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Auditor-General Sheila Fraser speaks during a news conference in Ottawa on March 31, 2009.Blair Gable/Reuters

Treasury Board President Stockwell Day says his government will find the money it takes to prevent a shut-down of basic government services like EI payments and tax returns due to rusted-out computers and ancient software.

In a report released Tuesday, Auditor-General Sheila Fraser warned that an unknown amount in the billions of dollars is required to update the government's information technology systems.

"Maybe it's billions, but we won't know until all the departments show us their plans," responded Mr. Day, who also has an assignment from the Prime Minister to find billions in savings to balance the government's books. "As you know, with technology, there are always people who are saying you should have newer and better."

Ms. Fraser said the problem is so bad that some key programs may shut down.

"If some of these major systems fail, I think the impact could be dramatic on people," she told reporters. "There are many Canadians who depend on these systems as their only source of revenue, be it Employment Insurance, be it Old Age Security, be it Canada Pension Plan ... It is absolutely critical that government ensures there [are]no delays in getting these cheques out."

At a time when Ottawa is looking to cut back, Ms. Fraser's report calls for major new spending on computers, the crumbling Parliament buildings and electronic health records.

On information technology, specific risks that could shut down service to the public include an obsolete heating and air conditioning system at a Human Resources and Skills Development data centre in Montreal. If the system malfunctions, leaving the site too hot or too cold, employees that process the data would not be able to work in the offices.

Meanwhile, Canada's National Immigration Program runs on a programming language - COBOL - that is no longer being taught and the staff that understand it are retiring. The program also uses a database system called DMSII that dates back to the 1970s.

Auditors found an internal report at Public Works that warned the department's pay and pension system is at risk of "imminent collapse," causing employees who process the payments to leave in frustration.

The Auditor-General's report calls on the Treasury Board, which oversees all government spending, to play a more active leadership role in tackling these problems.

The senior deputy minister at Treasury Board, Secretary Michelle d'Auray, is among the federal government's leading experts on information technology issues, having previously been in charge of the "Government Online" initiative nearly a decade ago.

In Treasury Board's written response to the findings, the department agrees with the recommendations, but said fixing the problem comes down to a spending decision that must be made by cabinet.

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