POL00149575 - Powerpoint - Options for the Scheme

Evidence on official site

POL00149575
POL00149575

Options for the
Scheme

POL00149575
POL00149575

« 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

POL00149575
POL00149575

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 _
POL00149575
POL00149575

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
POL00149575
POL00149575

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’

POL00149575
POL00149575
POL00149575
POL00149575

Rollover

¢ All elements of current scheme

¢« WG apparatus and process maintained

* POL pre-agrees to mediate all cases, including criminal cases

POL00149575
POL00149575

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

POL00149575
POL00149575

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)

POL00149575
POL00149575

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

POL00149575
POL00149575

* 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

POL00149575
POL00149575

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

POL00149575
POL00149575

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

POL00149575
POL00149575

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

POL00149575
POL00149575

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

POL00149575
POL00149575

¢ 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

POL00149575
POL00149575

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
POL00149575
POL00149575

What we can expect

¢ More Fol

« PQs

Debates

Leaks

Unsubstantiated allegations

Continued media speculation

Poss legal challenge — individual/group/JR
POL00149575
POL00149575

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

POL00149575
POL00149575

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