Northern Ireland

Fujitsu ‘lobbied hard’ for hi-tech alternative arrangement on the border ahead of Brexit

Under pressure Japanese technology and services firm is deeply embedded in Northern Ireland

Anti-Brexit billboards on the northern side of the border
Anti-Brexit billboards on the northern side of the border (Niall Carson/PA)

Fujitsu representatives lobbied hard for the introduction of hi-tech “alternative arrangements” on the border ahead of Brexit, according to sources close to negotiations at the time.

The arrangements, championed by then Prime Minister Boris Johnson in 2019, envisaged checking the movement of goods crossing the border using technology.

The Japanese technology and services giant had representatives in and around Westminster at the time arguing for a hi-tech and “trusted trade” system on the border.

The company did not want to comment on the claim it “lobbied hard” for the “alternative arrangements”.

Around 40 jobs are to be lost with the closure of Fujitsu's centre in Antrim
Fujitsu employs hundreds of people in the north

After some debate, the consensus among technology experts, those living on the border and trade groups was that it would be completely unworkable.

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Fujitsu, under extreme pressure over its Horizon Post Office computer system at the centre of the most wide ranging miscarriage of justice in UK history, ultimately went on to win a contract leading a consortium to deliver the trade support service (TSS).

Originally awarded to the consortium led by Fujitsu in the summer of 2020, it was then a two-year £200 million contract. The TSS, which has both technical and advisory arms, has so far cost more than £400m.

Seb Carrington said the ITV Post Office drama shows the power of TV
Seb Carrington said the ITV Post Office drama shows the power of TV

Fujitsu employs approximately 600 in Belfast and Derry.

It has the contract to run information technology services for the Civil Service, the Education Authority, Libraries NI and the Driving and Vehicle Agency, among others.

Just before Christmas, the company was awarded by the Education Authority a new 12-year contract worth up to £485m delivering a school management system for nursery, primary, post primary and special schools. It has provided services for the authority for some years.

These services will improve the learning experience of our young people, supporting teaching through technology, develop skills for the future and support the EA and its educational stakeholders to improve educational outcomes,” according to tender documents.

Fujitsu also runs the NICS human resources system, originally signed in 2006 and valued at around £185m over 15 years. It is a partnership with Capita.

It came to an end in March, 2021, but the parties signed a four year extension with the possibility of it running for six years. The total potential extra value of the contract is £86.8m

The extension was awarded “to protect business continuity”, according to the Department of Finance, adding that negotiations with Fujitsu had “secured a reduction in charges of several million pounds over the terms of the contract extension”.

Fujitsu also has the contract to provide IT services to Libraries NI, signing two deals totalling £34m since 2020. The DVA contract is worth £15m.

Manufacturing NI chief executive Stephen Kelly
Manufacturing NI chief executive Stephen Kelly

TSS was generally welcomed, with manufacturers and traders grateful for the help in the difficult Brexit transition and beyond, said Stephen Kelly, chief executive of Manufacturing NI.

“Generally the feeling about the TSS is people are very grateful it is in place,” said Mr Kelly.

“Yes, it has been clunky and not that user friendly but this was locked in inside zero time and people had no idea what the systems were and what they were meant to be doing. They had to get used to it very quickly.”

On the advisory end, which is largely the responsibility of the Customs Clearance Consortium, an organisation run by the Institute of Export and International Trade, Mr Kelly said there has been a shift and a change of quality of service.

“Time has seen people moving on and it is not as well funded,” said Mr Kelly.