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Your Ref: 01090013
- Our Ref:ECT 377/09
Rt Hon Jacqui Smith MP
House of Commons
LONDON
SW4A OAA
23 December 2009
Dear Ms Smith
Thank you for your letter of 1 December in relation to one of your constituents, Mr
Julian Wilson and your concerns around the Horizon computer system. May I first
I apologise for the delay in reply.
Horizon is a computerised accounting system which operates in around 12,000 Post
Office® branches. At peak times it is processing up to twenty million transactions per
day, 750 transactions per second.
Over the years the system has been tested both in and out of criminal and civil court
.«.+. and.has not been found wanting. Whilst I recognise that some subpostmasters have. ee
verre. found this difficult to accept, there is no-evidence to doubt the integrity of the Horizon" «© =
system and we retain absolute confidence in its’ robustness and reliability.
Our ongoing monitoring and control processes mean that any issues in a ‘live’
operation are quickly identified and resolved, and ensure that should part of the
system or equipment fail, the integrity of the accounting records is maintained.
The Horizon system provides a transaction log which sets out details such as date
and time, the name, volume and value of transactions. If an error takes place these
transaction logs and other system reports can be used to pinpoint and correct this.
I However, the Horizon system and the processes around it are dependent on the
I staff in branch entering items accurately into the system.
Moving forward, as with any business we constantly look to how we can operate more
cost effectively but at the same time update and improve our systems and processes.
I
I
I
We are currently/....
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ia)
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We are currently in the process of implementing a new version of Horizon with the
main aim of significantly reducing running costs that has been achieved by the
negotiation of a new contract. The new system called Horizon Online™ has been
designed with extensive input from subpostmasters to ensure it is also easier to use.
The preparation for the roll out of new counter software is at an advanced stage and
completion is expected to be by the end of April.
The relationship between Post Office Limited and the thousands of independent
business people who operate a Post Office® service is of paramount importance to us
and I fully agree that it is vital that our subpostmasters and mistresses are provided
the highest level of support. I believe that the systems we have in place deliver this
and remain fully satisfied that the system and processes around Horizon offer a
very high level of security and resilience.
I trust the above information has allayed your concems but should you have any
further questions, then please do let me know.
Yours sincerely
Alan Cook
Managing Director
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> n .. Richard M Stephenson To: Michele Graves/e/POSTOFFICE@POSTOFFICE
' ce: Ruth H Barker/e/POSTOFFICE@POSTOFFICE
Eretsestyet 23/12/2009 09:44 Subject: Re: Horizon integrity challenge - Flag Case - Rt Hon Jaquie Smith -
j Fw: Peak Transactions per Second Oct 2008 - May 200915)
Sounds good to me.
Thanks, Richard
Michele Graves
‘rvryrrvv¥er'? Michele Graves To: Richard M Stephenson/e/POSTOFFICE@POSTOFFICE
23/12/2009 09:40 cc: Ruth H Barker/e/POSTOFFICE@POSTOFFICE
° Subject: Re: Horizon integrity challenge - Flag Case - Rt Hon Jaquie Smith -
Fw: Peak Transactions per Second Oct 2008 - May 2009
Good morning
Just for your info, below is the peak time data, which is based on December 2008 figures. Taking the
max of both, I have amended the para as follows:
Horizon is a computerised accounting system which operates in around 12,000 Post Office®
branches. At peak times it is processing up to twenty million transactions per day . 750
transactions per second .
If you are in anyway uncomfortable with this, please let me know by return as I will be passing the
draft to Alan this am.
Kindest regards
Michele Graves ~
Executive Correspondence Manager
Executive Correspondence Team
Post Office Limited
1 1st Floor, Bunhill Row Wing, 148 Old Street, LONDON,
ECIV 9HQ
phone number!
mobile numb
GRO i Postlint
BCR
Confidential Information:
This emall message Is for the sole use of the intended
reciplent(s) and may contain confidential and privileged
Information. Any unauthorised review, use, disclosure or
distribution Is prohibited. If you are not the Intended recipient
please contact me by reply email and destroy all coples of the
original message.
— Forwarded by Michele Graves/e/POSTOFFICE on 23/12/2009 09:36 —-
iw in Duty Manager To: Michele Graves/e/POSTOFFICE@POSTOFFICE
E et sy ‘Sent by: Emma Langfield ce:
tH Subject: Re: for emma Re: Horizon Integrity challenge - Flag Case - Rt Hon
22/12/2009 16:26 aaa - Fw: Peak Transactions per Second Oct 2008 - May
2009;
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, Duty Manager
Hi Michele
My contact in Fujitsu has run last Decembers total transaction volumes for us.
