KEY POINTS:
The Government has scrapped its predecessor's plans to maintain a secure computer network connection between Crown agencies.
State Services Minister Tony Ryall 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.
"The previous Government wrote off $10.6 million from running the GSN project in the 2007/2008 financial year,"he said. "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
