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17 January 2006 Suppliers face risks on UK identity schemeSA MathiesonThe risks for IT suppliers bidding to build the UK Home Office’s biometric identity card and register were highlighted this week by a parliamentary vote demanding more financial detail on the plans. On Monday 17 January, the House of Lords (the UK’s revising chamber) voted that the scheme be blocked until the government provides more information on costs: opponents have argued that the data provided by the Home Office is inadequate and unrealistic. The Labour government, which does not command a majority in the Lords, argues that revealing financial details would damage its ability to secure a good deal from suppliers. But Eric Woods, government practice director for UK IT research firm Ovum, disagreed. “If there is more information available, arguably it would reduce the risk for suppliers as they would feel there was more visibility,” he said, describing the argument as “a red herring”. Nick Kalisperas, director of UK IT trade body Intellect, said that suppliers were more concerned with clear contractual requirements which they are capable of delivering, and there is a dialogue between industry and government to achieve this. He added that the Home Office would be hard-pressed to produce financial details, and these would anyway be subject to changes, as many aspects of the scheme have not been finalized. “In some ways, I don’t think the Home Office can win on this one,” he said. The government is likely to seek to reverse changes made by the Lords in the House of Commons. However, although the Commons is still likely to pass the bill, political opposition has hardened. On Sunday, David Cameron, recently-elected leader of the main opposition Conservative party, strongly criticised the plans, dubbing them “un-British”. At last year’s general election, Conservative opposition was more qualified. The next general election is due by 2010, ahead of the scheme’s final phase planned for 2013 or afterwards. Before this, enrolment will be compulsory when renewing documents including passports – for which some biometrics will anyway be required under European agreement – but afterwards, all adults would have to enrol. Only then could the scheme be used for a full range of identity checks. Eric Woods said that suppliers may feel that the years before the next election will allow the scheme to bed in, but they may question revenue flows that would only start after everyone was enrolled. He added that political opposition created other brand and reputation risks for suppliers: “This will come under a massive amount of scrutiny,” he said. Previous stories: © SA Mathieson 2006
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