: Tr) Sent by: Emma Langfield
Se eas
2212/2009 16:26
All Transactions
Date
01/12/2008) 17,860,493
02/12/2008} 14,007,774
03/12/2008} 12,615,518
04/12/2008} 12,397,118
05/12/2008} 13,125,746
06/12/2008} 6,906,517]
07/12/2008; 152,362
08/12/2008} 20,026,832
09/12/2008} 16,723,214)
10/12/2008; 14,468,222
11/12/2008} 14,215,764
12/12/2008} 13,502,208}
13/12/2008} 7,136,266
14/12/2008} 170,128
15/12/2008} 21,083,672
16/12/2008} 16,577,121)
17/12/2008 13,767,684)
18/12/2008} 13,004,567]
19/12/2008} 11,558,973
20/12/2008} 6,087,189
21/12/2008} 122,870,
22/12/2008} 13,837,935
23/12/2008} 9,819,968
24/12/2008} 4,028,034]
25/12/2008} 53,327]
26/12/2008 66,207)
27/12/2008} 3,143,933,
28/12/2008} 89,514)
29/12/2008} 11,708,658)
30/12/2008} 9,375,656
31/42/2008} 7,182,058}
These are well within system design limits.
Kind regards
Emma
Live Service Team
Service Delivery
Post Office Ltd
To: Michele Graves/e/POSTOFFICE@POSTOFFICE
cc:
Subject: Re: for emma Re: Horizon integrity challenge - Flag Case - Rt Hon
save - Fw: Peak Transactions per Second Oct 2008 - May
2009)
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To: Duty Manager@POSTOFFICE
To: Duty Manager@POSTOFFICE
co:
Hard Copy To:
Hard Copy ce:
Date: ~ 21/12/2009 13:25 Pe
From: . Michele Graves : .
Subject: for emma Re: Horizon integrity challenge - Flag ¢ Case - Rt Hon aqui ‘Smith - Fw: Peak
Transactions per Second Oct 2008 - May 2009
Hi Emmia : een
Many thanks for the info on transactions per second - however as discussed itis felt that it would heve
particular resonance with the MP if we could say - how many millions of tranactions are processed by
Horizon each day.
1am so sorry, I know that you are under the cosh but if you are able to find the info by tomorrow that
would be great.
Thanks
Michele Graves . -
Executive Correspondence Manager
. Executive Correspondence Team cee cnt ten
+. Post Office Limited . : 2
‘Ast Floor, Bunhill Row Wing, 148 Old Street, LONDON,
ECIV 9HQ _
phone number
mobile number.
BboR
Confidential Information:
This email message Is for the sole use of the intended
reciplent(s) and may contain confidential and privileged
information. Any unauthorised review, use, disclosure or
distribution Is prohibited. If you are not the intended recipient
please contact me by reply email and destroy all coples of the
original message.
— Forwarded by Michele Graves/e/POSTOFFICE on 21/12/2009 13:21 —
ar David X Smith To: Michele GravesielPOSTOFFICE@POSTOFFICE
4 cc:
211212009 08:48 Subject: Fw: Peak Transactions per Second Oct 2008 - May 2009
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“The Royal Mail Group pic is registered in England and Wales. I
Michele ,
You can see from below you are quite safe quoting 750 tps,
Dave
David Smith
Head of Change & IS
Post Office Ltd
3rd Floor, 148 Old Street,LONDON, EC1V SHQ
Mobex:!
—— Forwarded by David X Smith/e/POSTOFFICE on 21/12/2009 08:46 —
David X Gray To: David X Smith’e/POSTOFFICE@POSTOFFICE
7 ce:
Tan22009 17:40 Subject: Fw: Peak Transactions per Second Oct 2008 - May 2009
David
l asked Emma for the latest figures (July is typically a quiet Month). This is October, and itis all
transactions, not just online.
Regards
David Gray
IT Strategy and Architecture Manager
Post Office Ltd
Registered number 4138203. Registered Office at 148 Old Street London EC1V SHQ.
—— Forwarded by David X Gray/e/POSTOFFICE on 17/12/2009 17:39 —
Emma Langfield To: Dave Hulberte/POSTOFFICE@POSTOFFICE, David X
Subject: Peak Transactions per Second Oct 2008 - May 2009
Evening Dave
As requested
Please see attached an indication of all transactions peak per second. The data below is from October
2008 to End of May 2009 which is what we have immediately to hand.
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As you can see average peak is between 500 - 600 transactions per second with a significant peak
experienced over the December period, However although these peaks are per second, they are
averaged out over a rolling 5 minute period and report the busiest As December is the busiest
period please see below peak second values for that month.
01/12/08 723.0067
02/12/08 556.46
03/12/08 515.1033
04/12/08 503.4867
05/12/08 511.8933
06/12/08 538.3833
07/12/08 6.136667
08/12/08 799.2767
09/12/08 654.94
10/12/08 583,93
11/12/08 557.3733
12/12/08 532.38
13/12/08 573.4133
14/12/08 7.83
15/12/08 820.0467
16/12/08 639.5433
17112108 541.4367
18/12/08 516.72
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“ . .
