HORIZON WORKING GROUP MEETING: 13 DECEMBER 2000 AT 11.30,
DTI CONFERENCE CENTRE, 1 VICTORIA STREET, SW1
AGENDA
1.
iz:
6.
Chairman’s introduction and welcome;
Lord Whitty’s presentation on electronic delivery of services by local
government authorities;
Questions and Discussion on the presentation;
Horizon roll out update (Post Office);
PIU implementation update (Mr Johnson);
Any other business.
7 December 2000
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x400.txt
Dear Mary,
Thank you for your message and the agenda for the Horizon Group M
eeting
being held on Wednesday, 13th December.
I thought it might be helpful if I recorded Terry Deegan's apolog
ies with
you, which Bill Rose was aware of at the time the meeting date was
being
set. Terry has gone to Australia over the Christmas and New Year
season and
will not be returning until 8th January. It would be much appreci
ated if
you could relay Terry's apologies, in advance, so that Alan is awa
re that
Terry is unable to be present this time.
Whilst writing, may I take this opportunity to wish you and your
family a
"Very Happy Christmas". I look forward to working with you in the
New Year.
Yours sincerely,
Jennifer Allen
SPS to Terry Deegan
g Om Original Message-----
> From: Spoor Mary (CGBPS) [SMTP{ GRO
> Sent: 11 December 2000 17:04
> To: Allen Jennifer; Baker Colin; Deegan Terry; Denton Diana; H
arris
> Tony; Hodgson Derek; Johnson, MPST; Kearns Tony; Lovett Dorothy;
Miller ‘
> David; Payton Matthew; stuart. sweetman}
ad, Mike
Whitehe
> Ces ‘Waltho Dave'; 'Jenni Borg'; 'Susannah Swain'
> Subject: 13 November: Horizon Working Group
>
> Please find attached below a copy of the agenda, as approved by
S sonnson, for the meeting on Wednesday.
: Mary Spoor
<< File: ATT00389.ATT >>
Page 1
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Sp « Mary (CGBPS)
From: stuart.sweetmai
Sent: 08 December
To: Mary.Spoori
Ce: Derek. Davis.
basil. larkinsf
“k; graham)
Subject:
This week the DSS Payment Modernisation Team led by Sarah Graham (Director of
Corporate Modernising Government Payments and Partnership ) spent 24 hours with
a Post Office team led by myself and Basil Larkins looking at a wide range of
Post Office capabilities ( mails, counters and call centre). The objective was
to strengthen the relationships between the two organisations - very successful.
One of the actions I agreed to take away was to propose that the DSS team come
to an HWG early in the new year to update the Group on DSS ACT migration plans
and how they are being integrated with our plans for Universal Banking Services.
Could you please brief Alan Johnson that ! will be proposing this at the HWG
next week.
Thanks
Stuart
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Ss or Mary (CGBPS)
From: Spoor Mary (CGBPS)
Sent: 06 December 2000 13:35
To: ‘Jenny Borg’
Ce: Whitehead Mike (Mr MJ)
Subject: 13 December: Lord Whitty's attendance at the Horizon Working Group
To:
Jenny Borg
We spoke briefly. I am not sure how clear we have been on what Lord Whitty is required to do on the 13th.
Alan Johnson has invited Lord Whitty to the Working Group next week to speak on the following points:
1) How local government is making innovative use of new technology to deliver electronically services and information;
2) Scope for the Post Office as a possible strategic partner with local authorities to assist in the delivery of services
within the Government General Practitioner scheme;
3) Lord Whitty's role as an e-Government Champion;
4) A broad outline of DETR plans for e-Government by 2005.
When Mr McCartney the e-Government Minister at the Cabinet Office suggested the Working Group meet Lord
Whitty, I understand his main concern was that organisations do not necessarily think of the Post Office in terms of a
strategic partnership for electronic deliver of services. Lord Whitty's advice on how best to go forward with the local
authorities would be useful.
The meeting is scheduled to last an hour, with other items on the agenda so I would expect that Lord Whitty (and
Officials) would be aiming to speak for about 15 minutes. Please note that these meetings are informal.
