Transport Minister Chris Bishop has defended a troubled $1.4 billion national public transport ticketing system as "too far gone" to abandon amid growing scrutiny over "atrocious" government IT management.
The national ticketing solution project, known by its consumer brand Motu Move, has effectively been in development by the NZ Transport Agency (NZTA) since 2009, though substantive works on the most recent iteration began around seven years ago.
An independent review released in October found development budgets for the project were "under pressure" with a "very high likelihood of further significant delays".
The minister previously said he was "worried" at delays, but the visibly frustrated Bishop struck a notably more hands-on note speaking to media today, taking ownership for salvaging the project and promising a review of it once, and if, it is completed.
"I'm annoyed about it, as you are, but you know we can't just walk away, it's too far gone," he said at today's post-Cabinet media conference.
"My job is basically to fix it and try to make it work, and we are showing some progress."
The ticketing system, which has already cost hundreds of millions in development, missed three launch targets in nine months over 2024 and 2025.
A more recent review from December found progress had been made, but delivery timelines remained "ambitious". The review was first reported by The Post.
The "atrocious" assessment came from Prime Minister Christopher Luxon today, who used the issue to launch a broader attack on the handling of large technology projects.
Government technology projects face mounting political scrutiny, with a failed $33 million MBIE project now under a Public Service Commissioner inquiry.
That project – a seven-year immigration technology effort meant to modernise Immigration NZ's identity management system – was put on hold and then discontinued in November last year, having delivered no measurable benefits
Sir Brian Roche faces questioning over claims ministers were misled in briefings about the scheme. (Source: 1News)
An independent review found it cycled through a dozen project managers, brushed aside warnings it would not deliver, and gave ministers misleading advice about its progress.
Minister defends beleaguered project
Bishop today ruled out walking away from the ticketing project, saying the legacy systems it would replace were all reaching the end of their life and would cost more to keep running.
"If we carried on operating the systems that are already there, we'd be up for, I'm advised, $1.1 billion of operating costs over 10 years," Bishop said.
"So the national ticketing system, the operating costs of that, $830 million over the 10 years – so it's cheaper than just continuing with the legacy systems."
Bishop singled out Wellington's Snapper system, which he said was failing as it reached the end of its use.
"There are regular reports of Wellingtonians getting on buses, and the system's just not working, because it is end-of-life, which is why we are replacing it," he said.
Issues were also being experienced with Auckland's HOP system, 1News understands, as the 15-year-old system also faces its own age.
Bishop said Greater Wellington council had put more money into extending Snapper by a year, but that this would not include concession fares paid using contactless.
The council pushed ahead with its own $5.5 million upgrade to enable contactless payments on buses and trains in April, with chairperson Daran Ponter telling 1News in December that "we have all run out of patience" waiting for Motu Move's capabilities.
"[NZTA's] reaction is that it undermines the national ticketing solution, and they're probably right about that from a project management perspective.
"But do you think Johnny on the number 54 bus gives a s*** about that?"
Bishop said he had "essentially forced through" governance changes and pointed to early progress, including the deployment of a first stage for adult fares in Christchurch.
However, no Motu Move prepaid cards have so far been issued to members of the public and the city's Metrocard system remains in operation for concession holders.
NZTA project sponsor Sarina Pratley told 1News earlier this month the programme was still "progressing to its agreed delivery plan". Lobby groups, including the Taxpayers Union, have previously called for the project to be scrapped.
Inquiry to look at the integrity of MBIE's conduct, including whether officials may have misled ministers. (Source: 1News)
Luxon calls government IT 'atrocious' and 'abysmal'
Luxon defended pressing on with the project, saying "it's a good idea, and there's merit in the idea". He suggested his coalition Government had inherited a difficult situation, blaming his Labour predecessors, but credited Bishop with making improvements.
"Like most things from Labour, it's a total executional mess, but the good news is that with a great minister, he's actually made a lot of improvement," he said.
"It's too hard, and it's too far down the road to actually stop it completely. It's already being implemented and rolled out across Christchurch. It's not great. We'll do a review at the end of it, but our job is now to fix, and that's what Chris has been doing."
Luxon, who used to be chief executive of Air New Zealand, then used the issue to launch a broader attack on the public sector's handling of large technology projects.
"The management of government IT projects is atrocious. It is abysmal," he said.
"I'll be really honest with you, coming from outside the system, and you look at how large-scale IT projects are managed, it's pretty poor.
"That's why I've asked for the Government CTO essentially to be reporting into the Public Service Commission. That's why I brought outsiders in, in the form of Simon Moutter, Adrian Littlewood and others, to help give us advice on how best to structure this, going forward, so we can better manage IT projects in general across government.
"We have a huge opportunity with the public sector reforms to make sure that we are technology-enabled, that we're actually much smarter and much better at getting value for money out of the spends that we've got going across the system.
"There's a micro issue on this project, but I'm just saying, as a general point, I've been pretty unimpressed with how IT projects are managed."
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