3 Jun 2015

Auditor-General says IRD system must succeed

1:46 pm on 3 June 2015

The Office of the Auditor-General says a major overhaul of Inland Revenue's new information technology system has to be a success.

Cabinet has so far approved $193 million for the programme but that's expected to grow to $2 billion.

The Auditor-General's David Press told Parliament's Finance and Expenditure committee risks had to be managed, to ensure the new system was economic and efficient.

"Ultimately this is a programme that cannot fail because there is so much dependant on it and a key building block of effective programmes is good governance."

Mr Press said the Auditor-General would continue to monitor Inland Revenue's progress.

Inland Revenue said it was very aware of managing the programme costs and the department had a good track record.

Several MPs questioned Inland Revenue about value for money, citing the cost blowout on its revamp of the child support payment system.