Peak 5 Minutes All Transactions
1000
900 +
& 0;
3
=
= I
= 700
&
‘= 600
om
=
S500
z :
S
s
oe 40
s
=
& 30,
5
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100
0
Pa 2 o o o a 2 2 a 2 a 2
#8 £8 8 €@ 8 @ &€@ &€ § € & B
2 8 @ s = § 8 ee Ee
= = = = = = = = = = = =
o @ & a eo o @ 6 a @ @ a.
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19/12/08 457.66
20/12/08 508.8467
21/12/08 4.356667
22/12/08 599.6133
23/12/08 430.9567
24/12/08 335.1133
25/12/08 0.52
26/12/08 1.313333
27/12/08 272.1267
28/12/08 2.616667
29/12/08 530.8233
30/12/08 405.98
31/12/08 423.3033
My colleague in Fujitsu can provide this year so far if necessary but it will take some time to run the
data. If this is required please let me know and I will make the request.
Kind regards
Emma
Live Service Team
Service Delivery
Post Office Ltd
Postline:!
"Keeping effective channels to market open both today and tomorrow
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= Richard M Stephenson
22/12/2009 18:15
To: Michele Graves/e/POSTOFFICE@POSTOFFICE
ce: Ruth H Barker/e/POSTOFFICE@POSTOFFICE
Subject: J Smith letter
Michele - final revised letter attached. Please let us know if you have any comments.
Thanks, R
j
JaquieSmith2212AS.doc
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T
E alan.cook.
Your Ref: 01090013
Rt Hon Jacqui Smith MP Our Ref:ECT 377/09
House of Commons.
LONDON
SW1A OAA
17 December 2009
Dear Ms Smith
Thank you for your letter of 1 December in relation to one of your constituents, Mr
Julian Wilson and your concems around the Horizon computer system. May I first
apologise for the delay in reply.
Horizon is a computerised accounting system which operates in around 12,000 Post
Office® branches, [IS THERE A MILLIONS PER DAY FIGURE WE CAN USE
HERE? Iprocessing over 750 transactions per second at peak times
Over the years the system has been tested both in and out of criminal and civil court
. - and has not been found wanting. Whilst I recognise that some subpostmasters have wa
> found this difficult to accept, there is no evidence to doubt the integrity of the Horizon
system and we retain absolute confidence in its’ robustness and reliability.
Our ongoing monitoring and control processes mean that any issues in a ‘live’
operation are quickly identified and resolved, and ensure that should part of the
system or equipment fail, the integrity of the accounting records is maintained.
The Horizon system provides a transaction tog which sets out details such as date
and time, the name, volume and value of transactions. If an error takes place these
transaction logs and other system reports can be used to pinpoint and correct this.
However, the Horizon system and the processes around it are dependent on the
staff in branch entering items accurately into the system.
Moving forward, as with any business we constantly look to how we can operate more
cost effectively but at the same time update and improve our systems and processes.
We are currently in the process of implementing a new version of Horizon with the
Tain aim of significantly reducing running costs that has been achieved by the
negotiation of a new contract. The new system called Horizon Online™ has been
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designed with extensive input from subpostmasters to ensure it is also easier to use.
The preparation for the roll out of new counter software is at an advanced stage and
completion is expected to be by the end of April,
The relationship between Post Office Limited and the thousands of independent
business people who operate a Post Office® service is of paramount importance to us
and I fully agree that it is vital that our subpostmasters and mistresses are provided
the highest level of support. I believe that the systems we have in place deliver this
and remain fully satisfied that the system and processes around Horizon offer a
very high level of security and resilience.
I trust the above information has allayed your concerns but should you have any
further questions, then please do let me know.
Yours sincerely
Alan Cook
Managing Director
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Ay
Ruth H Barker To: Michele Graves/e/POSTOFFICE@POSTOFFICE
; ce: Richard M Stephenson/elPOSTOFFICE@POSTOFFICE
2211212009 16:37 Subject: Re: Fw: J Smith Ltr)
Just looking at it now - think it does help as it goes someway to address Mr Wilton’s allegation. Going
to show my ignorance what does EPOS stand for extactly?
Thanks
Ruth
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”
“ORT Michele Graves To: Ruth H Barker/e/POSTOFFICE@POSTOFFICE
; ce: Richard M Stephenson/e/POSTOFFICE@POSTOFFICE
22/12/2008 16:06 Subject: Re: Fw: J Smith Ltr)
Hi Ruth
Re Richard's request below that we put in something to we say we give more detail than the
subpostmaster suggests, would this suffice do you think?
The Horizon system and the processes around it are dependant on staff in the branch working
accurately and in accordance with operating instructions. The system provides a transaction log
which sets out each transaction the date and time it was carried out, the name, volume and value of
the transaction. Itis possible from transaction logs and other system reports to pinpoint some errors
and correct these e.g. cash entered as cheque. Other errors will be identified by back office
processes. If the cash received or paid out is incorrect and the correct value of the transaction is
entered onto the system then whilst the daily cash declaration will identify that an error has been
made neither the system or back office routines will be able to identify which transaction gave rise to
the difference. In this respect the Horizon system is no different from any other EPOS system.
