Tuesday, June 4, 2019

Horizon trial day 14: transcript

This is the transcript of Day 14 of the Horizon trial, the second trial in the Bates and others v Post Office group litigation, held at the High Court's Rolls Building on Tuesday 4 June 2019.

Jason Coyne, independent IT expert for the claimants spent the day being cross-examined by the Post Office's QC, Anthony de Garr Robinson.

My write-up of the day is here.

Mr Coyne's reports can be found here.

Transcript follows:

                                           Tuesday, 4 June 2019
   (10.30 am)
   MR DE GARR ROBINSON:  May it please your Lordship, can
       I start by thanking you for kindly agreeing to adjourn
       this hearing on Wednesday of next week to suit my
       personal circumstances.
   MR JUSTICE FRASER:  Not at all.
   MR DE GARR ROBINSON:  I would also like to thank my learned
       friend who I know has difficulties the following week as
       a result.  I would like that to be put on record because
       I'm most grateful.
   MR JUSTICE FRASER:  Can I therefore check.  We are sitting
       four days this week, which is all going to be the
       claimants' expert being cross-examined by you, and then
       we are sitting the three days next week identified in
       the email of yesterday?
   MR DE GARR ROBINSON:  My Lord, I believe so, yes.
   MR JUSTICE FRASER:  And that is Dr Worden being
       cross-examined by Mr Green.
   MR DE GARR ROBINSON:  Yes.
   MR JUSTICE FRASER:  The dates, times etc for closings etc
       remain unaffected?
   MR DE GARR ROBINSON:  Yes.
   MR JUSTICE FRASER:  Thank you.
   MR DE GARR ROBINSON:  My Lord, one other matter I should
       mention.  Dr Worden's supplemental statement, there has
       been no substantive engagement between the experts on
       that statement, as I understand it.
   MR JUSTICE FRASER:  Which statement?
   MR DE GARR ROBINSON:  I should say his report.  The report
       that was sent to your Lordship a couple of weeks ago if
       your Lordship recalls.
   MR JUSTICE FRASER:  But you are not making an application?
   MR DE GARR ROBINSON:  I have no application to make and
       I was going to tell your Lordship that.
   MR JUSTICE FRASER:  Well, that's one of the points which --
       I know you suggested there was nothing unconventional
       about what Dr Worden had done but his covering email
       explained what application you would or would not be
       making.  I don't know if you have seen that covering
       email, it is the one that was forwarded on by the court.
   MR DE GARR ROBINSON:  I am sure I have seen it, my Lord, but
       not recently.
   MR JUSTICE FRASER:  All right.  But the situation is you are
       not making an application?
   MR DE GARR ROBINSON:  I have no application to make.
   MR JUSTICE FRASER:  Understood.  Is there anything else that
       you would like to mention?
   MR DE GARR ROBINSON:  My Lord, no.
   MR JUSTICE FRASER:  There is something I have to mention, it
       has probably been somewhat lost in the mists of time
       given the circumstances of March, but you were in the
       middle of doing a privilege redaction review.
   MR DE GARR ROBINSON:  Yes.
   MR JUSTICE FRASER:  Has that now been completed?
   MR DE GARR ROBINSON:  My Lord, yes.  There were documents
       were sent over to Freeths a number of weeks ago now in
       accordance with your Lordship's deadline.
   MR JUSTICE FRASER:  I wonder if at some point, not now, you
       could just give me a summary -- I think there were 30
       documents you were looking at?
   MR DE GARR ROBINSON:  I certainly will, my Lord.
   MR JUSTICE FRASER:  If you could just give me a summary of
       the number of documents there were, which went into
       which category and which were disclosed, I would be very
       grateful.
   MR DE GARR ROBINSON:  I will have to go back and review --
   MR JUSTICE FRASER:  I expected you would so I was not
       expecting an answer.
   MR DE GARR ROBINSON:  Would your Lordship like that done
       this week?  Perhaps we could do it on Friday after --
   MR JUSTICE FRASER:  It doesn't have to be this week.
   MR DE GARR ROBINSON:  I'm grateful.
   MR JUSTICE FRASER:  The best thing actually, why not if it
       could just be distilled into writing and then maybe send
       an email on Monday.
   MR DE GARR ROBINSON:  My Lord, yes, that will be done.
   MR JUSTICE FRASER:  Then the other thing, which is for both
       the parties, not just you.  I'm producing judgment
       number 5, which is the written reasons for all of the
       rulings last week.  It is substantially finished.  It
       resolves the outstanding point on the order about
       detailed assessment.  I'm hoping to send it out by the
       end of today, depending on how long it takes me finally
