Sunday, 29 May 2011

CSC Contract with UK NHS now under severe scrutiny and likely to be canceled

In Prime Ministers Question Time in the Houses of Parliament today the Primie Minister said that no mmore contracts will be signed with CSC until the Audit Office has carried out a complete scrutiny of the company. An MP also asked that no more money be spend on NPfIT as it was a waste of money. 'CSC has failed with Lorenzo' he said. See this link for what was said. Start at the 28th minute.

Here is the text of was said in Parliament. It is taken from Hansard the UK Parliament's record of debates:-

Mr Speaker: Closed question, I call Mr Richard Bacon.

Computer Sciences Corporation
Q12. [54967] Mr Richard Bacon (South Norfolk) (Con): What discussions he has had with the Minister for the Cabinet Office and the Secretary of State for Health on the performance of Computer Sciences Corporation in installing Lorenzo software within the national programme for IT in the NHS.

The Prime Minister: We are very concerned that the NHS IT projects that we inherited were of poor value for money, an issue we raised repeatedly in opposition. According to the National Audit Office, even in 2008, delivery of the care records system was likely to take four years more than planned. Since coming into government, we have reviewed the projects with the intention of making the best of what we have inherited. In part, as a result of our work, the Government have cut £1.3 billion from the cost of the national programme for IT in the NHS, including planned savings of at least £500 million from Computer Sciences Corporation.

Mr Bacon: Does the Prime Minister agree that the NHS IT programme will never deliver its early promise, that in particular CSC has failed with Lorenzo and that, rather than squandering £4.7 billion that is still unspent, the solution is to negotiate a way forward that frees up billions of pounds for the benefit of patients?

The Prime Minister: I agree with my hon. Friend that we are absolutely determined to achieve better value for money. Let me reassure him that there are no plans to sign any new contract with Computer Sciences Corporation until the National Audit Office report has been reviewed and until the Public Accounts Committee meetings and the Major Projects Authority reviews have taken place. The Department of Health and the Cabinet Office will examine all the available options under the current contract, including the option of terminating some of, or indeed all of, the contract.


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