Thank you
Michele Graves ~
Executive Correspondence Manager POST
Executive Correspondence Team OFFICE
Post Office Limited
© 1st Floor, Bunhill Row Wing, 148 Old Street, LONDON,
ECIV SHQ
Confidential Information:
This email message Is for the sole use of the intended
reciplent(s) and may contain confidential and privileged
Information. Any unauthorised review, use, disclosure or
distribution Is prohibited. If you are not the Intended recipient
please contact me by reply email and destroy all coples of the
original message.
Richard M Stephenson
Richard M Stephenson To: Michele Graves/e/POSTOFFICE@POSTOFFICE
SS a o112/2009 15:51 ce: Ruth H Barkerfe/POSTOFFICE@POSTOFFICE
EBS " Subject: Fw: J Smith Ltr
Hi
Amended letter attached. Still need clarification on the number of transactions and also can we say
we give more detail than the subpostmaster suggests?
Mary is ok with this. I'm just off to a meeting now but please speak to Ruth if you have any questions.
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«.
~
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ae MStephenson To: Michele Graves/e!POSTOFFICE@POSTOFFICE
BS ‘ ce: Ruth H BarkerlelPOSTOFFICE@POSTOFFICE
ESE 22/12/2000 15:51 Subject: Fw: J Smith Ltr
2)
J Sith MP21T208S.doe
Hi
Amended letter attached. Still need clarification on the number of transactions and also can we say
we give more detail than the subpostmaster suggests?
Mary is ok with this. I'm just off to a meeting now but please speak to Ruth if you have any questions.
Thanks,
R
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as
. .and.has not been found wanting. Whilst I recognise that some subpostmasters have _ . ee
i Smi Your Ref: 01090013
Rt Hon Jacqui Smith MP Our Ref:ECT 377/09
House of Commons
LONDON
SW1A OAA
17 December 2009
Dear Ms Smith
Thank you for your letter of 1 December in relation to one of your constituents, Mr
Julian Wilson and your concerns around the Horizon computer system. May I first
apologise for the delay in reply.
Horizon is a computerised accounting system which operates in around 12,000 Post
Office® branches, [IS THERE A MILLIONS PER DAY FIGURE WE CAN USE
HERE? ]processing over 750 transactions per second at peak times
Over the years the system has been tested both in and out of criminal and civil court
found this difficult to accept, there is no evidence to doubt the integrity of the Horizon - . .
system and we retain absolute confidence in its’ robustness and reliability.
All new software releases on Horizon are subject to rigorous testing prior to going
live in order to ensure the accuracy of the accounting processes. Our ongoing
monitoring and control processes mean that any issues in a ‘live’ operation are
quickly identified and resolved, and ensure that should part of the system or
equipment fail, the integrity of the accounting records is maintained.
Moving forward, as with any business we constantly look to how we can operate more
cost effectively but at the same time update and improve our systems and processes.
We are currently in the process of implementing a new version of Horizon with the
main aim of significantly reducing running costs. The new system called Horizon
Ontine™ has been designed with extensive input from subpostmasters to ensure it is
also easier to use. The preparation for the roll out of new counter software is at an
advanced stage and completion is expected to be by the end of April,
The relationship between Post Office Limited and the thousands of independent
business people who operate a Post Office® service is of paramount importance to us
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and I fully agree that it is vital that our subpostmasters and mistresses are provided
the highest level of support. I believe that the systems we have in place deliver this
and remain fully satisfied that the system and processes around Horizon offer a
very high level of security and resilience.
I trust the above information has allayed your concerns but should you have any
further questions, then please do let me know.
Yours sincerely
Alan Cook
Managing Director
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Richard M Stephenson To: Michele Graves/e/POSTOFFICE@POSTOFFICE
. . ce: Ruth H Barkerle/POSTOFFICE@POSTOFFICE
2112/2009 13:48 Subject: Re: J Smith letter - redraft for approval)
Thanks Michele. I am happy with this and am trying to get Mans sign off. 1 would prefer the xx
millions of transactions per day and up to 750 per second at peak times figures to both be used if
possible.
Ruth - can you have a quick look please?
We don't refer to the specific cases Ms Smith mentions but I think this.is ok as we can't get into the
specifics of individual cases,
l imagine she will write again.
The 11000 figure does not seem right - there cant be that many independents in a network of 12000?
Oram I missing something?
Thanks, R
Michele Graves
anaes tadad Michele Graves To: Richard M Stephenson/e/POSTOFFICE@POSTOFFICE
+ .- ce: Ruth H Barker/eIPOSTOFFICE@POSTOFFICE
AG» 22/12/2009 13:14 Subject: Re: J Smith letter - redraft for approval
Hi Richard
Me again - sorry.
Are you in a position to let me have your final feedback - Alan would like the reply to go out before
Christmas and itis the last day in the office for both Alan and I tomorrow.
