§ Mr. AllanTo ask the Secretary of State for Health what estimate he has made of the cost of reaching a settlement with EDS in respect of the cancelled contract for NHS e-mail and directory services. [185067]
§ Mr. Hutton[holding answer 19 July 2004]The National Health Service Information Authority (NHSIA) has reached a settlement with Electronic Data Services Corporation (EDS), following mediation, without admission of liability on either side. The terms provide for the payment by the NHSIA of outstanding invoices. They further provide that should EDS make redundancies as a consequence of the change of service provider, the NHSIA will indemnify the actual costs incurred. The NHSIA will also make payments in respect of costs relating to the conclusion of the project. Further details of the settlement are covered by a legally-binding confidentiality agreement.
The exact costs are not yet known, but will be clarified when the contract ends in October.