. All right. >> So, it's a range of digital and data.
>> Did it go to public works as such? Does this sort of stuff go to public works committee or it's only physical things? Do they don't?
>> Yeah. the CFO might be able to assist with that, but there was um it builds on work that had been previously done in the department and and part of the first and second case business uh business case processes there were um proofs of concept. So the the sort of infrastructure that underpins the ideas had already been put in place and operational um and this piece of work builds on that um modernizes the platform moves it into um a more modern way of doing business um >> that's you know demonstrated to be
effective in that environment. >> Given this is a system for our bio security uh will this be cost recovered? Will the cost of this eventually flow
through to fees? >> Uh, I would need to I >> I'm not sure that any decision on that has yet been made, Senator, but we will I'll double check and come back to you.
>> We could answer that under outcome too, Senator, with security staff if that's
right. Later today, >> I might just flag I'd be interested to know or maybe you can tell me you're in the corporate area. How what would you amatize uh an IT system over if it were to be
>> so so senator Tina is not um Miss Hutchinson's not in the IT corporate area but um
>> presumate decision about what amotization rates you'd apply to >> or certainly a finance question >> to an IT system >> presumably you might already do that in some of the cost recovery arrangements for some IT costs
>> um Senator given the unique nature of it I might just need to take that on notice and come back to you on that just to ensure that you We we do have a range of accounting policies around how we amatize and depreciate our assets and um we obviously have to look at the potential use useful life of that asset under the accounting standards. So I'll
come back to you on that one. >> Okay. All right. U moving back to the table. Uh what's the 190 million extra in the special accounts?