Regards
Michele Graves -
Executive Correspondence Manager POST.
Executive Correspondence Team OFFICE
Post Office Limited
1st Floor, Bunhill Row Wing, 148 Old Street, LONDON,
EC1V 9HQ
@ phone number!
x
Confidential Information:
This email message Is for the sole use of the intended
recipient(s) and may contain confidential and privileged
information. Any unauthorised review, use, disclosure or
distribution is prohibited. If you are not the intended recipient
please contact me by reply emall and destroy all coples of the
original message.
Hi Richard
Many thanks - yes I was aware of the reply to Michael Rudkin as I pretty much wrote most of it but just
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bennnag Michele Graves To: Richard M Stephensonle/POSTOFFICE@POSTOFFICE
; ce: Ruth H BarkerlelPOSTOFFICE@POSTOFFICE
211212008 13:50 Subject: Re: J Smith letter - redraft for approvallS)
Hi Richard
Many thanks - yes I was aware of the reply to Michael Rudkin as I pretty much wrote most of it but just
wasn't sure if it was suitable to use here.
have made the suggested amends and added some comments in blue, to answer your own in red.
Re your amends on my first draft, page 2, the replacement para starting ' All new software’ was
already included in para 2 of the first page, so have removed and left at the start - I think it reads ok
but fresh eyes and all that.
Many thanks again for all of your help - 1 know how busy you are.
If you could let me have final approval, I will pass to Alan for sign off.
Kindest regards,
eae
ECT 377-03 Smith Jacqui MP v2.doc
Michele Graves ~
Executive Correspondence Manager POST
Executive Correspondence Team OFFICE
Post Office Limited
<3 1st Floor, Bunhill Row Wing, 148 Old Street, LONDON,
EC1V SHQ
@ phone number!
Py
< .mobile number:
s
Confidential Information:
This email message Is for the sole use of the intended
reciplent(s) and may contain confidential and privileged
information. Any unauthorised review, use, disclosure or
distribution is prohibited. If you are not the intended recipient
please contact me by reply email and destroy all coples of the
original message.
Richard M Stephenson
_Richard M Stephenson To: Michele Graves/e/POSTOFFICE@POSTOFFICE
cH 8 cc: Ruth H Barker/e/POSTOFFICE@POSTOFFICE
21/12/2009 13:04 e
fa Subject: J Smith letter
Michele - see attached. I am heading off to a meeting now but Ruth is around to chat. We have made
some comments throughout the letter in caps, I have also sent you an email sent by Alan recently
which has some useful lines. We have used one of them to replace a para in the letter. We need to
be careful about paragraphs talking too much about the system failing so we have changed this. Have
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<
a look and see what you think. I do need to speak to Mary about this ( have already but need to
review final letter with her) so can you revise this letter and send back to me? I am sure Mary will be
=a
happy but we do need to double check with her. Thanks, R J Smith MP211208RS.doc
Fad
! Richard Stephenson
Director of Commercial Public Relations
Royal Mail Group
100 Victoria Embankment
i London
: EC4Y 0HQ
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Your Ref: 01090013
Our Ref:ECT 377/09
Rt Hon Jacqui Smith MP
House of Commons
LONDON
SW1A OAA
24 December 2009
Dear Ms Smith
Thank you for your letter of 1 December in relation to one of your constituents, Mr
Julian Wilson and your concerns around the Horizon computer system. May I first
apologise for the delay in reply.
Horizon is a computerised accounting system which operates in around 12,000 Post
Office® branches, [IS THERE A MILLIONS PER DAY FIGURE WE CAN USE HERE?]
processing over 750 transactions per second at peak times. RICHARD THIS FIGURE IS
CONFIRMED AS CORRECT. I HAVE ASKED AGAIN FOR A DAILY TRANSAX FIGURE
BUT MAY NOT GET IN TIME TO INCLUDE - IF SO ARE WE HAPPY TO GO WITH PER
. SECOND TIMES? All new software releases on Horizon are subject to rigorous testing
~ priorto going live in order to ensure the accuracy of the accounting processes. Our
ongoing monitoring and control processes mean that any issues in a ‘live’ operation
are quickly identified and resolved, and ensure that should part of the system or
equipment fail, the integrity of the accounting records is always maintained.
Over the years the system has been tested both in and out of criminal and civil court
and has not been found wanting. Whilst I recognise that some subpostmasters have
found this difficult to accept, there is no evidence to doubt the integrity of the Horizon
system and we retain absolute confidence in its’ robustness and reliability.
Moving forward, as with any business we constantly look to how we can operate more
cost effectively but at the same time update and improve our systems and processes.
We are currently in the process of implementing a new version of Horizon, called
Horizon Online™. The preparation for the roll out of new counter software is at an
advanced stage and completion is expected to be by the end of April 2010. The new
system has been designed with extensive input from subpostmasters and other users
and will increase efficiencies and enhance the role of the subpostmaster.
