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Dear Mr Byers, 2 Mol , i
HORIZON Me
On Monday the Post Office Board discussed the Horizon programme.
The Treasury review of Horizon began almost exactly a year ago. Two months ago we
concluded lengthy and complex discussions with ICL and BA which we thought would be
the way forward. Now, as we understand it, there are discussions taking place with ICL
about, yet again, a new set of proposals, This continuing delay in being able to arrive at a
conclusion is a major source of concem to the Board, especially as The Post Office is
being excluded from these latest discussions. This last point in particular was raised by
our Non-Executive Directors and is regarded as unacceptable in terms of corporate
governance. Directors simply are not fulfilling their duties in allowing the ongoing
investment we are making on this project, yet having no apparent control over, or even
input to, the current commercial discussions that vitally affect us.
You will of course be fully aware not only of the vital importance of the Horizon
programme to the firture of the post office network, but also of its strategic significance to
The Post Office as a whole. We are currently in the impossible position of being aware
that some form of new proposals are being considered and discussed with ICL and yet, as
a party to the contracts with ICL Pathway and thus bearing the accountability for their
commercial impact on The Post Office, we are being kept at bay. Furthermore, the legal
risks which surround the tabling of alternative proposals to ICL are considerable, and it
should be a concern to us al] that, as J understand it, officials from HM Treasury - who
unlike us are not accountable for the contracts with ICL - are operating unilaterally with
IcL.
IN STRICTEST CONFIDENCE
BEIS0000383
BEIS0000383
CRETARY OF STATE OFFICE 0, 731 P.2 32
IN STRICTEST CONFIDENCE
The Post Office Board strongly believes that a clear-cut decision must be taken now to go-
_thead with Horizon and the Benefits Payment Card to end this period of uncertainty which
has reached an indefensible level. If further proposals must be considered, then we need
to be involved. Our criteria to support any alternative which may be tabled will be
focused on the commercial impact on the Post Office. The Board is accountable for the
furure commercial well-being of The Post Office, and the Horizon programme is vital to
us.
Dr Neville C Bain
IN STRICTEST CONFIDENCE