Libra PFI warning

The National Audit Office this week urged government departments to learn from the Lord Chancellor's Department's (LCD) experience of the private finance initiative (PFI), after soaring costs and massive delays plagued a project aimed at standardising technology in magistrates' courts.

The report on the Libra project - which involves the supply of IT infrastructure, and office software and equipment - commended the LCD for 'recognising the lessons over the life of the project and taking action on them', but complained that it was still ongoing after ten years.

Projects first began in the early 1990s but failed, so the LCD signed an 11-year, 146 million PFI agreement with sole bidder ICL - now Fujitsu Services - in 1998.

From then on, the project came under strain from constant re-negotiations and breach of contract by ICL.

The whole scheme has so far cost 318 million, and the LCD will now have to bring in third parties to provide software and run the application.

Audit office head Sir John Bourne advised other government agencies considering a PFI deal to be wary if there were few initial bidders, set up 'should cost' models and put contingency plans in place in case it all went wrong.

Court Service chief executive Ian Magee said that despite teething troubles with Libra, new office technology had now been delivered to almost 90% of magistrates' courts staff.

'The new infrastructure provides for the first time a workstation for all staff and a national e-mail system allowing all magistrates' courts committees to communicate with each other securely,' he added.

Paula Rohan