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ac
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In 2010/11 alone, the new system will also save Post Office Limited £56m due to a
newly negotiated contract.
The relationship between Post Office Limited and the 11,000 [IS THIS FIGURE
CORRECT?] RICHARD: THIS WAS USED LAST WEEK BY THE WELSH EXT RELS TEAM
SO 1 HAVE TAKEN AS CORRECT, I HAVE ASKED WHERE THEY GOT IT FROM BUT
THEY CANNOT GET BACK UNTIL TOMORROW or so independent business people who
operate a Post Office® service is of paramount importance to us and I fully agree that
it is vital that our subpostmasters and mistresses are provided the highest level of
support. I believe that the systems we have in place deliver this.
I trust the above information has allayed your concems but should you have any
further questions please do let me know.
Yours sincerely
Alan Cook
~ Managing Director we nee .
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; Richard M Stephenson To: Michele Graves/e/POSTOFFICE@POSTOFFICE
«saa, cc: Ruth H Barker/e/POSTOFFICE@POSTOFFICE
21/12/2009 13:04 Subject: J Smith letter
Michele - see attached. I am heading off to a meeting now but Ruth is around to chat. We have made
some comments throughout the letter in caps. I have also sent you an email sent by Alan recently
I which has some useful lines. We have used one of them to replace a para in the letter. We need to
be careful about paragraphs talking too much about the system failing so we have changed this. Have
a look and see what you think. I do need to speak to Mary about this (I have already but need to
review final letter with her) so can you revise this letter and send back to me? I am sure Mary will be
[a
=
I happy but we do need to double check with her. Thanks, R J Smith MP21120RS.doc
I Richard Stephenson
Director of Commercial Public Relations
Royal Mail Group
100 Victoria Embankment
London
EC4Y 0HQ
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era Your Ref: 01090013
Rt Hon Jacqui Smith MP Our Ref:ECT 377/09
House of Commons
LONDON
SW1A OAA
17 December 2009
Dear Ms Smith
Thank you for your letter of 1 December in relation to one of your constituents, Mr
Julian Wilson and your concems around the Horizon computer system. May I first
apologise for the delay in reply. .
Horizon is a computerised accounting system which operates in around 12,000 Post
Office® branches, [IS THERE A MILLIONS PER DAY FIGURE WE CAN USE
HERE? ]processing over 750 transactions per second at peak times. All new software
Teleases are subject to rigorous testing before they go live in order to assure the
accuracy of the accounting processes. The system and the processes around it offer
-. anextremely high level of security and esilience WITH SIGNIFICANT FAILSAFE .
+ -PROCEEDURES TO ENSURE [REMOVE : and are designed to ensure that should part
of the system or equipment fail, which all systems do from time to time,] the integrity
of the accounting records are ALWAYS maintained.
Over the years the system has been tested both in and out of criminal and civil court
and has not been found wanting. Whilst I recognise that some subpostmasters have
found this difficult to accept, there is no evidence to doubt the integrity of the Horizon
system and we retain absolute confidence in its’ robustness and reliability.
Moving forward, as with any business we constantly look to how we can operate more
cost effectively but at the same time update and improve our systems and processes.
We are currently in the process of implementing a new version of Horizon, called
Horizon Online™. The preparation for the roll out of new counter software is at an
advanced stage and completion is expected to be by the end of April, [REMOVE aside
from a few offices that may be temporarily closed, for example for refurbishment
work. The main benefit of the new system is a significant reduction in running costs
compared to the old system under the previous contract with the supplier]. THE NEW
SYSTEM WILL INCREASE EFFICIENCIES AND ENHANCE THE ROLE OF THE
SUBPOSTMASTER. In 2010/11 ALONE, THE NEW SYSTEM WILL ALSO SAVE POST
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ween . . Page 2 of 2
OFFICE LTD [this saving will be] £56m DUE TO A NEWLY NEGOTIATED CONTRACT.
The new system will also make it easier for users and has been designed with
extensive input from subpostmasters and other users.
[REMOVE PARAGRAPGH As with the current system, the design ensures that
accounting integrity is ALWAYS maintained EVEN when A system failure occurS.
Significant amounts of testing effort are devoted to proving that not only does the
system fail in a way that enables integrity to be maintained but also to ensure that the
system alerts those responsible for its maintenance when a failure occurs.]
REPLACE WITH : All new software releases on Horizon are subject to rigorous testing
prior to going live in order to ensure the accuracy of the accounting processes. Our
ongoing monitoring and control processes mean that any issues in a'live' operation
are quickly identified and resolved, and ensure that should part of the system or
equipment fail, the integrity of the accounting records is maintained,
The relationship between Post Office Limited and the 11,000 [IS THIS FIGURE
CORRECT?] or so independent business people who operate a Post Office® service is of
paramount importance to us and I fully agree that it is vital that our subpostmasters
and mistresses are provided the highest level of support. I believe that the systems we
have in place deliver this.
