THE Government has begun talks with companies hoping to win lucrative identity card contracts before the controversial legislation has been passed by Parliament, The Times has learnt.

Home Office officials have met representatives from BT, Sun and Accenture to discuss how the scheme will operate. Meetings will also take place next month with EDS, which was responsible for the disastrous introduction of the Child Support Agency’s £456 million computer system.

The Home Office denies that an “unofficial” procurement process is under way and insists that contracts for the scheme will not be negotiated until after the Bill receives Royal Assent.

However, it is understood that companies are already jostling to be part of the scheme, which academics yesterday predicted could cost as much as £18 billion, triple Home Office estimates.

The meetings between IT companies and the Government have taken place at Intellect, the UK’s biggest IT, telecom and electronics trade body. Intellect confirmed that Home Office officials were present at seminar and conference sessions on the matter.

Nick Kalisperas, director of public sector at Intellect, said: “This is not about influence. It is about constructive dialogue between customers and suppliers and about what can be realistically developed within the given timescale. We firmly believe the key to a successful project is early dialogue between customer and suppliers.”

Another session next month will include EDS, which was also responsible for the breakdown of the Inland Revenue’s tax credit system, and Fujitsu.

Siemens, the Munich-based electronics firm, has sponsored a debate on the subject held by the Institute for Public Policy Research, the left-leaning think-tank. A Siemens spokesman said: “Obviously we will be looking closely at the scope of the scheme and we do have expertise in biometrics and secure ID card systems in other European countries.”

Drafts of a new study by academics at the London School of Economics, leaked yesterday, gave warning that Britons would each have to pay up to £300 a card, if the scheme remains self- financing as the Treasury insists. They believe the final cost could be £14 billion-£18 billion, rather than the £5.8 billion forecast — or £93 a person — in a Home Office report released last week.

The drafts identify several areas where the Government might have underestimated the true cost of the project, including:

• The Government estimates that each card scanner would cost £250-£750 but academics think the figure is likely to be £3,000-£4,000 a unit;
• The Government believes each card will have a ten-year lifespan but studies suggest that biometric data becomes less accurate over time. People might need to be rescanned every five years;
• The LSE claims that the Government appears not to have factored in the “substantial” administrative costs of handling people who do not co-operate; and
• “If human management is necessary to ensure changes are verified, this would add £1 billion-£4 billion to the ten-year roll-out of the scheme,” the draft says.

  But the LSE report noted: “The ongoing dispute over costs is due in large part to the fact that the Government is either not certain exactly what the ID infrastructure will entail, or is unwilling to disclose these details.”

  The Home Office said that it could not comment on the LSE’s findings because of the confidential nature of the commercial contracts involved.

  The revelations will put more pressure on the Government, which has a reduced majority of 67 and is facing a backbench revolt. There were 22 Labour rebels at the last Commons vote and if 34 were to vote against, the Government’s majority would be wiped out.

  The Conservatives have also renewed their opposition because the post-election Bill contains only minor changes.