News : Liverpool Council Expects to Save by Ending Joint Venture with BT
Oct 22, 2014 -- Liverpool Council expects to save over the next three years by terminating its controversial ICT joint venture with BT at the end of this month, according to an official council report.
The move comes as BT refused to significantly reduce the price of the contract despite a leaked report in 2010 showing that the telecoms company had been "excessively marking up" the cost of equipment each year. BT said it believed the report was "based on incorrect assumptions and generally inaccurate."
BT will hand back its 60 percent share of the Liverpool Direct Limited (LDL) joint venture, which provides call centre, benefits and ICT services to the council.
The council will assume full ownership of the company on 31 October, according to a report due to be discussed by cabinet members on Friday.
The decision to terminate the joint venture was made in February after BT refused to offer price reductions during discussions with the council in autumn 2013.
"BT feels unable to commit to any further price reduction within the contract as they need to sustain their own financial position," a council report published in February said.
Posted by Veronica Silva Cusi, news correspondent
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Published: Friday, October 24, 2014