POL00028639 - Note of telephone call between David Sibbick, DTI, and Paul Rich, POCL, re Horizon, 18 March 1998

Evidence on official site

POL00028639

POL00028639
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From: Beer, Christine
To: Corrigan, Kevin; Gardner, Nevhis; Richardson, Samantha; Watts, Erika; cook, colin; leeson,
vanessa
Ce: Sweetman, Stuart
Subject: Note from Paul Rich
Date: Wednesday, March 18, 1998 6:11PM

Please see attached note from Paul Rich
<<File Attachment: RICH47.DOC>>

Page 1

To

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IN STRICTEST CONFIDENCE

Stuart Sweetman
Venessa Leeson
Dave Miller
Mena Rego

Sam Richardson
Colin Cook
Kevin Corrigan

From Paul Rich 18 March 1998

FILE NOTE: TELECOM WITH DAVID SIBBICK OF DTI
RE HORIZON 17/3/98

This records the key points of a confidential conversation with David Sibbick
on Horizon.

1

3a

3b

Rich47

David thanked POCL for all the input to the joint Ministerial
submission being prepared this week.

He explained two separate agendas were clearly emerging (a) what
shall we do if Horizon failed (the reasonable line)? or (b) we have made
up our minds to withdraw from Horizon at the earliest opportunity -
now, or at the very latest at the end of the contract (the DSS line).

Adopting 2(a) leads to an approach based on a contingent set of
scenarios - and so leads to a “don’t sour the ICL relationship
unnecessarily” approach.

Adopting 2(b) leads to “let’s put ICL into an impossible situation”
approach, manifested in programme/legal difficulties.

DTI had not yet completed their input to the joint official’s paper to
Ministers. They are working up:

(a) what were the impacts of POCL losing Horizon, but by and large
keeping BA business (eg incremental automation, stable network) and
(b) what were the network consequences of POCL losing large and
sudden chunks of revenue through, eg Horizon failing and BA losing
faith.

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IN STRICTEST CONFIDENCE
6 The paper would be completed in readiness for another HMT -led
meeting on Friday 20 March.
_—_—_——_——.

7 The proposed “technical assessment” of the programme would be
chaired by Adrian Montague (PFI Taskforce in HMT), with a couple of
committee members, including Alec Wylie* drawing in experts as they
saw fit (inc PA?).

8 This may mean Ministers may not meet to decide for another 1/2
months.

9 Hamish Sandison* of Bird and Bird has been called in by HMT, and
had been asked to draft a holding letter to ICL without losing rights on
ICL breach.

10 DTI would keep in close touch with POCL as the issue progresses; they _

asked that ICL were not advised yet.

Paul Rich

*letter sent to Hamish Sandison
*meeting to be arranged with Alec Wylie and Paul Rich

Rich47