§ Mr. MullinTo ask the Chancellor of the Exchequer what was the original estimate of the cost of the Inland Revenue's computer contract with EDS; what is the current estimate; and if he will make a statement. [31645]
§ Sir George YoungWhen the Inland Revenue signed a 10-year outsourcing contract with EDS in May 1994, its estimated value based on the work load identified in the invitation to tender was £1 billion, which represented a potential saving of £225 million over the in-house costs.
21WThe Inland Revenue and EDS have since agreed that the costs attributable to the work and resources transferred in the first phase of the tranche, in July 1994, were greater than those in the ITT. This increase in work load, which is largely due to the transfer of planned expenditure from third party suppliers to EDS, will increase the value of the contract by £250 million over 10 years. As the adjustment is on a broadly pound-for-pound basis, it does not increase the Department's overall expenditure nor decrease the potential savings.
§ Mr. MullinTo ask the Chancellor of the Exchequer what are the implications of the current difficulties with the Inland Revenue computer project for the timetable for the introduction of self-assessment; and if he will make a statement. [31644]
§ Sir George YoungSelf-assessment will be introduced in 1997 as originally planned. The Inland Revenue and its IT services suppliers, EDS, are fully committed to the successful delivery of self-assessment.