I attach for background my e-mail to PS/Lord Whitty,
E
18 December Horizon
Working Gr,
Mary Spoor
Postal Services Directorate
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So Mary (CGBPS) _
— = =
From: Spoor Mary (CGBPS)
Sent: 29 November 2000 17:16
To: ‘Susannah Swain’
Ce: Whitehead Mike (Mr MJ)
Subject: 13 December: Horizon Working Group on computerisation of the Post Office Network
To:
PS/Lord Whitty
You asked me to let you have background on the invitation extended to Lord Whitty to attend the next meeting of the
Horizon Working Group on 13 December. Cabinet Office Minister, lan McCartney, suggested your Minister's name in
his capacity as the DETR e-government Champion.
Alan Johnson, Minister for Competitiveness, chairs the Working Group which monitors the Horizon project to
computerise the Post Office counters network. Its members comprise representatives from the communications’
unions, the Post Office and the National Federation of SubPostmasters.
Government has contributed £500 million to the equipment installation programme which is progressing well. Project
completion is on schedule for Spring 2001 when the whole network, comprising 18.000 post offices will be operating
with the new equipment. The computer system will provide the network with an automated platform on which there is
the potential to build and provide services. The Working Group is also responsible for identifying and promoting new
areas of work for the network.
On publication in June of the Cabinet Office PIU report on the Post Office (Counter Revolution Modernising the Post
Office Network), the Government accepted all 24 recommendations. One of these concerns the development of the
role of sub post offices as local centres for information and advice. The proposal is that post offices fulfil the role of
Government General Practitioner (GGP) to become one stop or first stop shops for the citizen who is seeking advice
on government services and those of the voluntary sector. It is envisaged that through use of the Horizon platform,
appropriate computer software and Internet kiosks, electronic databases of local and central government and other
agencies such as NHS Direct Age Concern and CAB would be accessible at the local post office. In taking forward
this proposal, the Post Office has produced a business case and ring fenced funding from the Spending Review is
being made available for the purpose of trialling the GGP concept.
In the context of updating on GGP, the Horizon Working Group invited lan McCartney to speak to them on e-
Government, the Cabinet Office co-ordinating role and UK Online. Mr McCartney suggested then, that Lord Whitty
could also contribute to the information of the Group in view of his position of Ministerial Champion.
In addition, Mr McCartney mentioned that he understood some local government bodies were using new technology
innovatively to deliver services and information and that DETR may wish to consider scope there for collaboration with
the Post Office on plans for GGP.
I understand that Mr McCartney hopes to attend the meeting of the Group on 13 December.
Please let me know if more information is required.
Mary Spoor
Postal Services Directorate
DTI
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x400.txt
Thank you, Mary.
Regards
Polly
> From: Spoor Mary (CGBPS) [SMTP;j GRO i
> Sent: Tuesday, December 05, 2006°5:00 pM
> To: Allen Jennifer; Baker Colin; Deegan Terry; Denton Diana; H
arris
> Tony; Hodgson Derek; Johnson, MPST; Kearns Tony; Lovett Dorothy;
Miller
> David; Payton Matthew; Sweetman Stuart; Whitehead, Mike
> Cas "Madden Sebastian'; ‘Thomas. Lovesey GRO
Rawson Hugh (Mr HJ); Buck Rosemary (Ms RC)
>
> Subject: Horizon Working Group
>
> Mr Sweetman
> Mr Baker
> Mr Deegan
> Mr Hodgson
> Mr Madden
>
> Please find attached below a copy of the note of the Working Gro
up meeting
> of 8 November which has been approved by Mr Johnson. If you hav
e any
> comments or amendments on this note, please let me know.
>
> Mary Spoor
> Postal Services Directorate
>
Pa
>
>
>
Pa
>
> << File: ATT00239.ATT >>
Page 1
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x400.txt
Many thanks for e-mailing the Minutes of our meeting held on 8th N
ovember.
I would confirm that the
Dorothy Lovett
=m Original Message---~-
> From: Spoor Mary (CGBPS) [SMTP GRO
> Sent: 05 December 2000 17:00
> Tos Allen Jennifer; Baker Colin; Deegan Terry; Denton Diana; H
arris
> Tony; Hodgson Derek; Johnson, MPST; Kearns Tony; Lovett Dorothy;
Miller
> David; Payton Matthew; Sweetman Stuart; Whitehead...Mike...
