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DEPARTMENT OF BOCIAL gp,
; CURPry
Richmond House, 79 Whiteball, London.
4
Telephone! "GRO BWA ang
From the Pordigmentory Under Seoretary of State fag Soiat 9,
ee
cWrity
ICY
RESTRICTED - COMMERCIAL & PO!
‘The Rt Hon Alistair Darling MP w [ ;
Chief Secretary f
HM Treasury 1
Parliament Stree!
London Wi September 1997
SWIP 3AG
Dew Thee
YMENT:
AUTOMATION OF POST OFFICES AND BENEFIT PAYMENTS
‘Thank you for your letter of 29 August concerning the above project,
ink YOu
PA Consulting, who are undertaking the review of the project re Committed to oliveri
their review document on 19 September. I am oesend the other available to your officiats
quickly, but it will obviously take a little time torus ‘ Parties directly Concerned
to form a view of the implications of the report and the appropriate action,
{can confirm that in the meantime we are undertaking appropriate contin,
as you recognise to be necessary. giving the highest priority to maki
automation project.
GENCY Work while,
MG 8 Success of the
However, I would not want you te harbour any hopes that the project can be brought bac!
on track ‘uly understand that the emerging view of the Consultants undertaking na
review is that the completion of rollout is likely to be at least 18 Months beyond the
original contractual date; this is at least an additional six months slippage beyond that
reflected in the figures attached to my letter of 12 August: and this assumes the
achievability and success of substantial organisational and contractual changes which the
Consultants are likely to propose. Further, I understand that the consultants’ initial view ig
that the original business cases of all three parties are highly vulnerable to Slippage,
jin prospects for the timing and financing of this automation pro;
implcences tor the review of the Post Office which I understand is
underway shortly. I would aiso be concerned if such a review, looking
fundamental change, focused solely on the efficiency of the Post Office without taking the
‘opportunity of looking at the efficiency overall of those areas of Government business in
which the Post Office is involved - and DSS is the source of about a third of POCL’s
revenue - and at how any wider social obligations are to be discharged, More parochially,
J understand that the terms of our contractual relationship with POCL are not sufficiently
robust to be carried through in any transition to 2 more commercial environment,
a
Recycles Paper
ject clearly have
expected to get
at the options for
a)
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8
i helpful if
in these circumstances, 1 suagest thet would be REIN IF mY department wore to
participate in the forthcoming review.
fetter to TONY Blair, Jo
hn Prescott,
. Vase
As before, { am copying this : tt -
Blunkett and Mo Mowlem.
“JOHN DENHAM
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