Qld Govt pours more money into Health payroll

The Queensland Government has been forced to provide a further $384 million in funding to the Health Department to rectify its problematic rostering and payroll project.

The bungled payroll system, built by IBM, resulted in more than 35,000 payroll anomalies and sparked an inquiry that is still running.

A KPMG audit last year estimated $839.9 million would be spent on fixing the system over the next five years, bringing it to a total cost of $1.25 billion. 

Of that, $1.01 billion is to be spent on standard operations, $220.5 million on fixing problems associated with the existing system and $25.0 million on picking a replacement. 

Queensland Treasurer and Minister for Trade Tim Nicholls today  said the additional funding, to be provided over four years, was being announced "without pleasure".

“I know the Minister and departmental staff are working incredibly hard to enhance the payroll environment, improve pay outcomes for Queensland health employees and stem the financial bleeding. They need, and will continue to receive, our support,” he said in a speech to Parliament.

The extra funding will allow the Health department to “operate, maintain and enhance the Queensland public health system rostering and payroll environment, improve pay outcomes for Queensland public health system employees, and reduce the recurrent operational payroll costs,” according to budget documents.

The State Government today confirmed the Commission of Inquiry would cost $5 million over the 2012-12 and 2013-14 budget periods.