       to proof read it.  If it is not at the end of today it
       will be first thing tomorrow morning, and then based on
       what that says I will just expect the order to be
       produced in due course.
           I do not think there's any other housekeeping,
       unless you have got some, Mr Green?
   MR GREEN:  My Lord, no.
   MR JUSTICE FRASER:  Thank you very much,
       Mr de Garr Robinson.
   MR DE GARR ROBINSON:  My Lord, there is one minor change to
       the agreed reports between the experts.
   MR JUSTICE FRASER:  The joint statements?
   MR GREEN:  The joint statements.  It is at {D1/5/10}.
   MR JUSTICE FRASER:  Which joint statement is this?
   MR GREEN:  This is the fourth joint statement of
       4th March 2019.
   MR JUSTICE FRASER:  Yes.
   MR GREEN:  In the light of considering some further
       documents the experts have agreed that at 11.1, where it
       says "evidence from several PEAKs indicates that
       whenever Fujitsu", it should be "usually", qualifying
       that.  And we will produce for your Lordship a revised
       statement of that sentence that the experts are happy
       with that makes --
   MR JUSTICE FRASER:  They have both agreed that, though?
   MR GREEN:  They have agreed that orally this morning, so
       that's why we don't have a written updated version, but
       we will produce a written version reflecting that
       agreement as soon as we can.
           My Lord, may I now call Mr Coyne.
   MR JUSTICE FRASER:  Yes.
                   MR JASON PETER COYNE (sworn)
                 Examination-in-chief by MR GREEN
   MR JUSTICE FRASER:  Have a seat, Mr Coyne, if you would.
   MR GREEN:  My Lord, there are hard copies of Mr Coyne's
       statement arriving shortly.  He is without them at the
       moment, for which we apologise, but they will be here
       shortly.  He says he is content to proceed with them on
       the screen.
           Mr Coyne, you have made two reports?
   A.  Yes, that is correct.
   Q.  The first appears to be at {D2/1/1}.
   A.  Yes.
   Q.  If we go to page {D2/1/167} of that report, is that your
       signature?
   A.  Yes it is.
   Q.  And do you believe the contents of that statement to be
       true?
   A.  Yes, I do.
   Q.  Then you served a revised version of your supplemental
       report?
   A.  Yes, I did.
   Q.  And if we look at {D2/4.1/1}.
   A.  Yes.
   Q.  If we go please to page {D2/4.1/266} of that report, is
       that your signature?
   A.  It is indeed.
   Q.  Does that reflect the corrections that you made on
       6th March?
   A.  Yes.
   Q.  Subject to those corrections now included in that
       revised report, do you believe the contents to be true?
   A.  I do.
   Q.  There are also four joint reports.
   MR JUSTICE FRASER:  Joint statements.
   MR GREEN:  Joint statements which are at {D1/1/1}.
   A.  Yes.
   Q.  And {D1/2/1}.
   A.  Yes.
   Q.  {D1/4/1}.
   A.  Yes.
   Q.  And {D1/5/1}.
   A.  Yes, that is correct.
   Q.  Could we just look, please, at {D1/5/10}, at 11.1.
   A.  Yes.
   Q.  You will have heard the qualification.  Is that
       something that you have spoken to Dr Worden about?
   A.  Yes, I have spoken to him this morning just before the
       start of court.
   Q.  And what have you agreed about that?
   A.  We have agreed that the word "whenever" overstates the
       position and it would be better to say "usually".
   Q.  I'm very grateful.  Subject to that, is there anything
       in those reports that you would wish to change or depart
       from?
   A.  No.
   MR GREEN:  I'm most grateful.  My Lord, I have no further
       questions.
   MR JUSTICE FRASER:  Mr de Garr Robinson.
             Cross-examination by MR DE GARR ROBINSON
   MR DE GARR ROBINSON:  Mr Coyne, if I could ask you first of
       all to go to bundle {C1/1/1}.  This is a list of the
       Horizon Issues.
   A.  Yes, I have that.
   Q.  And the first set of issues are headed "Bugs, errors and
       defects in Horizon", for shorthand I will call them
       bugs.
   A.  Yes.
   Q.  I would like to look at four issues in particular.
       Issue 1:
           "To what extent was it possible or likely for bugs
       ..."
           Of the nature alleged at certain paragraphs of the
       generic particulars of claim and referred to in certain
       paragraphs of the generic defence.
           "... to have the potential to cause apparent or
       alleged discrepancies or shortfalls relating to
       subpostmaster's branch accounts or transactions, or ...
       to undermine the reliability of Horizon accurately to
       process and to record transactions as alleged ..."
           In certain paragraphs of the generic particulars of
       claim.  You see the references there to the generic
       pleading?
   A.  Yes.
   Q.  I take it you read the relevant paragraphs of those
