Customs cost blowout skyrocketing

Treasury says the cost blowout of the troubled Joint Border Management System is now closing in on $50 million and could rise to as much as $132 million over the life of the project, says Labour's Customs Spokesperson Rino Tirikatene.

“Just last week Customs told MPs at Select Committee the current cost of the project is $104 million, around $30 million more than the $75 million originally earmarked.

“But of even greater concern, Treasury says that the 'whole of life' costs of the project could jump to over $207 million.

“The project is almost four years overdue and has been delayed multiple times. Treasury says that the risk of late delivery next year is 'high' which means there could be even more delays and greater costs for taxpayers.

“The Government needs to stop sitting on their hands with this project before it becomes another Novopay,” says Rino Tirikatene.