Costs is being blamed for the Government's decision to shut down a network linking government agencies with telecommunications services.
The Government Shared Network was set up in September 2007, but it has been losing $700,000 dollars a month.
The network connects 16 agencies on a secure voice and data network, and includes internet access.
State Services Minister Tony Ryall said the previous government wrote off $10.6 million spent on the network in the last financial year.
He says the agencies will be moved to a new provider in the private sector, with the aim of minimising costs.