ITNET AND HACKNEY COUNCIL

Early day motion 560, tabled 6 April 2001 by Brian Sedgemore (Labour). Signed by 9 members.

That this House congratulates Hackney Council for sacking ITnet which it had hired to deal with housing benefit claims and to collect council tax; is shocked by the fact that, from the moment ITnet heard that its contract was at an end, it broke every promise that it made about a smooth handover and instead behaved in a rapacious fashion such as had rarely been seen by a firm working in the public sector; is concerned that ITnet consistently failed to be honest about their improvements or lack of them, their ability to manage problems and the level of resources they used; is aware that ITnet did not understand the verification framework and as a result cost the council millions of pounds as a result of non-compliance; is aghast that ITnet sought to blackmail the council to the tune of ú402,000 when the contract was withdrawn; notes that ITnet demanded ú4 million from the council for IT equipment when the contract was terminated although the open market value of the equipment was only 5 per cent. of demand; regrets that the managing director of ITnet had a personal stake in the company and was always more concerned with profits than providing a service; and calls on ITnet to pay, without the need for recourse to legal action, ú20 million in compensation to local residents for ruining their lives.

Signatures by party: Labour 9.