Teresa Pearce
Main Page: Teresa Pearce (Labour - Erith and Thamesmead)Department Debates - View all Teresa Pearce's debates with the Department for Work and Pensions
(11 years ago)
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Mr Duncan Smith
In the private sector, programmes allow up to 30% or 40% for write-downs and reworks, which is well within the amount we have written down. I believe that this programme will roll out more efficiently than almost any other programme in the private sector.
Teresa Pearce (Erith and Thamesmead) (Lab)
In yesterday’s Work and Pensions Committee, the DWP finance director general stated that £303 million has so far been spent on developing IT. We have heard that £40 million has been written off as it could not be capitalised because it had no use, and that £97 million was capitalised and written down. That leaves a further £107 million of IT expenditure that was not capitalised as it has no useful software. Will the Secretary of State confirm that of the £303 million spent, only £97 million has resulted in useable software?
Mr Duncan Smith
The hon. Lady, of course, misrepresents the position. [Interruption.] The money that we were talking about yesterday, the write-offs, is for technology that will not be used, and the write-down is equipment we will be using over the next 12 months. The other value she mentioned is for equipment that will be written down over a period of years, once we start to use it. We cannot write it down until it is actually in use.