HC Deb 15 January 1991 vol 183 c461W
Mr. Dunn

To ask the Chancellor of the Exchequer whether he will make a statement on the outcome of the Government telecommunications service project negotiation.

Mr. Maples

My right hon. Friend the then Economic Secretary to the Treasury announced in a written answer on 15 February 1990, at column 340, that negotiations would be opened with Racal Data Networks Ltd. (RDNL) to determine whether the company could satisfactorily supply an integrated voice and data telecommunications service for use by Government Departments, to be known as the Government Telecommunications Service—GTS.

The Government and the company have now reluctantly concluded that it would not be possible to achieve agreement on the terms for the provision of such a service. The two parties have therefore agreed that the GTS negotiations should be discontinued. The decision was announced on 7 January 1991. The Departments concerned in the GTS negotiation will now be considering with the Central Computer and Telecommunications Agency how best to meet future telecommunications requirements. This decision does not affect the existing service contracts held by RDNL which the company is continuing to implement—the Government data network —GDN—which serves 18 Departments and includes the NHS family health service network, and the voice network which RDNL is developing for the Department of Social Security.