Capita Contract (Supplementary) [7]

Session date: 
September 17, 2003
Question By: 
Lynne Featherstone
Organisation: 
Liberal Democrats
Asked Of: 
The Mayor

Question

But then you try and wrap it up by saying "Their quality control was so disgusting that I was on the point of sacking them because it was crap" but actually it was crap because it was not in the contract. It was not in the contract, which is why the quality control was failing and you were absolutely over a barrel in terms of Capita in that contract and you had no earthly hope of sacking them because of your omission with them in that contract. That is the point, Ken.

Supplementary To: 

Answer

Answer for Capita Contract (Supplementary) [7]

Answer for Capita Contract (Supplementary) [7]

Answered By: 
The Mayor

: Let me just correct one point so no one has any doubts about this. There is not a question of there being no earthly chance of sacking them; if we had not agreed broadly this package or something close to it, we would have terminated the contract. Although for me there would have been a political price to pay for that, for Capita I suspect it would have been the end of the firm. What would it have done to their share price? Both sides went into the renegotiations knowing there was a lot at stake. What we have got out of it is an improved scheme, most probably in excess of another £20 million towards transport improvements next year.

You are right. We could not, in something that has never been done before, predict precisely how it would work out and therefore have a huge complex contract that was perfect. We have amended it within months and I think that is as good as you are going to get.