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back to article Gov will pay £2.25m compo to ID card suppliers

The cost of compensating suppliers after the scrapping of the ID card scheme is likely to hit £2.25m, Home Office Damian Green has confirmed. Green disclosed the figure in a letter to former Labour Home Secretary and erstwhile ID card enthusiast David Blunkett, the Daily Telegraph reports. On top of the payments of £2.25m to …

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Grenade

Typical political scumbaggery

Complaining about the cost of the break clauses in contracts that Blunkett himself signed up to.

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Unhappy

Complain about it?

He should bloody pay for it; pocket change from expenses, probably.

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Leads me to wonder...

...does Blunkett have any financial interests in any of the companies which were contracted to manage the ID cards, and if so, are those companies receiving compensation? Such conflicts of interests shouldn't be allowed, in my opinion, but I bet they are...

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Why yes he does

In 2007, David Blunkett registered he had a financial interest in a Texan company called Entrust which was bidding for work on the British card:

http://www.guardian.co.uk/politics/2007/mar/25/uk.idcards

Blinky also seems to be having memory problems:

'Blunkett seeks 'end to ID cards'

'Former Home Secretary David Blunkett says the government should scrap plans to introduce ID cards for all in favour of mandatory biometric passports.'

http://news.bbc.co.uk/1/hi/technology/8022791.stm

But look on the bright side, Shagger Blunkett was being spied on by News International at the same time he was being paid to write his column for 'The Sun'. Apparently he's outraged by the intrusion on his privacy.

Personally I feel sorry for the dog.

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Anonymous Coward

You see

"Just developing the "policy, legislation and business case" attracted a £41m price tag."

And we wonder why this country is so wrapped up in red tape when we support the industries that makes this stuff up with as much money as they can stand being thrown at them.

Better off investing in sci/tech industry, they might at least come up with something that people will want.

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Stop

Seeing as hardly anybody in the UK supported the ID card project...

Wouldn't it be wonderful if these so called "intelligent" politicians, who supposedly represent the majority interests of the electorate, could be held accountable for these costs and made to repay the country in full.

I guess the only mitigation is that Blunkett couldn't possibly have read what he was signing.

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Anonymous Coward

Because he can't see! OH I SEE ITS FUNNY!

"I guess the only mitigation is that Blunkett couldn't possibly have read what he was signing."

Bit below the belt there mate.

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Coat

it's not Blunkett's fault

He couldn't have read the contract. But his guide dog did.

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His guide dog...

...probably thought up the whole ID card scheme

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@ Cunningly Linguistic

Sorry, had to downvote you - most dogs are not stupid enough to come up with the who fiasco. This could only have been done by a human...

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2.25m

A small price to pay for the death of the scheme. Besides, it's just money into the economy.

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Unhappy

Hmmm....

This "economy", it wouldn't be a euphemism for, "the pockets of the directors of services companies" would it?

Incidentally I suspect they're probably mates with Blunkett and knew damn well this this bird wouldn't fly and just waited for the compo payments to roll back in after it got scrapped!

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Anonymous Coward

The economy

It's money into the wrong industry yes, but still the econony.

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Anonymous Coward

Re: 2.25m

"Besides, it's just money into the economy."

That's an example of the Broken Window Fallacy: http://en.wikipedia.org/wiki/Broken_window_fallacy

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Thank you, Reg..

..for exposing the hypocrisy about this on Blunkett's part.

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WTF?

400K to scrap data - What kind of system was this?

This clearly demonstrates that our personal data was not adequately managed and raises the question whether these so-called IT suppliers are even entitled to compo. What would the resulting system have looked like, had common sense not prevailed in scrapping it?

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Anonymous Coward

400K to do the job right

Not just tip the drives into the nearest skip.

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Anonymous Coward

Could have got any dogsbody

to do a proper job with a lump hammer and a screwdriver.

As a willing dogsbody I'd have done it for free.

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I need say nothing..

.. I refer you to one of the best comments ever posted on this esteemed site regarding ID Cards. Applies equally to Blunkett.

http://forums.theregister.co.uk/forum/1/2010/06/10/id_card_bill/#c_785347

seanj - It gets better every time I read it, thanks!