       pleadings?
   A.  Yes.
   Q.  Issue 3, if we could just read that:
           "To what extent and in what respects is the Horizon
       System 'robust' and extremely unlikely to be the cause
       of shortfalls in branches."
           At the bottom there's more references to paragraphs
       of the generic pleadings.  You have read those as well,
       haven't you?
   A.  Yes, I have.
   Q.  In order to clarify what these issues actually mean?
   A.  In order to provide the context of the questions.
   Q.  I'm grateful.  Then paragraph (4):
           "To what extent has there been potential for errors
       in data recorded within Horizon to arise in (a) data
       entry, (b) transfer or (c) processing of data in
       Horizon?"
           Then over the page at {C1/1/2} at issue (6):
           "To what extent did measures and/or controls that
       existed in Horizon prevent, detect, identify, report or
       reduce to an extremely low level the risk of ..."
           Those specified errors.
           I am sure you will agree the issues I have just read
       out are very important issues for the purposes of these
       proceedings?
   A.  Yes.
   Q.  Would you agree they are probably the most important
       issues for the purposes of these proceedings?
   A.  I'm not sure whether they are the most important but
       they certainly are --
   Q.  They are of central importance, yes?
   A.  Yes.
   Q.  I would like to look briefly at the context that you had
       regard to when interpreting them.  Could I ask you now
       to go to the pleadings bundle which is at bundle
       {C3/1/1}.  These are the generic particulars of claim
       and I'm going to go to a few paragraphs.  First of all,
       page {C3/1/8} of that document and paragraphs 22 to 24.
           22:
           "Prior to disclosure and expert evidence, the
       Claimants are unable to provide detailed particulars of
       bugs, errors or defects which were or may have been the
       cause of any discrepancies or alleged shortfalls
       attributed to them by the Defendant, but will be able to
       plead further thereto following disclosure or the
       provision of information relating thereto by the
       Defendant."
           Skipping over the last sentence.
           Then 23:
           "However, the Claimants aver that there were a large
       number of software coding errors, bugs or defects which
       required fixes to be developed and implemented.  There
       were also data or data packet errors.  There was a
       frequent need for Fujitsu to rebuild branch transaction
       data from backups, giving rise to the further risk of
       error being introduced into the branch transaction
       records."
           Then there is a reference to the known error log.
   A.  Yes.
   Q.  Then various specific things are relied upon in
       paragraph 24 which I would ask you to just cast your eye
       down so you can see what's being alleged.
   A.  Mm.  Yes.
   Q.  {C3/1/9}.
           So the context in which these issues arise is the
       overall question as to whether the problems which are
       alleged here affected the claimants, created false
       shortfalls in their accounts, would you agree with that?
   A.  Yes.
   Q.  If we can then move on to the generic defence and that's
       at bundle {C3/3/1}, behind divider 3.
           If we can go to page {C3/3/21}.  Picking it up at
       paragraph 50, just in the individual subparagraphs, this
       is what the defendants are saying in response to that
       case.  (1):
           "All IT systems experience software coding errors or
       bugs which require fixes to be developed and
       implemented.  As is noted in paragraph 53 and 54 below,
       there are robust measures in place in Horizon for their
       detection, correction and remediation."
   MR JUSTICE FRASER:  I think we jumped forward a bit quickly.
       Can we go back a page, please.
   MR DE GARR ROBINSON:  It's paragraph 50.
   MR JUSTICE FRASER:  Yes, you were reading from 50 and
       page 21 was on the screen, but before you finished
       reading we jumped to page 22.
   MR DE GARR ROBINSON:  I see.  I'm grateful, my Lord.  I'm
       sorry, I was not looking.
   MR JUSTICE FRASER:  That's understood, don't worry.
   MR DE GARR ROBINSON:  Then it says at (2):
           "All IT systems involving the transmission of data
       over the internet experience data or data packet errors
       during transmission and such systems routinely have
       protective measures in place to prevent such errors
       creating any difference between the data transmitted and
       the data received and retained by the recipient.
       Horizon has robust controls making it extremely unlikely
       that transaction data input in a branch would be
