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wrerrmyrvrrrr Michele Graves To: Richard M Stephenson/e/POSTOFFIC!
Spyuttesciy- Richard M Stephenson To: Michele Graves/e/POSTOFFIC! 3
ESS 29/12/2009 13:48 + ect Ruth H BarkerlelPOSTOFFICEL.
i Subject: Re: J Smith letter - redraft for approvall)
Thanks Michele. I am happy with this and am trying to get Manys sign off. I would prefer the xx
millions of transactions per day and up to 750 per second at peak times figures to both be used if
possible.
Ruth - can you have a quick look please?
We don't refer to the specific cases Ms Smith mentions but I think this.is ok as we can't get into the
specifics of individual cases.
limagine she will write again.
The 11000 figure does not seem right - there cant be that many independents in a network of 12000?
Oram I missing something?
Thanks, R
Michele Graves
yom . cc: Ruth H Barker/e/POSTOFFICE!
Gy 2211212009 13:14 Subject: Re: J Smith letter - redraft for approval
Hi Richard
Me again - sorry.
Are you in a position to let me have your final feedback - Alan would like the reply to go out before
Christmas and itis the last day in the office for both Alan and I tomorrow.
Regards
Michele Graves -
Executive Correspondence Manager POST
Executive Correspondence Team OFFICE
Post Office Limited
2 1st Floor, Bunhill Row Wing, 148 Old Street, LONDON,
ECV SHQ
Confidential Information:
This email message Is for the sole use of the Intended
reciplent(s) and may contain confidential and privileged
Information. Any unauthorised review, use, disclosure or
distribution Is prohibited. If you are not the intended recipient
please contact me by reply email and destroy all copies of the
original message.
Hi Richard
Many thanks - yes I was aware of the reply to Michael Rudkin as I pretty much wrote most of it but just
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x. Michele Graves To: Richard M StephensonluPOSTOFFIG
' ce: Ruth H Barker/e/POSTOFFICE, fe
2111212009 13:50 Subject: Re: J Smith letter - redraft for approvals)
Hi Richard
Many thanks - yes I was aware of the reply to Michael Rudkin as I pretty much wrote most of it but just
wasn't sure if it was suitable to use here.
Ihave made the suggested amends and added some comments in blue, to answer your own in red.
Re your amends on my first draft, page 2, the replacement para starting ' All new software’ was
already included in para 2 of the first page, so have removed and left at the start - I think it reads ok
but fresh eyes and all that.
Many thanks again for all of your help - I know how busy you are.
If you could let me have final approval, I will pass to Alan for sign off.
Kindest regards,
BS
I
ECT 377-08 Smith Jacqui MP v2.doc
Michele Graves ~
Executive Correspondence Manager POST.
Executive Correspondence Team OFFICE
Post Office Limited
= 1st Floor, Bunhill Row Wing, 148 Old Street, LONDON,
EC1V 9HQ
Confidential Information:
This email message Is for the sole use of the intended
reciplent(s) and may contain confidential and privileged
information. Any unauthorised review, use, disclosure or
distribution is prohibited. If you are not the intended recipient
please contact me by reply email and destroy all coples of the
original message.
Richard M Stephenson
_ Richard M Stephenson To: Michele Graves/e/POSTOFFIC
tte cc: Ruth H Barker/e/POSTOFFICE!
21/12/2009 13:04
red ° Subject: J Smith letter
Michele - see attached. I am heading off to a meeting now but Ruth is around to chat. We have made
some comments throughout the letter in caps. I have also sent you an email sent by Alan recently
which has some useful lines. We have used one of them to replace a para in the letter. We need to
be careful about paragraphs talking too much about the system failing so we have changed this. Have
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” a look and see what you think. I do need to speak to Mary about this (I have already but need to
review final letter with her) so can you revise this letter and send back to me? I am sure Mary will be
a3
happy but we do need to double check with her. Thanks, R J Smith MP211209RS.doc
Richard Stephenson
Director of Commercial Public Relations
Royal Mail Group
100 Victoria Embankment
London
EC4Y 0HQ
www.royalmailgroup.com
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Your Ref: 01090013
Our Ref:ECT 377/09
Rt Hon Jacqui Smith MP
House of Commons
LONDON
SW1A OAA
24 December 2009
Dear Ms Smith
Thank you for your letter of 1 December in relation to one of your constituents, Mr
Julian Wilson and your concerns around the Horizon computer system. May I first
apologise for the delay in reply.
