VicRoads had told Victoria’s Auditor General that completing the State’s ‘Registration and Licensing System (RandL)’ will exceed its budget allocation by $135 million.
In his report titled ‘Impact of Increased Scrutiny of High Value High Risk Projects’, Auditor General John Doyle writes that: “The management and oversight applied to RandL did not effectively foresee and control risks before they materialised to significantly delay the project and increase the estimated cost of delivery. VicRoads has proposed additional expenditure of up to $135 million more than the approved budget of $158 million to finish it. This would mean a total project cost of $293 million—85 per cent more than the approved budget of $158 million.”
It goes on to say that “The single most critical cause of these poor outcomes has been the absence of human resources with the skills and depth of experience needed to manage and oversee a project of this type and complexity.”
RandL was designed to replace the quarter century old registration systems used for road vehicle and marine vessel licensing. However, RandL has had a troubled rollout since the business case and initial funding was handed down in 2009-10.
Intermedium reported in 2012 that “Cabinet budget allocations consistently underfunded the project due to a lack of confidence in business cases prepared by VicRoads… further delaying the project and increasing costs.”
“The project is currently paused for one year from February 2014 to allow VicRoads to update the business case to further explore the options for delivering the project and working with [the Department of Transport Planning and Local Infrastructure] to investigate the potential for legislative reform to streamline service delivery,” according to the Report.