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Customs comes clean
Elizabeth Colman
NOVEMBER 23, 2005
 

THE Australian Customs Service admits it was warned its $250 million computer project could not cope with the volume of cargo on the wharves more than a month before the system crashed.

After weeks of denials from the agency, Customs chief information officer Murray Harrison also admitted yesterday that system design flaws caused chaos on the wharves.

The admission puts pressure on Customs Minister Chris Ellison, with Labor calling for his resignation.

Customs has in the past blamed users for delays when the system for processing declarations for imports failed.

But Mr Harrison yesterday told The Australian that Customs brokers trying to communicate with officers on the ground "didn't get a response" - so they switched en masse to a web-based system, which could not cope with the influx.

"More people needed to use the Customs interactive web-based approach than had been predicted and consequently the response times were not up to scratch initially," he said.

"The pressure on the web-based system was only a few days. It's the sort of thing you could only discover on experience."

Customs brokers were left stranded when the system - a computer package that processes Customs declarations for imports - crashed on October 12.

Only following the disaster did Customs boost the system's capacity.

In a further development which could leave the agency vulnerable to claims for compensation from Customs brokers, Mr Harrison conceded the agency was warned of a major capacity problem in a report before the system was launched.

As revealed in The Australian yesterday, an August "mainframe capacity review" report to Customs officials warned there was "a major capacity problem imminent".

Mr Harrison yesterday downplayed the warning, saying the study was a "70-page highly technical report which has a line about capacity".

He said all recommendations in the report were carried out before the due date but admitted Customs did not give the system more power.

"You've got a house that's potentially full, you can choose to add more rooms to the house or you can clean it up," Mr Harrison said. "We thought that (approach) was sufficient."

Some importers are still using paper to lodge their declarations with Customs six weeks after the launch of the system.

Mr Harrison also admitted the third party company used by the agency was worried at a meeting before the project launch that the software would not be ready.

Labor's Justice and Customs spokesman, Joe Ludwig, said Senator Ellison should have known about the progress of the project.

"This should have been delivered as a turn-key system, fully tested and ready to go. Instead the minister delivered a semi-operational lemon at a cost of $250 million. An inquiry into this whole debacle should be held."

Senator Ellison yesterday said he was told the system was ready for its October 12 launch.

"The advice I always had from Customs was that it was ready to switch over to the new system in October," he said.

 

Lloyd's List Daily Commercial News 18 November 2005


Coles Myer still has 40,000 boxes sitting at the docks

 

Coles Myer said it was waiting on "probably 40,000 containers" at Australian ports to be cleared by the Australian Customs Service, all delayed as a result of the Integrated Cargo System.

The company told reporters after its annual meeting yesterday (Thursday, November 17) that its nonfood stores, including Target, Myer and Kmart, were suffering due to the backlog of cargo and high fuel prices.

Coles Myer chief executive John Fletcher said the imports represented inventory that he would rather have in the stores.:

"As the biggest importer of containers in this country, what's happened with Customs has affected us, but it's affected every retailer," he said.

He hopes the backlog of containers can be resolved shortly – and in time for the vital pre-Christmas trading.

The numbers were coming down each week, he acknowledged.

Mr Fletcher said the company expected to meet its full-year earnings of $769m, despite expectations for ongoing tough retail conditions.

 

  November 01  2005  


 

 

Customs reveals last-minute rush, surge of help calls

 

Customs has admitted to the Senate estimates hearings last night (Monday, October 31) that the finished Integrated Cargo System was only made available to commercial software developers a week before the October 12 cutover to the new system.

An unexpectedly large number of so-called critical issues had remained in the system while software developers were trying to complete their own packages, with late or non-arrival of software adding to the problems with operating the ICS.

The Customs team, led by Customs minister Chris Ellison and Customs chief executive Lionel Woodward, also revealed the Customs helpdesks had fielded 13,000 calls in 19 days.

The average call waiting time was 22 minutes, ballooning out to 55 minutes on one day.

Customs also admitted under questioning that the the service foresaw the zero tolerance of incorrect data in the system would cause problems, but had persisted without any transition period.

There were also questions on Customs's legal powers to end the extension of Compile, on which industry is now heavily dependent to maintain cargo clearances.

Customs said the system could be maintained indefinitely at the determination of Customs's chief executive, but assurances on the system being maintained until the transition is complete are likely to be sought at the next Customs/industry action group meeting on Friday (November 4).

 

 

 

 

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