"Madden Sebastian'; 'Thomas.Lovesey:
> Rawson Hugh (Mr HJ); Buck Rosemary (Ms RC)
> Subject: Horizon Working Group
>
>
>
>
> Mr Sweetman
> Mr Baker
> Mr Deegan
> Mr Hodgson
> Mr Madden
>
> Please find attached below a copy of the note of the Working Gro
up meeting
> of 8 November which has been approved by Mr Johnson. If you hav
e any
> comments or amendments on this note, please let me know.
>
> Mary Spoor
> Postal Services Directorate
>
> Tel: er "ADOD I
> Fax: & GRO
>
>
>
>
> << File: ATT0O1162.ATT >>
Page 1
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Sp ~r Mary (CGBPS)
= = = — = = =
From: Spoor Mary (CGBPS)
Sent: 05 December 2000 17:00
To: Allen Jennifer; Baker Colin; Deegan Terry; Denton Diana; Harris Tony; Hodgson Derek;
Johnson, MPST; Kearns Tony; Lovett Dorothy; Miller David; Payton Matthew; Sweetman
Stuart; Whitehead, Mike .
Ce: ‘Madden Sebastian’; ‘Thomas. Lovesey’,
HJ); Buck Rosemary (Ms RC)
Subject: Horizon Working Group
Mr Sweetman
Mr Baker
Mr Deegan
Mr Hodgson
Mr Madden
Please find attached below a copy of the note of the Working Group meeting of 8 November which has been approved
by Mr Johnson. If you have any comments or amendments on this note, please let me know.
Mary Spoor
Postal Services Directorate
Tel: I
12thmestingnote. doc
HWG/12/1
NOTE OF THE TWELFTH MEETING OF THE HORIZON WORKING
GROUP HELD ON WEDNESDAY 8 NOVEMBER AT 15.00 AT THE DTI
CONFERENCE CENTRE, 1, VICTORIA STREET, LONDON
Those present:
oT
Alan Johnson MP Minster for Competitiveness
Simon Lancaster PS/Mr Johnson
David Sibbick Postal Services Directorate
Mike Whitehead Postal Services Directorate
Mary Spoor Postal Services Directorate
Cabinet Office
‘Andrew Pinder e-Envoy
Bob Evans Office of the e-Envoy
Sebastian Madden Office of the e-Envoy
Chris Parker Office of the e-Envoy
Barbara Rose Modernising Public Services Group
Post Office
Stuart Sweetman Group Managing Director Customer and Banking Services
Dave Miller Managing Director Post Office Networks
Dave Waltho Government Gateway Director
Catherine McCrohan Head Government GP
cwu
Derek Hodgson General Secretary
Tony Kearns Assistant Secretary
Matthew Payton Research Assistant
cMA
Terry Deegan General Secretary
Tony Harris Assistant National Secretary
NESP
Colin Baker General Secretary
John Peberdy Chairman Negotiating Committee
Chairman’s Introduction
Mr Johnson welcomed Andrew Pinder, the acting e-Envoy and his team and
Dave Waltho who would be making the presentation on Government GP on
behalf of the Post Office. Owing to illness, Mr McCartney was unable to
attend the meeting.
Post Office presentation on Government GP
Dave Waltho spoke to a series of slides.
PIU report recommendations 17,18 and 19 for Government General
Practitioner and Internet and Local Access Points at post offices were being
developed together as Government GP. The concept of the GP scheme was
to build on the network's traditional role as a centre for advice on government
business; it was envisaged that post offices would act as one stop shops for
around 80% of queries and as first stop shops for the remaining 20%. The
work undertaken would include dispensing basic information and advice and
effecting official transactions. The scheme would provide customers with the
convenience of a one stop shop and a number of channels by which to
transact business, such as information kiosks and web phones. Indications
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were encouraging for the project's success, the Post Office possessed
numerous assets namely a trusted brand, solid customer base including
SMEs, national infrastructure, integrated channels and the depth and breadth
of the Post Office offer.
Government GP was something of a misnomer in that the 1,000 potential
clients covered a wide range of functions from the voluntary sector and
European organisations.
