Treasury delays HCI replacement
Alliance worries that provider community will disappear unless decision is reached
The Treasury has thwarted attempts by the Home Computing Initiative (HCI) Alliance to get an alternative HCI scheme up and running by dragging its heels over key decisions.
As CRN exclusively revealed last month (CRN, 19 June), the Department of Trade and Industry (DTI) had considered backing one of two potential HCI alternatives: one from the HCI Alliance and another from former HCI reseller Red PC.
The HCI Alliance had published a nine-page proposal for its Employer-Provided Computing (EPC) scheme.
Simon Dawson, a consultant at the HCI Alliance, told CRN: “The Alliance has put together a proposal that addressed the government’s criticisms [in the previous HCI scheme]. We submitted our proposal to the DTI and have been waiting for clarification from the Treasury on two parts of taxation that EPC is based on.
“Unfortunately, the Treasury has come back and said it is unable to provide this clarification at the moment. Our concern is that unless we receive something soon, the HCI provider community will disappear.”
Martin Prescott, former managing director of Red PC, has since launched his own alternative scheme, the Home Training Initiative. He told CRN: “In effect, the Treasury has knocked back the Alliance’s proposal.”
A Treasury representative told CRN: “Following the removal of the tax exemption on computer equipment, the government is considering how it might refocus support on groups with poor access to technology. The government… would be content to receive suggestions on how we might refocus our support. Over the next few months the DTI will review the options and consider how they might meet government objectives.”