47. LETTER
TO
THE
COMMISSIONER
FROM
THE
DIRECTOR
OF
OPERATIONS,
DEPARTMENT
OF
RESOURCES,
27 MAY
2009
Thank you for your letter dated 7 May 2009. You sought
advice as to whether Ms Smith was in breach of the rules in respect
of claims for her Virgin Media package from March to December
2008 inclusive.
The July 2006 Green Book states in paragraph 3.13.1
that "telecommunications
services" are an eligible expense
against the Additional Costs Allowance (ACA). Beyond this it is
silent.
The telecommunications product market is relatively
complex with a variety of products and packages available to the
consumer. The advice the Department gives to Members when guidance
is requested is that they may claim only for a basic subscription
to digital suppliers, which might include for example BBC News24,
Sky News, Bloomberg etc. We would further advise that any additional
services, such as access to Sky Movies or Sky Sports, would not
be appropriate. However, additional services such as these can
sometimes be rolled into a single low value package with the marginal
cost of the additional subscription thus becoming relatively inexpensive
if not zero.
In administrative terms it has not seemed a good
use of staff time to investigate in detail the digital package
in use by an individual Member unless we had cause for concern.
It is often unclear from Members' claims whether additional subscription
charges are included. It can also be difficult to distinguish
between telephone, mobile, broadband and digital packages.
In her letter of 23 April 2009, Ms Smith notes that
she has had a Virgin Media package which comprises telephone,
line rental, broadband connection and television services. As
a basic package this would be an acceptable claim against her
ACA. However, in common with many Members, we received from Ms
Smith only the monthly summary bill for payment, apart from one
month which included an extra page in respect of 'on demand' items.
You asked for details of Ms Smith's claims for telecommunications
services. Ms Smith claimed for her Virgin Media package during
2008 only. In that year she made claims covering eight months
and seeking reimbursement for a total of £553.20. These claims
were all paid in full. A summary of these claims and copies of
the supporting documentation are attached.
The Department holds only summary invoices for all
months apart from Ms Smith's claim for May 2008, received on 6
June. The May claim had with it supporting documentation that
identified the cost of 'on demand' films. In my view, this is
not eligible expenditure against ACA, a point Ms Smith has accepted
in her letter to you of 23 April 2009.
Ms Smith's subsequent claims for her Virgin Media
package (for September and October) were made with the same supporting
invoice received with her May claim minus the page detailing the
'on demand' items . A member of staff wrote to her in November
pointing this out (letter enclosed). Ms Smith's next claim for
the Virgin package, which was in March 2009, included supporting
invoices for June, July, November and December 2008.
My letter to Ms Smith of 8 April 2009 confirms repayment
by her of the full cost of the television services previously
reimbursed. Please let me know if you need any more information.
27 May 2009
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