A pilot trial was planned using about 250 outlets and, although a final decision
had not been taken on location, the choice of area had been narrowed to
Leicestershire, Avon, Norfolk and South Lancashire. The pilot would test
viability, consumer demand, value for money and future operation and
implementation. As a general approach, the pilot would be customer
focussed and would expand gradually on a learn and build basis, initially the
assistance available would be centred on the needs of selected consumer
groups e.g. young families and on selected social areas.
To date, good progress had been made. The project team was set up and a
private sector partner selected, although no contract had been signed yet. A
number of stakeholder meetings had been held and benchmarking and
baseline tools were in development.
Risks of a general nature had been identified, namely project complexity, the
timescales involved and the capacity and capability of the Post Office to effect
delivery. Proactivity and a co-ordinated Government approach were also
factors. Recent developments had also raised risks associated with
procurement and ownership.
On procurement, there was the potential requirement for the roll out to be
subject to competitive tender. However, there were a number of ways of
dealing with this issue which were currently under examination.
On ownership, the Post Office saw a gap in the Government stance. The
project needed a Champion at Ministerial level who would be pivotal in
providing leadership and co-ordinating the various Government Departments.
In conclusion there were a number of steps the Post Office envisaged would
take forward the plan, namely drafting a letter of intent, appointing a
Government Champion, the Post Office to engage with its private sector
partner, stakeholder consultations to be continued and the pilot project to
begin as soon as possible after April 2001.
Discussion
Mr Johnson said that the matter of identifying a Government Champion to
take forward the important work of the Government GP was an important one.
He had not yet had an opportunity to discuss with Mr McCartney how this
should be taken forward. Andrew Pinder said that he would seek Mr
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McCartney's view. Mr Johnson assured the meeting that this matter would be
resolved once Mr McCartney’s views were known.
ACTION: DTI
On procurement, Mr Johnson said that as distribution of financial support
through DfEE could have presented issues of open tendering for the pilot
project, responsibility for distribution of the ring-fenced money had been
passed to DTI. The Post Office business plan had been approved by
Ministers and the matter of a letter of comfort was being examined. Andrew
Pinder said that on procurement, the Cabinet Office had some expertise in IT
projects which may be relevant in the case of Government GP and which it
would be happy to share with DTI.
In response to Tony Kearns’ request for more detail on the proposal, Dave
Waltho said that the fine detail would follow Ministers’ final decision.
However, it was possible to say that the Post Office had engaged in
discussion with a number of potential stakeholders from the voluntary and
public sectors and had received a positive response. Some of the
organisations contacted were Age Concern, NACAB, the NHS and DSS. The
Citizens Advice Bureaux organisation had offered to work with the Post Office
on training of advisers and talks with the NHS indicated the possibility of
arranging access at post offices to the Health Service website as well as their
acting as leaflet distribution points.
In reply to Mr Johnson concerning remuneration for Subpostmasters, Dave
Waltho said that this was a complex matter which would be subject to
negotiation between the Post Office and the Federation. The aim was to
agree an arrangement which provided incentives; a possible area for
exploration was inclusion of the use of National Vocational Qualifications as
one base on which to build a pay package.
Mr Baker expressed concern about progress in PIU report implementation.
The future of the network rested on setting up universal banking services at
post offices and the Government GP, success in these two core schemes was
vital. Government GP was particularly important in that there were no outside
influences in going forward, the initiative lay entirely with Government and the
Post Office. However, the presentation had highlighted a number of pitfalls
which had not yet been addressed. Network confidence was already fragile,
risks and difficulties as outlined in the Post Office presentation did not augur
well for the future. Mr Hodgson said that there appeared to be a danger of
missed target dates for the Government GP pilot trial which would impact on
the programme and funding as well as affect the morale within the network.
Mr Johnson said that on the publication of the PIU report, all the stakeholders
were aware that implementation of the 24 recommendations would not be
easy. It was not possible to ignore procurement and competition rules and
these were being actively addressed. By exposing the issues and potential
difficulties now, the Government was taking an honest approach so that all the
partners could work together on solutions and so avoid setbacks later.
Andrew Pinder said that it was essential to remember that the full support of
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Ministers lay behind implementation and that Cabinet Office was committed to
assisting the Post Office in this project. Large contracts by their very nature
invariably presented a number of difficulties but that these could be managed
to a successful conclusion.
