E-minister Hewitt stands by Oftel

Hewitt blamed the slow process of local loop unbundling on strategic errors by the last government and Edmond's predecessor, Don Cruickshank. "The policy of the last administration was to pursue infrastructure competition through the cable network. We changed that policy," she said.

"I have full confidence in the abilities of the director general and we have re-appointed David Edmonds," she added.

The minister also suggested that the UK has a far more difficult job in unbundling the local loop than its European competitors as it has more licensed telecommunications operators than any other country. This was partly responsible for the breakdown in the unbundling process in September, she said.

"I was very concerned that the entire process was going to fall apart and many operators were conducting a war of words through the media. Oftel and the Government had to step in to ensure that the process remained on track.

"Also, BT had not fully grasped the implications of the European timetable which meant the process would have to be brought forward by six months and the framework would have to firmly established by 1 January. I am satisfied that the timetable BT is pursuing is more aggressive," added Hewitt.

Hewitt also said that central government had spent around £12m delivering services online this year. That figure is expected to rise to £23m in 2001.

Hewitt said: "We have a strategy that we have set across government. To ensure that this strategy is a success, we have to promote the right global environment."

The Minister also gave assurances to MPs that she is making headway in filling the E-envoy post, which became vacant in September following Alex Allan's resignation.

"Our headhunters are currently selecting and shortlisting candidates and we expect to make an appointment in January. The role of the envoy will focus less on promotion and more on co-ordinating the online efforts of various government departments," added Hewitt.

By Kris Sangani