Computer delay latest in a series of fiascos

THE CHAOTIC scenes outside the Passport Agency's offices are the disastrous results of the Labour Government's first attempt at a private finance initiative.

Its chosen partner, the German-owned computer company Siemens Business Services, is a subsidiary of the giant Siemens plc, which produces everything from power stations to washing machines and mobile phones. The Government offered SBS a contract worth pounds 120m over 10 years to take the Passport Agency into the era of information technology.

The plan was to improve security checks on passport applications by installing a system that the heads of the agency hoped might also reduce the number of staff it was necessary to employ at its offices.

Instead, applications, which had been processed at an average of 11 days last year are now taking 35 to 39. Rather than cutting staff costs, the agency has had to take on 400 extra people to cope with new work patterns.

Siemens says that the system was delivered on time and attributes the delays to "teething problems" and exceptionally high seasonal demand.

But the difficulties are not the first experienced by SBS on a government information technology project.

The previous government chose the same company to oversee the installation of a computer-based system at the Immigration and Nationality Directorate. This pounds 77m project, which was attacked by the National Audit Office in March for being "too ambitious", has contributed to the shambolic state of the department, which was also struggling to cope with moving offices and revamping its business plan.

Siemens also won the contract to take over the administration of the Government's National Savings scheme.

Tony Collins, executive editor of Computer Weekly magazine, said that Siemens - which competes with other international giants such as the American companies EDS and Andersen Consultants and the British-based ICL - had "hardly existed" in terms of central government contracts until three years ago.

Andersen has had its own difficulties with installing the computerised National Insurance recording system for the Department of Social Security.

Mr Collins said the companies installing the government computer systems must take a share of the blame for the problems. "I can't think of one that has gone smoothly," he said.