Cabinet Office information papers
Mr Johnson thanked the Cabinet Office for the five information papers.
Horizon roll out update
Dave Miller said that currently there were 14,044 post offices equipped with
the Horizon system and the installation programme was running about one
and a half weeks ahead of schedule. Work would continue until early
December and would be substantially completed by mid-March. There were
however about 400 offices which would remain without computer equipment
beyond March as these constituted the difficult cases where offices lacked
ISDN lines or electricity or required substantial building work. The programme
was scheduled for final completion by June 2001 by which time every outlet in
the network would be equipped with the Horizon system.
The Horizon system was now equipped with software which made the system
smartcard enabled. This was available in all the post offices currently
equipped with Horizon and would be available to those outlets still to be
integrated.
PIU implementation update
Mr Johnson said that the round of visits to senior management of the
individual High Street Banks was nearly complete and to date, discussion with
them about the Post Office business case had been encouraging. He
reminded the meeting that the Johnson and Johnson letter of July had
requested the banks’ commitment to either development of a PAT 14 account
or to join in support of a Universal Bank. Through the Summer, the approach
had developed to the extent that the business case called for PAT 14
accounts to be accessed at post offices and for support for a Clear account
which was a stripped down version of an account, without ATM access.
Support for Universal Banking would enable the banks to meet all the
obligations required by Government to effect greater financial inclusion. It
would also benefit the post offices which would gain footfall. Currently the
banks were further considering the Post Office business plan with a view to
taking a decision by the end of November. It was envisaged that a
Memorandum of Understanding would be available for signing early in
December.
David Sibbick said that although the talks with the banks had been
encouraging, it was necessary for senior management to seek clearance from
the banks’ Boards of Directors. The banks were fully aware that the move to
delivery of benefits and pensions by ACT from 2003 would impact on them
and that takeup of PAT 14 accounts would be considerable. The ability to
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access PAT 14 accounts at post office counters was an attractive option to
relieve pressure in bank branches.
Any other business
Mr Johnson said that David Sibbick was retiring from the Civil Service at the
end of the month and that the meeting marked his final attendance at the
Working Group. He was confident that members would join him in wishing Mr
Sibbick a long and happy retirement.
Date of the next meeting
Wednesday 13 December at 11.30.
CGBPS1A
30 November 2000
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Ss Mary (CGBPS) 7
From: Johnson MPST
Sent: 04 December 2000 10:26
To: Spoor Mary (CGBPS)
Subject: RE: Note of the Horizon Working Group meeting
Mary
The note is fine - many thanks.
Simon
--—Original Message-—-
From: Spoor Mary (CGBPS)
Sent: 01 December 2000 12:55
To: Johnson MPST
Subject: _Note of the Horizon Working Group meeting
Simon
Please find attached a draft note of the meeting which took place on 8 November. I should be pleased to
distribute if the Minister is content with the text.
Cabinet Office have had sight of the draft note and their minor amendments are included.
Mary Spoor
Postal Services
<< File: 12thmeetingnote.doc >>
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{ I yeMary (CGBPS)
= -
From: Spoor Mary (CGBPS)
Sent: 01 December 2000 12:55
To: Johnson MPST
Subject: Note of the Horizon Working Group meeting
Simon
Please find attached a draft note of the meeting which took place on 8 November. I should be pleased to distribute if
the Minister is content with the text.
