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Minutes — 10‘ August 2010
POL Investment Committee
Attendees: I Dave Smith, Mike Moores, Paula Vennells, Gary Hockey-
Morley, Debbie Moore, Mike Young, Stephen Ballantyne,
Hugh Flemington, Stephen Hirst (Chair), Lisa Smith
(minutes)
Case presentation only: Phil Bowdery, Keith Rann, Colin
Apologies: Brian Deveney, Susan Crichton
Item/Business Case: Sponsor:
1 Minutes from 12‘ July approved
Stephen Hirst provided an update on the Q1
Project List review, with the current OpEx &
Capex forecasts within budget and committed
spend at £11.5m OpEx and £22m CapEx. Further
detail will be provided at the ET meeting on 24th
August.
2 Action points from previous meetings
AP72&73: Mike Young advised that Fujitsu
compensation would be resolved soon. Ongoing.
AP97: Future of International payments raised at
POFS Board, with POFS agreeing to review. Gary
will update committee in November. Ongoing.
AP102: Gary will review implementation to ensure
financial controls on Travel Money rate matching
will be cleared with Finance. Ongoing.
AP103: Paula will review CRM case regarding
sponsorship. Ongoing.
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(ref
100)
ATM 100 Rollout
Mike Moores confirmed that BoI funding the full
project with cost recovery through commissions
doesn’t improve economics. Mike also advised
that the possibility of rates charges needs to
be made clear to agents.
Paula Vennells asked who will be having the
conversation with agents and requested for the
Network team to be involved where relationships
already exist.
Instruction was given to persuade agents where
possible, not to have an ATM installed. A target
of 50 installations was proposed by Gary Hockey-
Morley.
Approved.
(ref
101)
AP104
AP105
ATM Business Rate Charge
Gary Hockey-Morley outlined that the case sets
out a request for the following four items:
e £100k legal costs to fight the case
e Continue to pay the charges until the
decision date
e POL to enforce contractual liability of
agents should we lose
e Do we recover charges paid from the agents?
Mike Moores commented that it would be better
supporting the agents behind the scenes; however
Hugh Flemington suggested that by switching the
payment process we could send a message that we
are not confident of winning.
Mike Moores queried who the case was against.
Hugh Flemington agreed to check whether it was
Bank of Ireland or subpostmasters. (Hugh has
since confirmed that POL are acting on behalf of
Bank of Ireland in the two cases going to LVAC
in November. BOI are the occupiers for rating
purposes)
It was agreed that as of now, agents need to be
made aware that they will be liable for costs
going forward should the case be lost.
Gary will update the committee on the outcome of
the case (November).
Hugh
Flemington
Gary
Hockey-
Morley
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The business case was approved for the
following:
e £100k legal costs to fight the case
e POL to continue paying charges until the
decision date
e We will enforce liability of Agents post
decision date should we lose.
e POL will recover charges paid from the
agents.
Approved.
(ref
102)
AP106
AP107
AP108
Supply Chain Vehicle Replacement
Keith Rann introduced the case and informed that
since sending the papers out, procurement have
advised Mercedes cannot be used as they won’t
sign up to the T&C’s.
Hugh Flemington suggested he would look into an
emergency procurement option but was doubtful.
Mercedes have been the only supplier for heavy
vehicles as not every supplier has the armour
ability. Therefore the request is now for 11
vehicles at £1.314m
Dave Smith asked if we can keep all the vehicles
running for another year. Keith advised that it
would create a significant risk due to high
probability of failure.
Dave stated that there is no trade off outlined
in the paper for running the vehicles for
another year. The expected additional costs,
risks and lost opportunity for running for one
more year needs to be clear in the paper.
Keith Rann agreed to update the case to include
this information so it can then be circulated
via email.
Dave advised he would then take the case to Moya
Greene for final approval.
Not approved.
Hugh
Flemington
Keith Rann
Dave Smith
(ref
103)
AP109
POCA
Gary Hockey-Morley agreed to review project team
costs.
Approved.
Gary
Hockey-
Morley
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7 ID Management
tos) Dave asked if there was duplication of work
regarding front of office. Gary Hockey-Morley
confirmed there wasn’t.
Approved.
8 Queue Busters
(ref
105
) Approved.
9 CORP PIR
{ree Mike Moores did not believe the statement
) regarding 370 offices until March 2011.
Paula Vennells advised that it was 373 not 370. Hugh
AP110 Hugh Flemington agreed confirm the Gamma & Union I Flemington
commitment made in connection with Crowns.
AP111 I stephen Ballantyne queried if all additional Stephen
cases were included in the PIR. Stephen Hirst eal
agreed to check.
Approved.
10 Property Cases
(ref ¢ Kensington High Street Crown office
p14) :
relocation
(ref
p15) e Hull (Former Crown) Disposal
(ref e Hemel Hempstead Disposal
p16)
e Southampton 999 year lease approval
(ref
17
pi?) + Lichfield sub-let
(ref
p18) e Farringdon Road MSPO relocation & fit out
(ref ¢ Security Alarms Upgrade
p19)
(ref e Birmingham Midway Cash Centre Security
111) Turnstile
(ref All property cases approved.
p20)
11 Direct 2010: Online Campaign Measurement &
(ref I tracking
107
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Gary Hockey-Morley asked if BoI would challenge Paula
AP112 I the contact centre cross sales as we don’t want Vennells
to carry out the feasibility if they object to
the full implementation. Paula Vennells agreed
to check.
