DTI passes the Pathway parcel

Fresh doubts have been cast over the future of ICL's #1 billion Pathway project - this time by trade and industry secretary Peter Mandelson, writes Peter Walker.

Grilled on how government plans for greater commercial freedom for the Post Office would impact on the delayed Pathway project to computerise benefit payments, Mandelson was less than reassuring.

'I hope that it will be able to catch up, and that it will be brought to a proper conclusion and completion in due course,' he said.

Speaking after Monday's announcement, Mandelson also expressed concern over two years of delays to the project.

A protracted Treasury review of Pathway is under way, prompting speculation that the government may try to pass responsibility for the troubled Pathway project to the Post Office.

However, a spokeswomen for ICL's Pathway subsidiary said the project is still pressing ahead. 'Our system will support the Post Office delivering their business objectives,' she said.

The DTI insisted that the government would have an influence over key projects such as Pathway.