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Options for the
Scheme
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« PO met MPs (James Arbuthnot, Oliver Letwin, Mike Wood,
Andrew Brigden) and JFSA (Alan Bates)
¢ Their demand — agree to mediate all cases where Second Sight
recommend mediation
¢ Their threat — succumb to pressure and speak to the media
* Our response — will think about it
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Challenges: Part I
¢ Breaches of confidentiality and media threats
¢ Non-participation of POL’s main interlocutor (JFSA)
* Second Sight Reports — quality and default recommendation
(mediate in almost all cases)
¢ Expectations gap — total claims in excess of £65m
¢ Appropriateness of mediation — cause of loss plain and/or criminal
case _
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Challenges: Part Il
¢ POL culpability assumed and embedded in public narrative
* Changing target — Horizon integrity established, new fronts
opened
* Challenge to business model — SPM contract in particular
* Political prize sought is likely large scale scandal
* How to contain damage from spreading across Network
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Moving forward: Options
¢ Time for a stocktake?
Open minded approach to options — nothing off the table
Full range considered on a graduated basis
Imperative to accept that there are no good outcomes
Question is nature, duration and cost of pain only
The Spectrum
Option A: Rollover and Mediate all
oe
Option B: Negotiate a
Mediation hybrid model,
with the exception of
criminal cases
Option C: Business as usual
TEE
Going Against MP's demand
Option E: £5,000
Option D: Bring the scheme
‘in house’
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Rollover
¢ All elements of current scheme
¢« WG apparatus and process maintained
* POL pre-agrees to mediate all cases, including criminal cases
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Negotiated process
* Accept Rollover but negotiate caveats to limit risk/cost
¢ Seek to exclude criminal cases from mediation and/or
* Seek to introduce possibility of discussion (as opposed to formal
mediation) in some or all cases
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Business as usual
* Scheme continues unchanged — including all meetings, processes
and apparatus
¢« POL approach and positions on cases maintained, mediations
scheduled
¢ ToRs adhered to per Board direction (Summer 2014)
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Scheme ‘In House’
¢ Announce Scheme will be brought in house
« Final investigation complete (22/12) and mediate as desired
« Defend against any resulting litigation as BAU
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* Offer all Scheme Applicants a payment (£ quantum 7?)
* One time only in return for relinquishing of all/any claim against
POL
* Defend any litigation from those that refuse as BAU
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Impact & Risk Matrix
High level Risk / Impact Matrix Snapshot by Scenario High level Impact and Risk over time Matrix by Scenario
E
£:
8B
D
.
Cc B '
Risk
Impact & Risk
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Recommend
* Carry on as we are:
We expected this — its happening
Not pleasant but manageable
If we concede it will never end — we are beyond faults with Horizon
Concession puts the whole business at risk
We have the other SPMRs/staff and customers to consider
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Handling - Assume BAU
« Meet Oliver Letwin to explain our position — next week
¢ Write and confirm we will not change our position — next week
* ? Do we send an interim response to JA? — end this week
¢ Letter written with a view to publication
¢ Robust ‘have considered but not prepared to change’
* Copy letter to those MPs present and JFSA
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Handling
¢ Chair
« Explain POL’s decision
* Note: Chair not likely to respond to media but will not defend POL
* If pressed, would be more anti than pro PO
¢ Working Group
* Continue as usual
* If JFSA leave we:
* Issue statement of disappointment but carry on investigating
* Consider the implications for the Scheme and will respond when we
have carefully considered our position
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¢ Update at official level — this week
* CEO update Minister 27 November
« Key messages:
« Will support minister if raised politically
Acted in good faith at all times
No problem with Horizon
Cannot respond to threats
« Never enough, threatens our business model
Can handle the media fallout
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Media prep
¢ Short statement:
Disappointed some have decided to speak publicly
We will not comment /provide running commentary
We set up scheme in good faith — working as anticipated
Must be allowed to run its course
No fault with Horizon
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What we can expect
¢ More Fol
« PQs
Debates
Leaks
Unsubstantiated allegations
Continued media speculation
Poss legal challenge — individual/group/JR
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BUT — WE CAN MANAGE THIS
¢ Not front page news
« Not a story with longevity
We have acted in good faith
More good news than bad news stories about PO
No fault with Horizon
No unsafe conviction
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LONGER TERM
* Refreshing JR advice in light of:
* where we are now
* where we might be if MPs/JFSA go public — eg:
« JFSA leave the Working group
« Applicants withdraw en mass
« Legal challenges (individuals attempt to sue rather that mediate
« Ready to return to ExCo/subcommittee should it be
possible/necessary to reconsider approach