Horizon is a computerised accounting system which operates in around 12,000 Post
Office® branches, [IS THERE A MILLIONS PER DAY FIGURE WE CAN USE HERE?}
processing over 750 transactions per second at peak times. RICHARD THIS FIGURE IS
CONFIRMED AS CORRECT. I HAVE ASKED AGAIN FOR A DAILY TRANSAX FIGURE
BUT MAY NOT GET IN TIME TO INCLUDE - IF SO ARE WE HAPPY TO GO WITH PER
. .- SECOND TIMES? All new software releases on Horizon are subject to rigorous testing...
~eseo-~ priorto going live in order to ensure the accuracy of the accounting processes. Our weet
ongoing monitoring and control processes mean that any issues in a ‘live’ operation
are quickly identified and resolved, and ensure that should part of the system or
equipment fail, the integrity of the accounting records is always maintained.
Over the years the system has been tested both in and out of criminal and civil court
and has not been found wanting. Whilst I recognise that some subpostmasters have
found this difficult to accept, there is no evidence to doubt the integrity of the Horizon
system and we retain absolute confidence in its’ robustness and reliability.
Moving forward, as with any business we constantly look to how we can operate more
cost effectively but at the same time update and improve our systems and processes.
We are currently in the process of implementing a new version of Horizon, called
Horizon Online™. The preparation for the roll out of new counter software is at an
advanced stage and completion is expected to be by the end of April 2010. The new
system has been designed with extensive input from subpostmasters and other users
and will increase efficiencies and enhance the role of the subpostmaster.
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a . . . Page.2 of 2
In 2010/11 alone, the new system will also save Post Office Limited £56m due to a
newly negotiated contract.
The relationship between Post Office Limited and the 11,000 [IS THIS FIGURE
CORRECT?) RICHARD: THIS WAS USED LAST WEEK BY THE WELSH EXT RELS TEAM
SO I HAVE TAKEN AS CORRECT, I HAVE ASKED WHERE THEY GOT IT FROM BUT
THEY CANNOT GET BACK UNTIL TOMORROW or so independent business people who
operate a Post Office® service is of paramount importance to us and I fully agree that
it is vital that our subpostmasters and mistresses are provided the highest level of
support. I believe that the systems we have in place deliver this.
I trust the above information has allayed your concems but should you have any
further questions please do let me know.
Yours sincerely
Alan Cook
-- - Managing Director wee an eee
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R
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wes ttires2ey Richard M Stephenson To: Michele Graves/e/POSTOFFICE:.
eeSSe f , ce: Ruth H BarkerelPOSTOFFICE(
21/12/2009 13:04 Subject: J Smith letter
. Michele - see attached. 1 am heading off to a meeting now but Ruth is around to chat. We have made
some comments throughout the letter in caps. I have also sent you an email sent by Alan recently
which has some useful lines. We have used one of them to replace a para in the letter. We need to
be careful about paragraphs talking too much about the system failing so we have changed this. Have
a look and see what you think. I do need to speak to Mary about this (I have already but need to
review final letter with her) so can you revise this letter and send back to me? I am sure Mary will be
fa
happy but we do need to double check with her. Thanks, R J Smith MP211209RS.doc
Richard Stephenson
Director of Commercial Public Relations
Royal Mail Group
100 Victoria Embankment
London
EC4Y 0HQ
Email: richard.m.stephensoni
www.royalmailgroup.com
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Rt Hon Jacqui Smith MP
House of Commons
LONDON
SW1A OAA
17 December 2009
Dear Ms Smith
Thank you for your letter of 1 December in relation to one of your constituents, Mr
Julian Wilson and your concems around the Horizon computer system. May I first
apologise for the delay in reply. .
Horizon is a computerised accounting system which operates in around 12,000 Post
Office® branches, [IS THERE A MILLIONS PER DAY FIGURE WE CAN USE
HERE? processing over 750 transactions per second at peak times. All new software
teleases are subject to rigorous testing before they go live in order to assure the
accuracy of the accounting processes. The system and the processes around it offer
an extremely high level of security and resilience WITH SIGNIFICANT FAILSAFE
-PROCEEDURES TO ENSURE [REMOVE : and are designed to ensure that should part
of the system or equipment fail, which all systems do from time to time,] the integrity
of the accounting records are ALWAYS maintained.
Over the years the system has been tested both in and out of criminal and civil court
and has not been found wanting. Whilst I recognise that some subpostmasters have
found this difficult to accept, there is no evidence to doubt the integrity of the Horizon
system and we retain absolute confidence in its’ robustness and reliability.