~ + [trust the above information has allayed your concems but'should'you have any =”
“further questions, then please do let me know.
Yours sincerely
Alan Cook
Managing Director
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© “Bowtie. .-Richard M Stephenson. To: Michele Graves/e/POSTOFFICE@POSTOFFICE
ES : ce: Ruth H BarkerlefPOSTOFFICE@POSTOFFICE
SSS 222008 1258 Subject: Fw: Michael Rudkin email - new draft for approval
Michele -'see below for background info - and sending letter in another email now
— Forwarded by Ruth H Barker/e/POSTOFFICE on 17/12/2009 18:14 —
‘Alan Cook To: Hayley Fowell/e/POSTOFFICE@POSTOFFICE
6/11/2009 12:31 ce: Michele Graves/e/POSTOFFICE@POSTOFFICE, Paula
Y * Vennells/e/POSTOFFICE@POSTOFFICE, Richard M
‘Stephenson/e/POSTOFFICE@POSTOFFICE, Ruth H
atkerls!POSTOEFICE@POSTOFFICE, “Tracy Abberstein
Subject: Re: Michael Rudkin email - new draft for approval)
This is good - thank you
Tracy as I am on blackberry can you send from my email cabinet please
Thanks ,
Alan
steneeeneeseees
Alan Cook
Managing Director
Pe
(stenanesenente I
Message sent via blackberry ts Cr eta seg geese ae
Hayley Fowell
-— Original Message ——
From: Hayley Fowell
Sent: 06/11/2009 11:58 GMT
To: Alan Cook
Cc: Michele Graves; Paula Vennells; Richard Stephenson; Ruth Barker
Subject: Michael Rudkin email - new draft for approval
Hi Alan,
Thank you for your feedback. We have redrafted the email to ensure a more supportive tone and have
included further detail to support our stance. Please do let me know if this is acceptable and if so,
how you would like to send.
1 apologise for the delay in getting this to you and very much appreciate your help with turning this
around quickly as I know you are very busy.
Regards,
hayley
DRAFT RESPONSE TO MICHAEL RUDKIN - VERSION 2
Dear Michael
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rs
Thank you for your email of 15 October and for bringing to my attention the article in Convenience
Store magazine and the meeting being held on Sunday 8 November in Fenny Compton. My apologies
for the delay in reply.
We are aware of the recent interest being taken in the robustness of the Horizon system by some
external parties. I am not sure exactly why this is as the system has been in place for around ten
years, successfully recording millions of transactions each day, and has proved time and time again to
be robust and fit for purpose.
Where concerns have been raised about Horizon or the computer equipment, they have been taken
extremely seriously and have been thoroughly investigated. I recognise that some people may find it
difficult to accept but no evidence has been found pointing to any fault with the system or technology.
All new software releases on Horizon are subject to rigorous testing prior to going live in order to
ensure the accuracy of the accounting processes. Our ongoing monitoring and control processes
mean that any issues in a ‘live’ operation are quickly identified and resolved, and ensure that should
part of the system or equipment fail, the integrity of the accounting records is maintained
In summary, we remain fully satisfied that the system and the processes around it offer a very high
level of security and resilience. We are completely confident that the system is capable of handling
the financial services transactions undertaken at our branches, and that it will continue to support any
new services that we plan to introduce in the future.
Thank you for your support on this issue - itis much appreciated. I do hope that you feel you can now
speak to your NFSP Branch and Region with confidence at Sunday's meeting.
Kind regards
Alan
Alan Cook
Alan Cook To: Paula Vennells/e!POSTOFFICE@POSTOFFICE, ‘Ruth H
% Barker/e/POSTOFFICE@POSTOFFICE
06/11/2009 07:25 ce: Hoyley Fowell/POSTOFFICE@FOSTOFFICE, Michele
esi ‘ichard Stephenson"
Subject: 5)
Hayley/Michele
Now I see this it all comes back to me. we definitely owe him a fuller response than currently drafted.
He is offering to help diffuse a tricky issue. We need to give him more if he is going to stand up and
defend us -
Also we cannot apologise for the delay due to me holiday - that was 2 weeks ago!
We seem to have left this until the last minute but clearly we now need to get this one done today
Alan
teneneneenenees
Alan Cook
Managing Director
Post Office Ltd
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<
thesennseeseeee
Message sent via blackberry
Paula Vennells
—— Original Message —-
From: Paula Vennells
Sent: 06/11/2009 06:27 GMT
To: Ruth Barker
Ce: Hayley Fowell; Michele Graves; Alan Cook
Subject: Re: Contracts
Ruth, the attachment needs to be in email format pls - Alan and I are out ofthe office and so need.to
view it on Blackberrys.
Also, we need the original email; what was attached looked more like a powerpoint of a press cutting.
Thx Paula
Ruth H Barker
-—— Original Message ——
From: Ruth H Barker
Sent: 05/11/2009 17:52 GMT
To: Paula Vennells
Cc: Hayley Fowell
Subject: Fw: Contracts
Hi Paula
Hayley's asked me to forward you the original email from Michael Rudkin
Any questions please do not hesitate Hayley or myself.
