Intermedium’s first pass review of the 2011-12 NSW Budget Papers has found that the state’s ICT capital expenditure for 2011-12 will be in the order of $800 million, approaching a similar level of ICT expenditure as last year’s $883 million budget allocation.
This $800 million is comprised of a mix of funding for new and ongoing projects. Major winners of new funding in this year’s budget include Health and Businesslink. Transport has had major ongoing project funding slated for expenditure in 2011-12.
As part of a $17.3 billion State Health Budget (a $950 million increase from last year), Health received new ICT funding of $394.6 million, of which $37.3 million is scheduled to be expended in 2011-12. The largest single new ICT initiative is a $170 million investment into an electronic medications management (EMM) system that will be used across the NSW public health system.
As reported by Intermedium before the official release of the NSW Budget 2011-12, the EMM will reduce the number of transcription and dispensing errors by delivering a more reliable and efficient management system for the provision medication.
Businesslink, the shared services agency for Families and Community Services (FACS), has been allocated $92 million in new funding to be expended over the next two years for a range of projects including Call Centre, Data Centre and Information Technology Infrastructure Consolidation initiatives. The largest new Businesslink initiative is the $21.7 million Single Enterprise Resource Planning System, which is scheduled for completion within the year.
FACS (formerly Human Services NSW) as a consolidated entity has been around for just over two years having been formed from a number of community service delivery agencies including the Department of Community Services and Housing NSW. The Single Enterprise Resource Planning System will further advance the already well progressed integration of this agency.
The agency also has a number of major ongoing projects underway and its total capital works program allocation for both new works and works-in-progress in 2011-12 is $89.7 million.
A long awaited e-ticketing system will come a step closer with the Department of Transport due to spend $110 million on the roll-out of the electronic ticketing system (ETS) in 2011-12. The system will replace the existing magnetic-strip based ticketing system across the entire greater Sydney public transportation grid.
The proposed electronic ticketing system will be rolled out by Cubic Transportation Systems, the group behind London’s successful Oyster Card system. The ETS, which is valued at $1.2 billion, has been in development since May 2010.
Cubic and its fellow suppliers in the Pearl Consortium were awarded a $398 million contract for the roll-out of the system in July 2010.
NSW commuters will continue also benefit from the allocation of $12 million towards the development of information systems for rail commuters and passengers, aimed at improving customer communications.
These initiatives follow the launch of the Live Traffic NSW website. The site currently provides motorists with real-time traffic data, critical alerts and estimated travel times.
The $800 million ICT Capital allocation estimate is subject to change as Intermedium undertakes closer scrutiny of the budget papers. Intermedium will be providing further analysis of the NSW Budget 2011-12 over the coming weeks.
For more on the future of ICT in the NSW Government attend Intermedium’sNSW Budget Briefing, and obtain greater detail about the implications of the NSW 2011-12 Budget on the public sector ICT market.