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1 17/09 '98 THU 09:30 FAX GR Goo
& ResTRiCTE) 5
16" September 1998
im
Rt Hon Stephen Byers MP Hs a
Chief Secretary to the Treasury Hecdoarg me —_-
Treasury Chambers, her MACHA ye cr cc ftir haker (or]
Parliament Street, Decl Nu SBlacl
London. M, d
SWIP 3AG F Wake an.
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Dear Minister, Au ick te
BENEFITS AGENCY/POST OFFICE COUNTERS AUTOMATIO) kK )
PROJECT cir
Thank you for your letter dated 15" September 1998. We reject the {\\¢ Oshome hayal (3
I I allegation that ICL Pathway is in breach of contract. Indeed you will be
I I aware that we have already taken serious exception to the attempts by the
DSS to establish this position in their correspondence to us.
However, we continue to believe that this programme offers major long
term benefits to both the Benefits Agency and the Post Office as well as
wider Government aspects. We are, therefore, keen to see this project
continue, and are prepared, without prejudice to our legal rights, to agree
to the one month period of discussion for the purpose and on the terms
which you suggest.
We are satisfied with the terms of reference for the independent adviser
and will certainly give him our full co-operation.
Regarding the conditions for opening discussion mentioned in paragraph 6
of your letter, we confirm that we will accept them for the relevant period
of one month. .
We would make the point that paragraphs 4 and 5 of your letter cause us
some concern. Whilst, of course, any adjustments to the contract must be
compatible with procurement law, we have already sent to the parties and
the Treasury our legal opinion that a commercial settlement of our Keith Todd
differences will cause no difficulty in this respect. Chief Executive
So far as the other matters raised in those paragraphs are concerned, in our 1 Tedd
. — ‘ ji ICL pic
view it is not helpful to the process of full and frank discussion and 94 Finsbsiry Square
negotiation to set any preconditions as to the compe of acommercial Londo, S
settlement. Clearly, these are matters that have t6- fscksed
the negotiations in order to reach a settlement. DICK HOF
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¥~ 5 p 1998
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Registered Ofice
445, “S25 Finsbury Square
Ciis ae London EC2 10S
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BEIS0000283
BEIS0000283
17/08 ‘98 THU 09:30 FAX! IcIA PATHWAY Moo2z
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T look forward to receiving details from you of the independent advisor
and the time and place for commencement of discussions so that we can
move this programme forward in the best Possible way for everyone
concemed. I shall be asking Richard Christou, ICL commercial group
director, to lead the discussions on my behalf, and he will be supported by
John Bennett, managing director, ICL Pathway.
_Yours sincerely,
fr P Keith Todd
ce: Alistair Darling DSS ©
f Peter Mandelson DTI
John Roberts Post Office
Peter Mathison Benefits Agency
1 _