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Pint

Re: I need say nothing.

Thank you. I was going to post another comment about the frantic renegotiations in the last days of Labour leading to this cost of compensation, but like you say, it applies equally here.

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This post has been deleted by its author

FAIL

So compo for the businesses involved..

but none of the people who purchased one? The government justification for not compensating people who bought a card was that they were aware that a different government would scrap the ID card register and make there cards null and void. However when it comes to businesses the same doesnt apply? Typical from this shower currently in government.

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Hmmm...

The people who bought a card knew a different govt would scrap them, and knew they would not be compensated if that happened.

The companies involved also knew a different govt would scrap them, so ensured they would not be out of pocket by putting clauses in the contract to cover this eventuality.

To give you an example, I once took a 6-month contract with a company the other end of the country. To do this, I rented a flat, which required a 6-month lease. When negotiating my contract with the company, I made them put in a clause which would cover paying out the landlord if they got rid of me before the 6-month period. These clauses are fairly standard throughout business.

However, in this case I see a more sinister reasoning. Blunket negotiates a large cancellation clause as insurance for himself. He knows Labour is unlikely to win the next election. When they loose, and the next govt decides to scap the project, he can point out how much money the govt is spending just to get out of the contracts, quietly ignoring how much money will be saved by doing so.

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what they say

"The government justification for not compensating people who bought a card was..."

that anyone who bought one is a stupid fool.

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Big Brother

Death of Police State ... or is it?

Any price is a small price for personal freedom. UK quickly becoming a "police state", What with spy cameras all over the place and microphones hidden in lampposts so they can eavesdrop on conversations. Litter police, council spies going through our dustbins, offering rewards to the people to report one another "Statzie style. While all along the politicians are filling their coffers through dubious expenses claims and scams.

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FAIL

Why is compensation due?

The companies that signed these contracts knew the scale of opposition to the scheme and that the project was doomed unless new labour could defy the odds and win the last election.

The contracts should have been declared void, purely on the basis of these unfair cancellation clauses. Any company that claims compensation should be blacklisted from future government projects.

Nothing will kill off any hope of resurrecting this hated scheme than massive financial losses inflicted on those who got involved last time.

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Coat

Sir

That Blunkett fella, he must be blind as well as stupid.

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Pirate

Job for the boy

Poor Blunkett - I'm sure his whinge about money down the drain has absolutely no connection with his employment by Entrust, the provider to various European ID card schemes, previously pitching for a snout in the UK ID card trough:

http://www.theregister.co.uk/2007/03/26/blunkett_cashes_in/

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WTF?

So Mr. Blunkett

If I choose to dump an enormous pile of horse manure outside your front door and then run away, the cost of having it removed will be your fault and not mine.

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FAIL

Compo? For what?

What's there to compensate them for? System disbanded; Goodbye suppliers.

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Black Helicopters

£2.25m seems fair

probably just about covered the suppliers bidding costs.

Oh well, back to the old passport, or drivers licence, birth certificate and 3 utility bills everytime I want to prove who I am again. What you need my NHS/NI number? fuck!

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WTF?

urm... WHAT?

"Blunkett argued there was no need to destroy the data, as it could have been integrated into biometric passports"

Are you f**king kidding me?

Someone drown this man please, that is all.

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Happy

Bring back surcharging

Given that the last administration rushed through a load of contracts for ID cards, hence why the companies need compensation for terminating contracts, can we bring back surcharging (like shirley porter got)?, and present the previous ministers with the bill?

Especially as Charles Clarke ignored advise from the LSE and 100 experts in the releveant subjects.

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Pint

Well, look on the bright side Mr Blunkett....

At least the nation now won't have to shell out the 5 Billion quid your government said it would cost to roll out the National Identity Card scheme.

Viewed in that light, the 2.25 million pound cancellation charges seem quite a bargain.

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Paris Hilton

Nothing new there then.

Leeds wasted about the same on inner-city tram and tramline that does not exist.

I suppose a bigger question might be: what to do when public spend is wasted on a project?

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