Cabinet Office have had sight of the draft note and their minor amendments are included,
Mary Spoor
Postal Services
‘al
‘2thmeetingnote.doc
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HWG/12/1
NOTE OF THE TWELFTH MEETING OF THE HORIZON WORKING
GROUP HELD ON WEDNESDAY 8 NOVEMBER AT 15.00 AT THE DTI
CONFERENCE CENTRE, 1, VICTORIA STREET, LONDON
Those present:
pT
Alan Johnson MP Minster for Competitiveness
Simon Lancaster PS/Mr Johnson
David Sibbick Postal Services Directorate
Mike Whitehead Postal Services Directorate
Mary Spoor Postal Services Directorate
Cabinet Office
Andrew Pinder e-Envoy
Bob Evans Office of the e-Envoy
Sebastian Madden Office of the e-Envoy
Chris Parker Office of the e-Envoy
Barbara Rose Modernising Public Services Group
Post Office
Stuart Sweetman Group Managing Director Customer and Banking Services
Dave Miller Managing Director Post Office Networks
Dave Waltho Government Gateway Director
Catherine McCrohan Head Government GP
cwu
Derek Hodgson General Secretary
Tony Kearns Assistant Secretary
Matthew Payton Research Assistant
CMA
Terry Deegan General Secretary
Tony Harris Assistant National Secretary
NESP
Colin Baker General Secretary
John Peberdy Chairman Negotiating Committee
Chairman’s Introduction
Mr Johnson welcomed Andrew Pinder, the acting e-Envoy and his team and
Dave Waltho who would be making the presentation on Government GP on
behalf of the Post Office. Owing to illness, Mr McCartney was unable to
attend the meeting.
Post Office presentation on Government GP
Dave Waltho spoke to a series of slides.
PIU report recommendations 17,18 and 19 for Government General
Practitioner and Internet and Local Access Points at post offices were being
developed together as Government GP. The concept of the GP scheme was
to build on the network’s traditional role as a centre for advice on government
business; it was envisaged that post offices would act as one stop shops for
around 80% of queries and as first stop shops for the remaining 20%. The
work undertaken would include dispensing basic information and advice and
effecting official transactions. The scheme would provide customers with the
convenience of a one stop shop and a number of channels by which to
transact business, such as information kiosks and web phones. Indications
were encouraging for the project's success, the Post Office possessed
numerous assets namely a trusted brand, solid customer base including
SMEs, national infrastructure, integrated channels and the depth and breadth
of the Post Office offer.
Government GP was something of a misnomer in that the 1,000 potential
clients covered a wide range of functions from the voluntary sector and
European organisations.
A pilot trial was planned using about 250 outlets and, although a final decision
had not been taken on location, the choice of area had been narrowed to
Leicestershire, Avon, Norfolk and South Lancashire. The pilot would test
viability, consumer demand, value for money and future operation and
implementation. As a general approach, the pilot would be customer
focussed and would expand gradually on a learn and build basis, initially the
assistance available would be centred on the needs of selected consumer
groups e.g. young families and on selected social areas.
To date, good progress had been made. The project team was set up and a
private sector partner selected, although no contract had been signed yet. A
number of stakeholder meetings had been held and benchmarking and
baseline tools were in development.
Risks of a general nature had been identified, namely project complexity, the
timescales involved and the capacity and capability of the Post Office to effect
delivery. Proactivity and a co-ordinated Government approach were also
factors. Recent developments had also raised risks associated with
procurement and ownership.
On procurement, there was the potential requirement for the roll out to be
subject to competitive tender. However, there were a number of ways of
dealing with this issue which were currently under examination.
On ownership, the Post Office saw a gap in the Government stance. The
project needed a Champion at Ministerial level who would be pivotal in
providing leadership and co-ordinating the various Government Departments.
In conclusion there were a number of steps the Post Office envisaged would
take forward the plan, namely drafting a letter of intent, appointing a
Government Champion, the Post Office to engage with its private sector
partner, stakeholder consultations to be continued and the pilot project to
begin as soon as possible after April 2001.
Discussion
Mr Johnson said that the matter of identifying a Government Champion to
take forward the important work of the Government GP was an important one.
He had not yet had an opportunity to discuss with Mr McCartney how this
should be taken forward. Andrew Pinder said that he would seek Mr
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McCartney's view. Mr Johnson assured the meeting that this matter would be
resolved once Mr McCartney's views were known.
ACTION: DTI
On procurement, Mr Johnson said that as distribution of financial support
through DfEE could have presented issues of open tendering for the pilot
project, responsibility for distribution of the ring-fenced money had been
passed to DTI. The Post Office business plan had been approved by
Ministers and the matter of a letter of comfort was being examined. Andrew
Pinder said that on procurement, the Cabinet Office had some expertise in IT
projects which may be relevant in the case of Government GP and which it
would be happy to share with DTI.
In response to Tony Kearns’ request for more detail on the proposal, Dave
Waltho said that the fine detail would follow Ministers’ final decision.
