Political reporterThe problem-dogged computerised National Insurance Recording
System (Nirs2) may not be operational until June 2001 - almost
three years after it was supposed to be fully on-stream.
The system has already cost the taxpayer more than £35m in
compensation payments, the National Audit Office revealed, as it
raised concerns over the National Insurance Fund Account for the
13th year running.
It said the Department of Social Security and the Inland Revenue
were considering a claim against the main contractor, Andersen
Consulting, over delays in delivery of the system.
Before taking a final decision, ministers are considering legal
advice, the firm's "considerable efforts" to get the system
functioning properly and the supplier's commitment to the future
needs of the Revenue and DSS .
Even before the Nirs2 fiasco, computer problems over National
Insurance payments have been a repeated feature of the 13
consecutive qualifications of the accounts - widely believed at
Westminster to be a record.
Controller and auditor general John Bourn said that because of
"problems with IT systems, some elements of the estimated
outstanding debt are unreliable".
He said that although the Inland Revenue and Andersen Consulting
had made progress, much remained to be done and the system might
not be fully operational, in the worst case, until June 2001.