By Dave Lord

DOCUMENTS REQUESTED by The Courier under the Freedom of Information Act show how costs for installing a new computer system within Perth and Kinross Council’s troubled housing department rose from an estimated £750,000 to a staggering bill of more than £2 million.

Just four days ago The Courier revealed local taxpayers were filling a budget black hole thanks to the department’s failure to claim rent arrears from homeless tenants in Perth hostels.

Ironically, that situation was partly blamed on teething problems with the new IT system, known as SX3.

Now documents dating from 2000 to the present day detail a budget for SX3 which spiralled from well under £1 million to over £2 million.

A senior source within the council last night described the system as a “costly white elephant,” questioning whether it can perform its taskas well as the old system.

The papers state, “Prior to the tendering process the cost of implementing an IT system was estimated at between £0.7 and £0.9 million.

“From January 2003 to date the SX3 implementation has been estimated to cost Perth and Kinross Council around £2 million.”

A log shows the budget first crept up by £100,000 or £200,000 but in 2001 it dramatically leapt from £900,000 to £2mand then £2.164m.

Last night a source within the authority claimed, “This is basically a costly white elephant.

“To present SX3 as a well-managed process brought in under budget beggars belief. It is a triumph of spin.

“If the council had known in 2000 that the system would cost £2 million rather than £750,000 would the project have got the go-ahead?”

A Perth and Kinross council spokeswoman last night said, “An initial estimate for implementing a new computer system was prepared for consideration in January 2000.

“The council subsequently undertook a detailed tendering and evaluation process that led to a revised estimate of £2 million.

“This was included in the investment programme approved at a special meeting of the housing and adult care services committee in January 2003.

“The budget for the project has subsequently been increased by £164,000, £100,000 of which is fully funded by Communities Scotland.”

Describing current spending as “within budget,” the spokeswoman continued, “The implementation of the SX3 system has enabled the council to improve services to tenants and enhance our management information reporting capability.

“In addition it has secured the long-term availability of a computer system for the housing service.”