However, it was possible to say that the Post Office had engaged in
discussion with a number of potential stakeholders from the voluntary and
public sectors and had received a positive response. Some of the
organisations contacted were Age Concern, NACAB, the NHS and DSS. The
Citizens Advice Bureaux organisation had offered to work with the Post Office
on training of advisers and talks with the NHS indicated the possibility of
arranging access at post offices to the Health Service website as well as their
acting as leaflet distribution points.
In reply to Mr Johnson concerning remuneration for Subpostmasters, Dave
Waltho said that this was a complex matter which would be subject to
negotiation between the Post Office and the Federation. The aim was to
agree an arrangement which provided incentives; a possible area for
exploration was inclusion of the use of National Vocational Qualifications as
one base on which to build a pay package.
Mr Baker expressed concern about progress in PIU report implementation.
The future of the network rested on setting up universal banking services at
post offices and the Government GP, success in these two core schemes was
vital. Government GP was particularly important in that there were no outside
influences in going forward, the initiative lay entirely with Government and the
Post Office. However, the presentation had highlighted a number of pitfalls
which had not yet been addressed. Network confidence was already fragile,
risks and difficulties as outlined in the Post Office presentation did not augur
well for the future. Mr Hodgson said that there appeared to be a danger of
missed target dates for the Government GP pilot trial which would impact on
the programme and funding as well as affect the morale within the network.
Mr Johnson said that on the publication of the PIU report, all the stakeholders
were aware that implementation of the 24 recommendations would not be
easy. It was not possible to ignore procurement and competition rules and
these were being actively addressed. By exposing the issues and potential
difficulties now, the Government was taking an honest approach so that all the
partners could work together on solutions and so avoid setbacks later.
Andrew Pinder said that it was essential to remember that the full support of
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Ministers lay behind implementation and that Cabinet Office was committed to
assisting the Post Office in this project. Large contracts by their very nature
invariably presented a number of difficulties but that these could be managed
to a successful conclusion.
Cabinet Office information papers
Mr Johnson thanked the Cabinet Office for the five information papers.
Horizon roll out update
Dave Miller said that currently there were 14,044 post offices equipped with
the Horizon system and the installation programme was running about one
and a half weeks ahead of schedule. Work would continue until early
December and would be substantially completed by mid-March. There were
however about 400 offices which would remain without computer equipment
beyond March as these constituted the difficult cases where offices lacked
ISDN lines or electricity or required substantial building work. The programme
was scheduled for final completion by June 2001 by which time every outlet in
the network would be equipped with the Horizon system.
The Horizon system was now equipped with software which made the system
smartcard enabled. This was available in all the post offices currently
equipped with Horizon and would be available to those outlets still to be
integrated.
PIU implementation update
Mr Johnson said that the round of visits to senior management of the
individual High Street Banks was nearly complete and to date, discussion with
them about the Post Office business case had been encouraging. He
reminded the meeting that the Johnson and Johnson letter of July had
requested the banks’ commitment to either development of a PAT 14 account
or to join in support of a Universal Bank. Through the Summer, the approach
had developed to the extent that the business case called for PAT 14
accounts to be accessed at post offices and for support for a Clear account
which was a stripped down version of an account, without ATM access.
Support for Universal Banking would enable the banks to meet all the
obligations required by Government to effect greater financial inclusion. It
would also benefit the post offices which would gain footfall. Currently the
banks were further considering the Post Office business plan with a view to
taking a decision by the end of November. It was envisaged that a
Memorandum of Understanding would be available for signing early in
December.
David Sibbick said that although the talks with the banks had been
encouraging, it was necessary for senior management to seek clearance from
the banks’ Boards of Directors. The banks were fully aware that the move to
delivery of benefits and pensions by ACT from 2003 would impact on them
and that takeup of PAT 14 accounts would be considerable. The ability to
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access PAT 14 accounts at post office counters was an attractive option to
relieve pressure in bank branches.
Any other business
Mr Johnson said that David Sibbick was retiring from the Civil Service at the
end of the month and that the meeting marked his final attendance at the
Working Group. He was confident that members would join him in wishing Mr
Sibbick a long and happy retirement.
Date of the next meeting
Wednesday 13 December at 11.30.
CGBPS1A
30 November 2000