Moving forward, as with any business we constantly look to how we can operate more
cost effectively but at the same time update and improve our systems and processes.
We are currently in the process of implementing a new version of Horizon, called
Horizon Online™. The preparation for the roll out of new counter software is at an
advanced stage and completion is expected to be by the end of April, [REMOVE aside
from a few offices that may be temporarily closed, for example for refurbishment
work. The main benefit of the new system is a significant reduction in running costs
compared to the old system under the previous contract with the supplier]. THE NEW
SYSTEM WILL INCREASE EFFICIENCIES AND ENHANCE THE ROLE OF THE
SUBPOSTMASTER. In 2010/11 ALONE, THE NEW SYSTEM WILL ALSO SAVE POST
Your Ref: 01090013
Our Ref:ECT 377/09
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aoe : . Page 2 of 2
OFFICE LTD [this saving will be] £56m DUE TO A NEWLY NEGOTIATED CONTRACT.
The new system will also make it easier for users and has been designed with
extensive input from subpostmasters and other users.
[REMOVE PARAGRAPGH As with the current system, the design ensures that
accounting integrity is ALWAYS maintained EVEN when A system failure occurS.
Significant amounts of testing effort are devoted to proving that not only does the
system fail in a way that enables integrity to be maintained but also to ensure that the
system alerts those responsible for its maintenance when a failure occurs.]
REPLACE WITH : All new software releases on Horizon are subject to rigorous testing
prior to going live in order to ensure the accuracy of the accounting processes. Our
ongoing monitoring and control processes mean that any issues in a 'live' operation
are quickly identified and resolved, and ensure that should part of the system or
equipment fail, the integrity of the accounting records is maintained.
The relationship between Post Office Limited and the 11,000 [IS THIS FIGURE
CORRECT?) or so independent business people who operate a Post Office® service is of
paramount importance to us and I fully agree that it is vital that our subpostmasters
and mistresses are provided the highest level of support. I believe that the systems we
have in place deliver this.
~_ I trust the above information has allayed your concerns but'should'you have any =”
“further questions, then please do let me know.
Yours sincerely
Alan Cook
Managing Director
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; Richard M Stephenson To: Michele Graves/e/POSTOFFICE
BSS 12/2009 12:58 Subject Fecha ake ena naw draft for approval
Michele -'see below for background info - and sending letter in another email now
— Forwarded by Ruth H Barker/e/POSTOFFICE on 17/12/2009 18:14 —
Alan Cook To: Hayley Fowelle/POSTOFFICE___
Oerrsr2008 12:1 * VemelsteiPOSTOFFICE(
Stephenson/e/POSTOFFICE.
Barker/e/POSTOFFIC! ‘racy Abberstein™
Subject: j dfatt tor approval
This is good - thank you
Tracy as I am on blackberry can you send from my email cabinet please
Thanks
Alan
taeenseneenenee
Alan Cook
Managing Director
Post Office Ltd
cttenennteennene
Message sent via blackberry a
Hayley Fowell
-—- Original Message ——
From: Hayley Fowell
Sent: 06/11/2009 11:58 GMT
To: Alan Cook
Cc: Michele Graves; Paula Vennells; Richard Stephenson; Ruth Barker
Subject: Michael Rudkin email - new draft for approval
Hi Alan,
Thank you for your feedback. We have redrafted the email to ensure a more supportive tone and have
included further detail to support our stance. Please do let me know if this is acceptable and if so,
how you would like to send.
1 apologise for the delay in getting this to you and very much appreciate your help with turning this
around quickly as I know you are very busy.
Regards,
hayley
DRAFT RESPONSE TO MICHAEL RUDKIN - VERSION 2
michaelrudkin¢
Dear Michael
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s
Thank you for your email of 15 October and for bringing to my attention the article in Convenience
Store magazine and the meeting being held on Sunday 8 November in Fenny Compton. My apologies
for the delay in reply.
We are aware of the recent interest being taken in the robustness of the Horizon system by some
external parties. I am not sure exactly why this is as the system has been in place for around ten
years, successfully recording millions of transactions each day, and has proved time and time again to
be robust and fit for purpose.
Where concerns have been raised about Horizon or the computer equipment , they have been taken
extremely seriously and have been thoroughly investigated. I recognise that some people may find it
difficult to accept but no evidence has been found pointing to any fault with the system or technology.
