§ Mr. HaselhurstTo ask the Chancellor of the Exchequer if, following the response of the Paymaster General to the Adjournment debate on 25 February,Official Report, columns 550–54, he is able to announce any further progress on the Government data network project.
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§ Mr. BrookeThe Government have examined the feasible options for meeting the foreseen data communications needs of four major Departments (Department of Health and Social Security, Inland Revenue, HM Customs and Excise and Home Office). The costs of these have been compared with the costs of meeting these requirements through a Government data network (GDN). This was based on tenders received in March from the three consortia (Computer Services Company/British Telecom, Racal-Scicon and Cable and Wireless/International Computers Ltd. (known as ICONS)). The comparison showed that, over 10 years, a GDN would be significantly cheaper than the alternatives, even before taking account of the superior service and greater security offered by a GDN.
The Government have therefore decided to proceed with the Government data network.
The three competing tenders for the GDN have been comprehensively evaluated and the Government intend to award the contract for the GDN service to Racal-Scicon Ltd., subject to final agreement of terms.
As I explained to the House on 25 February, at column 547, we have drawn on the most appropriate technical expertise available in both Government and the private sector in designing the arrangements for security and privacy for the GDN service. We have ensured that the Data Protection Registrar has been kept in touch with plans and that he is content with them. We have also kept Oftel informed during the procurement.
Acceptance testing of the service, using the HM Customs and Excise VALID (VAT Access and Local Input of Data) application system is expected to begin by the end of the year. An operational GDN service will be available early next year.