Tag: National Audit Office

IT customs systems will fall apart like chocolate orange

terry's2-large_trans_NvBQzQNjv4Bq4cHFBfxHqfroyKoKkNhhsIOb6wYDoBFLKDEGDsm5ADgThe  new IT for the UK’s customs is so unready for Brexit it will fall apart like a chocolate orange, the National Audit Office has warned.

It has said that the Government’s post-Brexit IT system for customs is heading for a “horror show” that could risk £34 billion of public income.

In a scathing assessment, the National Audit Office said the computer system might not be ready by the time Britain leaves the EU, potentially plunging the UK’s ports into chaos.

The £157 million system is due to be completed just two months before Brexit in March 2019, but the NAO says delays common to new IT would cause massive disruption.

In unusually tough language, auditor general Sir Amyas Morse said ministers were only beginning to understand the momentous task of Brexit and that without further resources would find that “at the first tap, this falls apart like a chocolate orange”.

Publishing his report on the Customs Declaration Service, Sir Amyas said the IT system to record declarations on imports and exports threatened to become “a horror show”.

He said that the system is “well regarded”, but not considered flexible enough to cope with new rules after Brexit.

He went on: “At the moment it’s due to deliver just two months before the EU deadline … Our view in this report is that there is very little flexibility, should the programme overrun or unexpected problems occur. There are plenty of such problems that could occur.

“We’re not telling you this is a badly run project but, to be frank, looking at IT projects with still considerable technical challenges not yet resolved in them, we kind of know that it’s normal for there to be some drift in time.

“What’s unique about these circumstances is there can’t be a drift in timescale. Normally if you have this project and it took another six months to be a working project you’d say this is a pretty successful project. But this is not like that.”

Among risks outlined in the NAO’s report is the possibility that Britain’s final deal with the EU might require features in the IT system not yet anticipated by its designers – requiring last minute changes and causing more delays.

The Government wants to migrate from the old customs computer system starting in August 2018 and finish in January 2019. Under Article 50 the UK will leave the EU automatically just eight weeks later.

4G auction probed by National Audit Office

ukflagA complaint from Labour MP Helen Goodman, shadow minister for media and communications, looks like it will lead to an investigation from the UK’s National Audit Office about the “value-for-money” of the 4G auction.

A letter seen by the Guardian from NAO’s auditor general Amyas Morse to Labour MP Helen Goodman confirmed that the Office intends to “conduct a value-for-money study of Ofcom’s recent auction of 4G spectrum”. The NAO is apparently getting the investigation ready, prompted by Goodman’s complaints, which raised Ofcom chief exec Ed Richards’ concerns that the Coalition hadn’t focused on maximising auction revenues.

Goodman told Morse that “by not making maximising the auction’s revenues an objective for Ofcom, the government has failed to get value for money on this project”.

The Treasury forecasted £3.5 billion from the auction, a small amount next to 200’s 3G auction which raised £22.5 billion.

Auction bidders themselves have stated the auction had been poorly designed – as Ofcom didn’t raise the amount the government was looking for, or make sure spectrum went to everybody who wanted it, an anonymous bidder told the Guardian.

The NAO will not be able to force another auction, however, a report will go to the Commons public accounts committee – which can grill chancellor George Osborne for a response.

However, Ofcom claimed the auction was a success which “will deliver the maximum benefit to UK citizens and consumers in line with Ofcom’s statutory duties”. The body insisted the auction will create satisfactory competition which will lead to further investment. “The auction was designed to promote competition and ensure coverage, rather than to raise money,” an Ofcom spokesperson said.