INQUIRY INTO INCIS CONTRACT

Prime Minister Jenny Shipley today announced a comprehensive inquiry into issues raised by the management and administration of the INCIS contract.

"I am pleased that there is now a settlement of the legal issues, and that the taxpayer is receiving a substantial damages payment," Mrs Shipley said.

"This is a very good result. The money that Police have spent will now match the services received.

"However, some major questions remain and I am determined that everyone will learn from this experience.

"At the time that IBM withdrew from the INCIS contract I announced that an inquiry would be held once legal issues were settled. Next Monday I will ask Cabinet to consider the terms of reference and membership of the inquiry."

The inquiry will look into all aspects of the way in which the contract was entered in to, and how it has been managed. It will report back to the Government on 1 May 2000.

"Though it would be quite improper for me to pre-judge the results of the inquiry, it will certainly look into all aspects of performance of relevant public agencies.

"If the inquiry demonstrates any failure of performance, then the Government will take appropriate action at the time.

"An inquiry will put to rest the political point-scoring about the contract and will make sure that Police and other public agencies can best learn from the experience," Mrs Shipley said.