Ruth
— Forwarded by Mary Fagan/e/POSTOFFICE on 16/10/2009 15:41 ——
Alan Cook To: Mary Fagan/e/POSTOFFICE@POSTOFFICE n
% ce: ET, David X Smith/e/POSTOFFICE@POSTOFFICE, Mat
1511072008 15:25 Butley/elPOSTOFFICE@POSTOFFICE
Subject: Fw: Contracts
Mary
I know you are busy right now but in Richards absence can you get someone to see what we can
about this developing situation outlined below?
For some strange reason there is a steadily building nervousness about the accuracy of the Horizon
‘system and the press are on it as well now
It is the more strange in that the system has been stable and reliable for many years now and there is
absolutely no logical reason why these fears should now develop
My instincts tell that, in a recession, subbies with their hand in the till choose to blame the technology
when they are found to be short of cash
Bizarrely the author of the email below was a very senior postmaster in the Fed who I know well but
who's wife was found to be defrauding us and we have prosecuted
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2
=“
We should therefore be careful of approaching him for further info without talking to Paula first
Not sure what we can do but I do see this as an escalating and serious challenge - particularly as a
new version of Horizon is due to go live in February!
Thanks
Alan
Alan Cook
Managing Director
Post Office Ltd
— Forwarded by Alan Cook/e/POSTOFFICE on 15/10/2009 15:16 —-
To: "Alan Cook" +
cc:
L ouuned Subject: Contracts
15/10/2009 13:57
Dear Alan
See attachment!!!
I presume you have already seen the article in the convenience store magazine.
My question to the business is;
a ae Istthis article likely to have any-impact-on the contracts we already have with our existing
banking partners. Will our prospects of becoming a Post Bank be delayed if our clients start
to questions Horizons abilities and is it fit for purpose for the foreseeable future?
The reason for my question is, a Horizon pressure group has formed and they are to meet on Sunday
8" November 09 at Fenny Compton Hall in the Midlands and I wish to keep a balanced view and
present this to my NFSP Branch and Region before anyone attends this meeting. This should also
minimize adverse publicity to our industry which is already receiving enough bad press at the
moment. Currently the BBC, Panorama and Watch Dog researches are digging the dirt here in
Leicestershire.
hope my request is not an imposition on your time or deemed as impertinent.
Kind Regards
Michael Rudkin
Ibstock Post Office & Newsagents
118/120 High Street
Lei
[attachment "convenience store Hindocha.ppt" deleted by Paula Vennells/e/POSTOFFICE]
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soso
«ers Your Ref: 01090013
Rt Hon Jacqui Smith MP Our Ref:ECT 377/09
House of Commons
LONDON
SW1A OAA
17 December 2009
Dear Ms Smith
Thank you for your letter of 1 December in relation to one of your constituents, Mr
Julian Wilson and your concerns around the Horizon computer system. May I first
apologise for the delay in reply.
Horizon is a computerised accounting system which operates in around 12,000 Post
Office® branches, processing over 750 transactions per second at peak times. All new
software releases are subject to rigorous before they go live in order to assure the
accuracy of the accounting processes. The system and the processes around it offer
an extremely high level of security and resilience and are designed to ensure that
should part of the system or equipment fail, which all systems do from time to time,
the integrity of the accounting records are maintained.
Over the years the system has been tested both in and out of criminal and civil court S
and has not been found wanting. Whilst I recognise that some subpostmasters have
found this difficult to accept, there is no evidence to doubt the integrity of the Horizon
system and we retain absolute confidence in its’ robustness and reliability.
Moving forward, as with any business we constantly look to how we can operate more
cost effectively but at the same time update and improve our systems and processes.
We are currently in the process of implementing a new version of Horizon, called
Horizon OnLine.” The preparation for the roll out of new counter software is at an
advanced stage and completion is expected to be by the end of Aprilaside from a few
offices that may be temporarily closed, for example for refurbishment work. The main
benefit of the new system is a significant reduction in running costs compared to the
old system under the previous contract with the supplier. In 2010/41 this saving will
be £56m. The new system will also make it easier for users and has been designed
with extensive input from subpostmasters and other users.
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As with the current system,the design ensures that accounting integrity is maintained
when system failures occur. Significant amounts of testing effort are devoted to
proving that not only does the system fail in a way that enables integrity to be
maintained but also to ensure that the system alerts those responsible for its
Taintenance when a failure occurs.
The relationship between Post Office Limited and the 11,000 or so independent
business people who operate a Post Office® service is of paramount importance to us
and I fully agree that it is vital that our subpostmasters and mistresses are provided
the highest level of support. I believe that the systems we have in place deliver this.
I trust the above information has allayed your concems but should you have any
further questions, then please do let me know.
Yours sincerely
Atan Cook
Managing Director
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