Tirikatene Rino: Customs and Excise (Border Processing—Trade Single Window and Duties) Amendment Bill Biosecurity (Border Processing—Trade Single Window) Amendment Bill — Third ReadingsText is incorporated into the Bound VolumeTirikatene Rino: Customs and Excise (Border Processing—Trade Single Window and Duties) Amendment Bill Biosecurity (Border Processing—Trade Single Window) Amendment Bill — Third Readings[Sitting date: 20 March 2014. Volume:697;Page:16941. Text is incorporated into the Bound Volume.]RINO TIRIKATENE (Labour—Te Tai Tonga):Kia ora Mr Deputy Speaker. I am pleased to speak at the final reading of these two bills in relation to the Joint Border Management System: the Customs and Excise (Border Processing—Trade Single Window and Duties) Amendment Bill and the Biosecurity (Border Processing—Trade Single Window) Amendment Bill.We have heard the Government assert that the Trade Single Window of the Joint Border Management System is running to plan. “Everything is hunky-dory; nothing to see here.” it asserts just like it did with Te Kōhanga Reo National Trust: “Nothing to see; everything is going to be functioning properly.” That is the thing with information technology or computer terms. They are very sort of harmless and benign—you know “Trade Single Window”. No one really knows what that means. We know we have seen a working demonstration but when you actually get to IT systems unless you are an IT whiz no one really knows what a Trade Single Window is and what is actually behind the system what is driving it and what its functionality is. So we have got the Government here saying that yes we have this Trade Single Window system. We have paid $90 million for it—it was originally a $76 million system that we wanted to build. We engaged IBM a major multinational corporate to deliver this. And then it gets a bit hazy because the time frames changed the budget changed. They had to seek Cabinet approval again for an increase so the budget has grown to some $90 million for delivery of this system but we do not really know what the system is. Really only those technically minded people will know.What we have gleaned from the Government members is that all is not well with the Trade Single Window system. We have heard from the Minister of Customs during the Committee stage that there were issues around the system and the testing and modules were still to be finalised. There was more testing that needed to take place and extra functionality. There were issues around the scope of changes. So there is all this language around how we are not quite sure and how we have not really delivered what we thought was going to be delivered but all the while the money is being used up. You can guarantee that that $90 million has been all spent—all spent—as we see from the Customs Services responses to the financial review to the Foreign Affairs Defence and Trade Committee. It was a $90 million project. Tens of millions of dollars have gone into it—$40 million to IBM and a host of nearly 100 consultants contractors and IT firms have all been nibbling away at this $90 million. And we still do not know whether the Trade Single Window is fully functional and whether those contractors have actually delivered on what they were contractually obliged to deliver.We here on this side of the House have not had the comfort from the Minister that they actually have delivered on the job. In fact I actually sense that when you are in these contractual arrangements with IT firms they can get very sticky. We are talking big bickies and we are talking about big powerful companies. I wonder whether the tail is wagging the dog on this. I wonder whether IBM actually is playing hardball with the Customs Service and actually saying it has delivered what it believes the Customs Services wanted it to deliver or if there have been problems and it is saying “Let us change the wording let us change the language around this module or the functionality—technical terms—that we are delivering on.” So it will be interesting because this tranche 1 of the Joint Border Management System was according to the Customs Service’s responses to the select committee to be complete—its estimated completion date—in June this year. So that is the end point.Now we hear that that is not so much—it is a fluid project. There is no end point. There is still some functionality that we are still testing which still needs to come through. So as Mr Hayes said it is a work in progress. Well he did not actually say that but words to that effect came from the Government. It has not got an end point even though the actual budget has been approved for this project and the stated delivery time is in June this year. I mention that because we really are in the dark in terms of how this system is delivering and whether all of the contracted functionalities in the build of this system have actually been delivered. Certainly we know that if there is a dispute IBM is a company that will definitely want to make sure that it is not going to be doing any more work than it has—it will definitely demand that it is paid for it. Therefore we have seen the budget blow up to $90 million.We have not seen anything around tranche 2. What we really would like to see is the formal evaluation of this system the evaluation of tranche 1. That we understand is due to Cabinet in June this year. But it will be interesting because no proposals no costings no scope of work have been provided for tranche 2 because they have not been able to really adequately deliver on tranche 1. We definitely need to see that evaluation. I know that there have been multiple layers of project teams and governance boards. From a project management point of view I guess the Customs Service has done its best to put great systems and checks and balances in place. But ultimately the rubber meets the road when it comes to whether the Trade Single Window has delivered on all the functionality within time and within budget as the Government had contracted to deliver.We are very sceptical on this side because based on the language from the Minister and also on the information that has come to hand through my colleague Mr Shearer it seems that there are problems with this system. What we do not want to see is another Novopay another INCIS-type scenario where we get a huge waste or get into a huge fight with a multinational company to try to seek some accountability for the failure of that company to deliver on what it has been contracted to deliver. We know that the Joint Border Management System is a great concept. It came out of the last Labour Government and we have supported it all the way through. It is the implementation that we have had real concerns about because trade is the lifeblood as we all know for our country and our economy. So we need efficient streamlining of our border processes and Customs Services does play a very key and a very creditable role. I must commend the Comptroller of Customs—I had not known what the word “Comptroller” meant but I understand it is a term that comes from way back in time—Carolyn Tremain and her team because they do a great job on that front.I do recall these words from the Minister of Customs at the Foreign Affairs Defence and Trade Committee: If there was a major problem with the Joint Border Management System with the Trade Single Window that was impacting on our trade across our borders he would take the first flight to the Bahamas. Well we will have to wait and see whether that does transpire because if there are problems with this system we on this side of the House would all too happily and gladly see that Minister take a trip to the Bahamas. Aside from that and aside from those concerns we do commend this overall system and we commend this legislation to the House.