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UK - Politics & policy

Companies abandon ID card project

By Maija Palmer and Jimmy Burns

Published: January 23 2008 22:06 | Last updated: January 23 2008 22:06

Two prominent companies have pulled out of the procurement process for the controversial multi-billion pound identity card programme amid growing concerns that the government is planning to delay the roll-out of the project.

The Financial Times has learnt that the IT services company Accenture and the defence company BAE Systems have decided not to pursue contracts linked to the biometric identity card system, with IT experts warning that some suppliers are growing increasingly frustrated with the government’s indecision.

The Home Office said last night that the move by the two companies was the result of a “competitive dialogue process” with potential suppliers ahead of the announcement of a short-list of companies who later this spring will be invited to tender for contracts.

“We believe we are still on track for a framework agreement, a contract which creates a list of pre-qualified suppliers, along with a set of agreed contractual terms,” the Home Office said.

Accenture said a “mixture of political and commercial reasons” had led to its decision not to bid. BAE Systems was unavailable for comment last night.

According to the Home Office, Fujitsu Services, CSC, EDS, IBM, Steria and Thales are still interested in the identity card project.

The companies said that while the government may delay some parts of it, such as the issue of biometric cards to UK citizens, there would still be scope for other work in the near term, such as constructing the database to house the identity data.

The Home Office’s Identity and Passport Service, which is running the scheme, aims to have a list of five prime suppliers in place by May. However, the Home Office confirmed on Tuesday that the government was considering a delay in the main roll-out of ID cards to British citizens.

Leaked Home Office documents show a revised strategy in which the issuing of significant volumes of ID cards alongside a new generation of passports will begin in 2012, two years later than previously planned.

Last night the Home Office confirmed a further leak suggesting that smaller volumes of ID cards should first be issued from 2010 onwards to young people to “assist” them in opening up their first bank accounts as well as to individuals employed in “positions of trust”, such as teachers and social workers.

The British Bankers’ Association said that it had not been involved in any discussion on the use of ID cards by young people.

“This has come like a bolt from the blue,” it said.

Meanwhile, Damian Green, shadow immigration minister, said last night that the leaked documents showed that the government was engaged in an “outrageous plan” which was “staggering from shambles to shambles”.

Mr Green said: “They are trying to introduce ID cards by stealth by making them necessary if you want to work for the government, take out a student loan or open a student bank account.

“This is blackmail and a desperate attempt to bolster a failing policy.”

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