All new software releases on Horizon are subject to rigorous testing prior to going live in order to
ensure the accuracy of the accounting processes. Our ongoing monitoring and control processes
mean that any issues in a 'live' operation are quickly identified and resolved, and ensure that should
part of the system or equipment fail, the integrity of the accounting records is maintained
In summary, we remain fully satisfied that the system and the processes around it offer a very high
level of security and resilience. We are completely confident that the system is capable of handling
the financial services transactions undertaken at our branches, and that it will continue to support any
new services that we plan to introduce in the future.
Thank you for your support on this issue - itis much appreciated. I do hope that you feel you can now
‘speak to your NFSP Branch and Region with confidence at Sunday's meeting.
Kind regards
Alan
Alan Cook
Alan Cook
06/11/2009 07:25
‘i¢fiard Stephenson"
Subject: Re: ontracts{)
Hayley/Michele
Now I see this it all comes back to me. we definitely owe him a fuller response than currently drafted.
He is offering to help diffuse a tricky issue. We need to give him more if he is going to stand up and
defend us -
Also we cannot apologise for the delay due to me holiday - that was 2 weeks ago!
We seem to have left this until the last minute but clearly we now need to get this one done today
Alan
seneneneneeess
Alan Cook
Managing Director
Post Office Ltd.
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=<
seesenesensenes
Message sent via blackberry
Paula Vennells
—— Original Message —
From: Paula Vennells
Sent: 06/11/2009 06:27 GMT
To: Ruth Barker
Cc: Hayley Fowell; Michele Graves; Alan Cook
Subject: Re: Contracts
Ruth, the attachment needs to be in email format atpls- Alan and I are out ofthe office and so need.to
view it on Blackberrys.
Also, we need the original email; what was attached looked more like a powerpoint of a press cutting.
Thx Paula
Ruth H Barker
-—— Original Message —
From: Ruth H Barker
Sent: 05/11/2009 17:52 GMT
To: Paula Vennells
Ce: Hayley Fowell
Subject: Fw: Contracts
Hi Paula
Hayley's asked me to forward you the original email from Michael Rudkin
Any questions please do not hesitate Hayley or myself.
Ruth
— Forwarded by Mary Fagan/e/POSTOFFICE on 16/10/2009 15:41 ——
Alan Cook To: Mary Fagan/e/POSTOFFICE
: ce: ET, David X Smith/e/POST!
1811072009 18:25 Burley/eIPOSTOFFICEY GRO
Subject: Fw: Contracts
Mark
Mary
I know you are busy right now but in Richards absence can you get someone to see what we can
about this developing situation outlined below?
For some strange reason there is a steadily building nervousness about the accuracy of the Horizon
system and the press are on it as well now
Itis the more strange in that the system has been stable and reliable for many years now and there is
absolutely no logical reason why these fears should now develop
My instincts tell that, in a recession, subbies with their hand in the till choose to blame the technology
when they are found to be short of cash
Bizarrely the author of the email below was a very senior postmaster in the Fed who I know well but
who's wife was found to be defrauding us and we have prosecuted
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“a
We should therefore be careful of approaching him for further info without talking to Paula first
Not sure what we can do but! do see this as an escalating and serious challenge - particularly as a
new version of Horizon is due to go live in Februaryl!
Thanks
Alan
Alan Cook
Managing Director
Post Office Ltd
- Michael Rudkin®._.
GRO
15/10/2009 13:57
To: "Alan Cook" G RO 7
cc:
Subject: Contracts
Dear Alan
See attachment!!!
I presume you have already seen the article in the convenience store magazine.
My question to the business is;
+ esses Issthis article likely to have any-impact.on the contracts we already have with our existing : .
banking partners. Will our prospects of becoming a Post Bank be delayed if our clients start
to questions Horizons abilities and is it fit for purpose for the foreseeable future?
The reason for my question is, a Horizon pressure group has formed and they are to meet on Sunday
8" November 09 at Fenny Compton Hall in the Midlands and I wish to keep a balanced view and
present this to my NFSP Branch and Region before anyone attends this meeting. This should also
minimize adverse publicity to our industry which is already receiving enough bad press at the
moment. Currently the BBC, Panorama and Watch Dog researches are digging the dirt here in
Leicestershire.
I hope my request is not an imposition on your time or deemed as impertinent.
Kind Regards
Michael Rudkin
Ibstock Post Office & Newsagents
118/120 High Street
Leicester LE67 6LJ
michaelrudki d
[attachment "convenience store Hindocha.ppt" deleted by Paula Vennells/e/POSTOFFICE]