8 IT strategy
90. We have looked before at Defra's Information
Technology (IT) projects, particularly during our inquiry into
the Rural Payments Agency.[166]
Since the Rural Strategy aims to improve the mechanisms by which
rural development funds are paid, the IT systems underpinning
the Strategy are clearly very important.
91. Underpinning the Strategy is the linking together
of the IT system that delivers payments under Pillar I of the
CAP (agricultural market measures and direct payments) with the
IT system that will be responsible for delivering the rural development
and agri-environmental schemes (Pillar II). IT did not form part
of Lord Haskins's review. However, he described the challenge
of linking together these systems as "frighteningly big".[167]
He told us:
One thing that really shook me at the beginning of
it was that Defra was on the way with quite a big investment in
IT without having worked out what the policy was behind it that
they were going to deliver. They were designing an IT system before
support such as the Entry Level Scheme had been decided and the
computers were being designed to deliver a scheme which had not
been designed itself.[168]
92. When launching the Rural Strategy, the Secretary
of State assured the House that she was "very mindful of
the need for IT to underpin successful delivery of services".[169]
However, Defra considers that "the reforms are not heavily
IT-dependent".[170]
The Minister said that, while he could not give a "100% guarantee",
Defra was "putting all the recommended positions in place",
but "not rushing it so much that we are adopting a system
before we have seen whether it can deliver".[171]
93. Defra's written evidence on the draft NERC Bill
estimated the investment costs associated with new IT systems
as being between £14 million and £16 million. The basis
for the cost includes changes to activities such as finance/HR/payroll
systems, e-mail/directory service, document and record management,
and web/intranet, as well as an element for contingency. IT represents
the single largest element of investment costs.[172]
Defra witnesses explained that it was only possible to give a
range of costs at this stage as "we need to tease through
precisely what they will include". They added that the introduction
of "slicker" IT support should produce efficiency savings.[173]
94. We have seen
examples in the past of Defra IT schemes having problems, the
latest manifestation of which is the delayed timetable for farmers
to receive their first single farm payments. Given the rapid pace
of change in setting up the new arrangements, care must be taken
to ensure that IT systems, which are vital in delivering funding
and services to those who need them, are in place in time for
the establishment of the new agencies. In its response to this
Report, Defra should set out the timetable for making necessary
changes to IT systems, with the dates by which key milestones
have to be achieved. Defra should also publish on its departmental
website a quarterly update on its progress towards achieving its
IT milestones. In addition, the Department should consider appointing
to its Board a non-executive member who has significant senior
management experience of successfully introducing major IT change
programmes in an organisation of an equivalent size to Defra.
166 Environment, Food and Rural Affairs Committee,
Sixth Report of Session 2002-03, HC 382, Rural Payments Agency Back
167
Q 133 Back
168
Q 140 Back
169
HC Deb, 21 July 2004, col 339 Back
170
Ev 115 Back
171
Q 326 Back
172
Appendix 26a, section 6 Back
173
Q 574 Back
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