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EDS (Compensation)

Volume 450: debated on Wednesday 11 October 2006

To ask the Chancellor of the Exchequer what contracts are to be offset with the £26.5 million compensation agreed with EDS in respect of the tax credits computer system; which Government Departments are involved; and if he will make a statement. (78957)

Under the terms of the settlement, EDS is required to make instalment payments to HMRC, and cannot offset these payments against any other contracts. The terms of the settlement have no part to play in whether or not a particular contract is awarded to EDS, which can only be determined by relevant Departments in accordance with the procurement rules.