Original URL: http://www.channelregister.co.uk/2006/04/11/hci_end_spells_doom/
End of HCI sends first dealer to the wall
Brown's budget claims first victim
Posted in IT Channel, 11th April 2006 09:28 GMT
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Gordon Brown's Budget decision to end the Home Computing Initiative has claimed its first victim - RedPC is going into liquidation.
RedPC - its strapline was "Tax free home computing" - described the Chancellor's decision as "a devasting blow". The London-based company was formed in 2002 and its directors wrote the guidelines for the DTI which led to the tax break being set up. Managing director Martin Prescott said: "We are presently considering our options." He apologised for any inconvenience. More here. [1]
Nitin Joshi, a partner at Vantis representing the company's creditors, told CRN: "There are at least another 15 companies involved in HCI that are at risk. I am in discussions with two other companies that will soon go bust because of the HCI fiasco." More from CRN here. [2]
Joshi said creditors were furious and considering legal action.
But some dealers say RedPC could have acted too soon because Brown is still considering a replacement for HCI. The CBI has been asked to propose a replacement scheme which would better target resources at the poor.
Carolyn Worth from Evesham Micro said the company was waiting to hear something concrete from a government department on plans for a replacement scheme.®