‘No decision has been taken’ on controversial BT deal, Liverpool Council says

LIVERPOOL Council’s deputy leader Paul Brant yesterday insisted no decision had yet been taken on whether to continue with a controversial joint venture with BT.

On Monday, the Daily Post revealed details of a secret report into negotiations between the council and BT over discussions to extend the Liverpool Direct Limited (LDL) IT deal.

The threat of legal claims was disclosed in a document which members of the city council’s cabinet considered yesterday.

The council and BT are currently re-negotiating the £70m-plus annual LDL contract.

The arrangement is due to end in 2017, but has a break clause which can be exercised in 2012.

BT has offered a number of savings to the deal.

Pulling out of it could cost the council more than £20m and it is understood officials see the most pragmatic way of dealing with the issue is to re-negotiate a cheaper set-up.

But the report debates the possibility of legal claims against the council should the contract be terminated in 2012.

Yesterday the city’s Labour cabinet voted to give chief executive Ged Fitzgerald and council leader Joe Anderson the authority to continue negotiations.

Mr Fitzgerald has also been given delegated authority to terminate the contract if he thinks it is in the city’s best interest.

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