State Services Minister Tony Ryall says the Government Shared Network is financially unsustainable.
The Government is being accused of being short-sighted over its decision to scrap plans to maintain a secure computer network connection between Crown agencies.
State Services Minister Tony Ryall yesterday said the Government Shared Network (GSN) was financially unsustainable and the 16 agencies connected to the high speed
internet and telecommunications service would move to private providers.
Labour has reacted angrily saying the move was a step backward at a time when government should be supporting information technology projects
It said the GSN improved provision of state services, increased security and consolidated resources and expertise.
"The National Government's heavy-handed and regressive approach to new technology reflects its lack of plan for ICT and will damage the industry," the party said in a statement.
Mr Ryall yesterday explained the move saying the previous government wrote off $10.6 million from running the GSN project in the 2007/2008 financial year.
"The project had been running at a considerable financial loss ever since it became operational in September 2007 - losing $700,000 per month."
Mr Ryall said the Government was moving to close down GSN as early as practicable as it was not prepared to underwrite the losses.
GSN comprises a fibre optic network accessible from central Auckland and Wellington, with a wider network linking other agencies around the country.
Mr Ryall said the exit from GSN would take 12 months and the State Service Commission would be working with the agencies to ensure as little disruption as possible at the cheapest cost.
- NZPA