Approved.
12 Supply Chain DCPC Training ;
ree Debbie Moore challenged why staff records uplift Mike Young
abs is not within PALMs which is free. Mike Young
agreed to check.
Approved.
13 New Futures
(ref Mike Moores requested Stephen Ballantyne raise Stephen
109) : ; . Ballantyne
with Group Finance as POL are expecting to treat
Ap114 I all costs associated with the separation from
group as exceptional.
Approved.
14 PayPal - Verification Cash In and Bill Payment
1S) Mike Moores said the impression was that Group
will not be able to fund the activity.
Approved.
15 Cases noted:
usy ¢ Halifax deposits (£50k Client Funded)
(ref e Mails Transaction Re-engineering
re
113)
e Mails Small Business Offer - Concept
(ref Development
114)
e Envelope Inserter for P&BA (£16.3k)
(ref
115) 2
e PFW International Changes (£4k)
(ref
116) e Retail Marketing (£20k)
iy ¢ Oldham Lease Renewal
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ve e Design maintenance & tools for formats
p21) CMS DDA Requirements (£47.5k)
(ref * isd
AAS Feasibilit
118) ° ¥
(ref
119)
16 AOB
(ref e Transitional Management
caer Debbie raised this as a late case for
authorisation of additional resource to
manage the transitional pool.
Approved.
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Minutes — 10 August 2010
POL Investment Committee
Action points from previous POL IC meetings:
Ref Date Action Description Resp. Updates/Comments Status Date
Raised Closed
25 08/02/10 To consider when a Gamma PIR might be Mike Moores On hold while other BOI discussions are Ongoing
appropriate and for the inclusion of / Stephen taking place
FS and impact of Crown refurbs on Hirst
Gamma payment
35 22/02/10 Consider a formal delegated Stephen Susan Crichton is leading on this. It is ongoing
authorities policy for JVs Hirst / work in progress.
Susan A proposal of a POFS IC has been raised.
Crichton Response has been received from POFS. Still
ongoing.
37 08/03/10 Simon Mott to clear the approach for Mike Young Group have started reviewing and will brief Ongoing
future Security cases which reference / Stephen Hugo.
the plan will not require Group Hirst Forecast spend reduced by £1m to £1.7m.
approval, although they may have a
negative NPV.
72 19/05/10 Horizon Online drawdown case to come Mike Young Negotiations ongoing - expect to resolve Ongoing
back to POL IC once clear picture of soon.
costs.
73 19/05/10 Present a mandate outling management Mike Young Negotiations ongoing - expect to resolve Ongoing
of compensation from Fujitsu soon.
97 28/06/10 Raise future of International Payments Gary Raised at POFS board, with POFS committing
product at POFS Board Hockey- to carry out a review. Gary to update in
Morley / November.
Dave Smith Ongoing
www.postoffice.co.uk
ered Office 148 Old Street, London, EC1V 9H
ic)
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103
104
105
106
107
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109
110
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112
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Using potential tenant, negotiate with
the Cantebury landlord in order to
bring the premium cost down
Mike Moores wanted to check the
financial controls around the rate
matching. Gary agreed to have the
financial controls around travel money
rate matching cleared by Finance.
Mike Young to discuss with Paula about
sponsoring the CRM project
Check who the ATM Business rate case
is against
Gary to update committee on the
outcome of the ATM Business Rate court
case.
Investigate possibility of an
emergency procurement option for
dealing with Mercedes for supply of
armoured vehicles.
Supply Chain Vehicle Replacement case
to be updated with expected additional
costs, risks and lost opportunity for
running for one more year.
Dave Smith to agree updated Supply
Chain Vehicle case with Moya Greene
Review POCA Phase 3 project team costs
Confirm Gamma & Union commitment made
in connection with Crowns.
Confirm all additional cases are
covered in the CORP PIR
Check that BoI would not challenge the
contact centre cross sales project
Colin
Carter
Gary
Hockey-
Morley
Mike Young
Hugh
Flemington
Gary
Hockey-
Morley
Hugh
Flemington
Keith Rann
Dave Smith
Gary
Hockey-
Morley
Hugh
Flemington
Stephen
Hirst
Paula
Vennells
In negotiation with landlord to reduce
premiun.
Gary will review implementation plan to
ensure financial control checks are
covered.
Paula will review.
Hugh confirmed that POL are acting on
behalf of Bank of Ireland in the two cases
going to LVAC in November. BOI are the
occupiers for rating purposes
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Ongoing
Ongoing
Ongoing
10/08/10
Closed
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113 10/08/10 To see if Supply Chain DCPC Training = Mike Young
staff records uplift could not be done
through PALMs which is free.
114 10/08/10 Raise New Futures case with Group as Stephen
POL are expecting to recover costs Ballantyne
from Group.
Next POL IC 7th September
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