Squeeze on police for Incis funds

Treasury wants some work contracted out

By Eugene Bingham

Police work should be contracted out so more savings can be squeezed from the force's budget to pay for its troubled computer, according to Government papers.

Confidential Treasury documents say some police work should be done by private contractors, with the savings going towards repayments for the Incis system, now on hold while its future is decided.

According to last year's police review, some of the most likely areas for "outsourcing" are prisoner escort and custody, lost and found property and guarding of crime scenes.

The Treasury documents, obtained by Labour MP George Hawkins under the Official Information Act, say savings from the review have not gone far enough to meet repayments to the Government for the computer.

Police originally agreed to repay $23 million a year, but after last year's review it was agreed that figure would be reduced to $15.9 million. The figure was cut mainly because of a decision to defer privatisation of some police work.

"The deferral of outsourcing has significantly reduced the level of savings to the extent that these are now insufficient to fully meet the Incis commitments," said a confidential paper to Treasurer Bill Birch last October.

"It is proposed to firstly use all savings from the rationalisation of staff for a partial Incis repayment, restructuring and unfunded wage-round costs, and then to get the balance of savings needed for Incis repayments from outsourcing."

Savings of $15.9 million would be repaid to the Government from 2000-2001, with the rest of the $23 million coming from privatisation.

Mr Hawkins said yesterday that the papers contradicted Government statements that the review savings of about $50 million would be used for policing.

Prime Minister Jenny Shipley, Police Minister Clem Simich and his predecessor, Jack Elder, had given assurances that money freed up would be spent on the frontline.

"Instead, the police are having to cut back everywhere in order to pay back the Government for this damn computer," said Mr Hawkins.

A spokesman for Mr Simich said an extra 120 police had been committed to the frontline because of the review.

He could not comment on the future of repayments between the police and the Government because of on-going negotiations about the Incis project.

Treasury, police and State Services Commission officials are discussing the future of the project with contractor IBM.

The project is so far budgeted to cost $119 million, $21 million more than originally expected.