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Rt Hon Lan McCartney MP
Minister of State
Department of”
‘Trade and Industry
1 Victoria Street
Colin Baker Esq Loadon
Generai Secretary SWiK CET
National Federation of Subpostmasters
Evelyn House
Windlesham Gardens
Shoreham by Sea
West Sussex BN43 5AZ
‘} June 1999
Dear Mr Baker
HORIZON WORKING GROUP
You will know that following the recent agreement in principle with ICL on completing project
Horizon in a restructured and simplified form, the Secretary of State asked me to set up a small
working group of key players to help ensure that the project is now taken forward in a positive and I
decisive way to a successful conclusion,
Thave decided to invite four organisations to be full members of the Horizon Working Group,
namely the Post Office, the Communication Workers Union, the Communication Managers
Association and the National Federation of Subpostmasters. Clearly we shall need a dialogue with
other organisations including ICL, the Department of Health and Social Security, the Benefits
Agency and the Treasury, but I have not thought it appropriate to include these as full members. I
understand that David Sibbick, who will act as Secretary to the Group, has already advised you
that { propose to hold an initial meeting here at 10.30 tomorrow morning (8 June). It would be
helpfut if you could confirm attendance to my Assistant Private Secretary, Geoff Moore on,
I see the work of the Group as falling into three main areas. First, there are the negotiations
between POCL and ICL, and between POCL and BA, that need to take place over the next few
weeks to put in place the detailed contractual arrangements that will give effect to the outline
agreement reached on 24 May. I see a role for the Working Group in carefully monitoring these
negotiations and in addressing and helping to resolve any sticking points that may be encountered.
The second area covers the reinaining development phases of Horizon, including large scale live
trials, system acceptance, and roll-out of the system smoothly and in a timely fashion to alt offices
within the network followed by the migration from paper-based methods of benefit payment to
ACT-based payments accessible at post offices. 1 believe that the Working Group could provide a
valuable forum for bringing pressure to bear where needed and for seeking solutions to any
problems that may arise.
asorravmvenoeccuenwncaremancnencaoince OCS “
Pena ar ot ade
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The third area concerns the commercial exploitation of the very considerable potential which the
Horizon platform will offer once in place. The combined experience of the Working Group should
prove a valuable source of ideas and contacts for business opportunities and future revenue
streams.
T set out below suggested terms of reference for the Working Group intended to reflect these ideas
Thope that at our meeting on Tuesday morning we will be able to agree terms of reference on these
lines, as well as an outline work programme and schedule of future meetings.
After the prolonged delays and uncertainties surrounding the future of project Horizon it is vitally
important that the project is now taken forward with a high level of commitment to its success
from all the parties concerned, J hope that my Working Group will be able to contribute positively
to this and I look forward to working with you.
Youssincerely
Yan McCartney
(Approved by the Minister and
signed in his absence)
ruscreionmorcocueTMoMenannenccotsce §=OTL
Depurtrrent of Trado and Indusiey
cy
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PROPOSED TERMS OF REFERENCE
In relation to carrying forward the work on the POCLicI, Horizon project:
* to oversee the negotiations between POCL and ICL whi
ich will develop the letter of agreement
signed between the parties on 24 May into a Codified Agreement governing the contractual
relationship under which the project will be taken forward, together with the Consequential
arrangements between POCL and the Benefits Agency; and to facilitate solutions to any
problems which may arise:
to oversee, to contribute actively to, and to facilitate solutions where problems arise, the
completion of the development phases of the Horizon Project, and in particular the smooth and
timely roll-out of the system to all offices within the Post office network, and the Subsequent
satisfactory migration of benefit payments fro; the present Paper-based methods to more
modern, ACT-based, methods of I maymer{soccena through Post offices; and
DATELIPIMEETO!.O6e had
Depectnene of Tate and industry