Select Committee on Public Accounts Minutes of Evidence


Examination of witnesses (Questions 100 - 119)

MONDAY 15 JUNE 1998

MR ROBIN MOUNTFIELD, CB, MR MARK GLADWYN, SIR ALAN LANGLANDS and MR FRANK BURNS

  100.  It does. It does not sound good but it sounds right. Any reason to think that is the end of it?
  (Mr Mountfield)  No, I do not think it would be prudent to say that with the record of forecasting in the IT field one could be absolutely confident it is not going to increase. All I would say is that as we get deeper into this programme professionals are looking in detail at the forward costs. In some cases they are reducing them. In a few cases they are increasing them. The overall effect, as you rightly point out, is that it is still increasing. I would be frankly surprised if it did not go on increasing a little bit.

  101.  If it did increase at the same rate between now and the year 2000 there would be an extra £180 million on costs.
  (Mr Mountfield)  I think it is unlikely to be at that rate, if only because the proportion of work still undone is reducing all the time. We have already spent, we believe, at least a quarter of the total.

  102.  Can I ask you a bit about defence. We are told that defence is the area which is having difficulty. In what sense is it having difficulty and in what way is it affected?
  (Mr Mountfield)  I do not think I meant to imply that they were having general difficulty.

  103.  The NAO report refers to them having difficulty.
  (Mr Mountfield)  The point I tried to make was in the area of skilled resources, which is drawn attention to, I think, in the NAO report, it has certainly been mentioned in the Chancellor of the Duchy's statements, and the problem there is not that they are finding it impossible to get the skilled resources but they are having to divert them from other IT activities. This is an example of where tackling the year 2000 problem is leading to postponement of other activities.

  104.  That applies to Sir Alan Langlands as well does it not?
  (Mr Mountfield)  To some extent.

  105.  Why single out the Ministry of Defence as being particularly vulnerable?
  (Mr Mountfield)  Because the majority of departments have said that they are not finding that skill shortage is a problem. It may be that there are financial reasons why they are having to divert from other matters into year 2000 work but in the Ministry of Defence's case they say they are concerned about skill supply shortage.

  106.  Defence now is very IT based, is it not?
  (Mr Mountfield)  Indeed.

  107.  Is there any strategic or operational risk as a result of this worry about skills?
  (Mr Mountfield)  I do not think I could competently answer on that point. The general messages are reassuring on that point but you would not expect me, I am sure, to answer on the Ministry of Defence's detailed security consideration.

  108.  No, but I want to know about it.
  (Mr Mountfield)  Indeed.

  109.  Would you please put a written report in[2] because I think if there is anything wrong on the defence front the Committee and perhaps the Defence Select Committee would want to know about it.
  (Mr Mountfield)  Indeed.

  110.  We will alert our sister Committee to that fact. Would you let us have an urgent note on that?
  (Mr Mountfield)  Yes, we will.

  111.  Thank you. Sir Alan, again may I congratulate you on your elevation.
  (Sir Alan Langlands)  Thank you.

  112.  Your's has been a miserable job, we well understand that.
  (Sir Alan Langlands)  Thank you very much.

  113.  This Committee has not done much to make it much happier I realise.
  (Sir Alan Langlands)  I suspect I am about to see the golden goal, Chairman.

  114.  I am in an amicable mood I promise you. Tell me, our old friends RISP and HISP, Wessex Regional Information System and your own national hospital information system which cost £100 million to save three million pounds a year—great investment—how are they affected by the millennium bug, if at all?
  (Sir Alan Langlands)  They are affected in the same way as all our major operating systems. We have talked a lot tonight about medical equipment but, of course, we do have other so-called patient administration systems as a class of systems in the Health Service and these are affected. These changes and the necessary checks and compliance checks on these systems have been worked through with the manufacturers as it has in relation to all our equipment.

  115.  On HISP it is not long ago we were looking at that. It is a fairly recent project, is it not, the national hospital information system This was at the frontiers of application of information technology to your sector of Government service. It was preparing us for the next century. Are you telling us they overlooked the fact that the next century has a different date?
  (Sir Alan Langlands)  No, I think it does go back some time, Chairman. These systems have been developing right through from the late 1980s, through the early 1990s and into the mid 1990s.

  116.  What is your estimate of the cost of those two particular projects which as a Committee we know a fair amount about?
  (Sir Alan Langlands)  I cannot break down the costs that I quoted by system. The breakdown I have here is in relation to the different sorts of trusts.

  117.  That is not trusts, is it, you run that?
  (Sir Alan Langlands)  No, no.

  118.  Who runs HISP?
  (Sir Alan Langlands)  The HISS system or further developments of that system are run in individual trusts as part of their normal activities.

  119.  It is a national integrated system? Does that not bring it within your remit?
  (Sir Alan Langlands)  It is not a national integrated system.


2   Note: See Evidence, Appendix 3, page 20 (PAC 360). Back


 
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