£232m bill for failed computer system

A £300 million computer project to speed up criminal justice has collapsed following a row between the Government and its supplier.

Ministers have pulled out of a deal to buy software from Fujitsu Services, formerly ICL. But taxpayers will still have to pay most of the bill because the company has already installed the hardware.

The Lord Chancellor, Lord Irvine, whose department is responsible for the Libra Project, slipped out the news in a written statement to the Lords last night as MPs left for their summer break. Ministers will have to explain the mistakes to the National Audit Office.

When the contract for the Libra Project was signed in 1998, the cost was £183million for software and hardware. This soon spiralled to £319million. But the work was hit with delays and last year the company tried to raise the price again.

The Lord Chancellor's Department said: "Assessments show that robust, tried and tested software is now available in the marketplace which could meet requirements at a lower cost."

The Government will have to pay Fujitsu £232 million for the hardware.