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HWG/10/1
NOTE OF THE TENTH MEETING OF THE HORIZON WORKING GROUP
HELD ON TUESDAY 22 AUGUST 2000 AT DTI, 1 VICTORIA STREET,
LONDON
Those present:
Alan Johnson MP Minister for Competitiveness
Simon Lancaster PS/Mr Johnson
Mike Whitehead Postal Services Directorate
Mary Spoor Postal Services Directorate
Post Office
Stuart Sweetman Group Managing Director, Customer and Banking Services
‘Sue Huggins
National Federation of Subpostmasters
Colin Baker General Secretary
John Peberdy Chairman of Negotiating Committee
Communication Managers’ Association
Terry Deegan General Secretary
Communication Workers’ Union
Tony Kearns Assistant Secretary
Update on Horizon installation
Mr Sweetman reported that 60% of the network comprising nearly 11,000
post offices had been successfully converted to Horizon, and the programme
was maintaining an installation rate in excess of 300 offices per week. 96%
of the network was prepared for conversion. By mid October, the first phase
of installation would be complete and the second phase, due to complete in
February 2001, would comprise the conversion of 4,000 outlets. At the end of
March/ beginning of April 2001, 300 offices requiring mobile kit would undergo
conversion and a further 500 would require linkage to satellite
communication. On software, the first upgrade was scheduled for
September. The upgrade would introduce new functionality such as smart
card reading and stock control.
There had been some difficulties with the training schedule, but Post Office
pressure on ICL to rectify matters had resulted in improvement. The situation
would continue to be monitored closely. In general the feedback on the
training programme and functioning of the Horizon equipment had been
encouraging.
Following discussion, an accommodation had been reached with the NFSP
about the installation programme during December.
The selection process for the banking functionality continued. It was a two-
fold process comprising purchase of the banking engine and of the software
which linked the post office counters to the banks.
Implementation of the PIU Report
Mr Johnson’s proposal was agreed to include an item to update on PIU report
implementation at subsequent meetings of the Working Group.
Mr Johnson said that a number of interdepartmental steering groups had
been set up to monitor progress on implementation of the report's 24
recommendations. Good progress had been made during the last few weeks
and the Government looked forward to examining a number of business
cases at the beginning of September.
a) The Universal Bank
It had been made clear to the banking industry in the joint Ministerial letter
(Johnson and Johnson) of 18 July that the Universal Bank was the
Government's preferred option to meet the H M Treasury financial exclusion
remit on the banks to provide a basic account by October 2000. These basic
accounts were required, without penalty, to provide deposit, withdrawal and
direct debit facilities and carry no risk of unauthorised overdraft. Although the
response of the British Banking Association to the Johnson and Johnson
letter had been disappointing, the Government was committed to pursuing the
Universal Bank proposal and the Secretary of State was scheduled to meet
CEOs of the major High Street banks on 12 September in order to discuss
the business plan.
In response to Mr Baker, Mr Johnson confirmed that there would be no
restrictions on Universal Bank customers. The Bank would obviously appeal
primarily to the unbanked, but people not currently in receipt of benefits at the
post office counter would also be eligible.
In response to Mr Deegan, Mr Johnson said that it should be clearly
understood that the Universal Bank was not a competitor to the commercial
banks.
Mr Peberdy expressed concern about the fallback position in case the
Universal Bank proposal failed. Mr Johnson reiterated the Government's firm
commitment to the Universal Bank. If and when necessary contingency plans
would be brought forward, but at present there was good reason to be
optimistic about the proposal.
b) GGP/ILAP
Following presentation of the business case next month, pilot projects were
planned for 2001.
Mr Baker asked about progress on the possibility of basing at post offices a
national register of lost property. Mr Sweetman said that this was one of a
very long list of excellent suggestions to be pursued. However, he pointed
out that successful development of these proposals was dependent on
innovative policies of Government Departments and Agencies to outsource
many of their bureaucratic functions and on the Post Office to present itself as
a serious and attractive organisation to fulfil those functions. The Post Office
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image of a traditional organisation was well established and it could be
difficult to change the view of prospective customers. Taking opportunities to
promote Horizon and implementation of the PIU report recommendations was
key to changing that image.
It was agreed that the Post Office would prepare a prioritised list of possible
Government-based revenue earning proposals for presentation to Mr
McCartney at the next meeting of the Working Group.
ACTION: Post Office
Mr Peberdy pointed out that although many local authorities appeared to be
promoting initiatives to assist post offices there was no obvious central co-
ordination. Mr Whitehead agreed to pursue this point with DETR.
ACTION: DTI
c) Modernisation of the post office network
Funding of £270 million over three years had been set aside to address the
problems of the rural and urban networks. Further funding was expected,
based on an agreed business case.
Mr Baker said that planned funding for the rural network did not come into
play until 2003 but this would contribute nothing to alleviation of current
difficulties. Mr Johnson said that the Post Office had an obligation on
preventable closures and this policy was being actively pursued, bringing
forward funding was being examined, however.
In conclusion, Mr Johnson reminded the meeting that the PIU
recommendations were not an exhaustive list. It would also be necessary for
the Post Office and other interested parties to pursue initiatives. Members of
the Working Group were invited to put forward any proposals, at any time.
Any other business
None.
Date of the next meeting
18 September 2000.
CGBPS1A
23 August 2000