       corrupted when being transferred to, and stored in, Post
       Office's data centre in a manner that would not be
       detected and remedied."
           So you will see that here Post Office are not saying
       it didn't happen, but what they are saying is there is
       a risk of it happening but for each occasion on which
       data is input it is extremely unlikely that the data
       would be corrupted.  Do you see that?
   A.  I do see that.
   Q.  If we could move on to page {C3/3/22} now, picking it up
       at paragraph 53, it is said:
           " ... it is a truism that errors or bugs in an IT
       system and data or data packet errors have the potential
       to create errors in the data held in that system.
       However Horizon has at all material times included
       technical control measures to reduce to an extremely low
       level the risk of an error in the transmission,
       replication and storage of the transaction record data.
           Then there is a list of the current measures.
       Again, not saying that it didn't happen.  There is
       a risk but in any given case that risk is extremely low,
       do you see that?
   A.  I can see the words that are being said, yes.
   Q.  So robustness -- we can move on to paragraph 54 on page
       {C3/3/23}:
           " ... in addition to the technical controls referred
       to above, there are several operational procedures and
       practices conducted by Post Office and subpostmasters
       that serve to increase the reliability of the data
       stored in the central data centre as an accurate record
       of the transactions entered on branch terminals.
           Then there is a list of those.  So you will see that
       what's being said is that the robustness of the system
       is said to be affected both by technical measures and by
       human measures.  Do you see that?
   A.  Yes, I can see that.  That is what is said, yes.
   Q.  Then over the page at {C3/3/24} and paragraph 55:
           " ... Post Office admits that, like all other IT
       systems, Horizon is not a perfect system which has never
       had any errors or bugs. However, as indicated in
       paragraphs 53 and 54 above, it has robust systems in
       place to identify them, fix them and correct their
       consequences (if any)."
           Were those the paragraphs that you looked at when
       you were deciding how to interpret the issues that we
       have read to each other?
   A.  Yes.
   Q.  Before you decided on the approach that you would adopt,
       you reflected on the issues thrown up by those
       paragraphs, yes?
   A.  Yes.
   Q.  They made it clear, didn't they, that the critical issue
       was not whether it is possible or likely for bugs to
       have the potential to cause false shortfalls in branch
       accounts over the life of Horizon, that was in fact
       admitted.  The critical issues were the extent to which
       it was and is likely that bugs cause false shortfalls in
       any given set of accounts.  Do you accept that?
   A.  I don't really see the difference between the two
       statements that were made there.  The question was
       whether it was possible or likely and the extent to
       which it was possible or likely.
   Q.  Well, let's -- given that it is admitted that there have
       been occasions where these things have happened in the
       life of Horizon, to ask is it possible or likely that it
       has happened within the life of Horizon is a rather
       uninteresting question, isn't it?
   A.  But along with the statement that defects were
       acknowledged was a statement that there has only been
       three defects.
   Q.  No, Mr Coyne.  I ask you to address my question, please.
       If you could focus on what I asked you.
           Given it was admitted that there have been occasions
       when these things have happened, to answer the question:
       is it possible or likely that these things have happened
       by saying "yes" isn't a very helpful answer, is it?
   A.  If the answer was just simply "yes" and with no further
       context then I agree that that would ...
   Q.  The critical issue that's raised by the four issues that
       I have read to you is the word "extent" and the word
       "likelihood" and the word "risk", isn't it?
   A.  They certainly are critical elements that would need to
       be reviewed, yes.
   Q.  What you were being asked to do by those issues is to
       give your opinion to the court on the extent to which it
       was and is likely that bugs caused shortfalls in any
       particular set of accounts?
   A.  Well, across the accounts of subpostmasters, yes.
   Q.  The extent to which various measures in place reduce
       the risk faced by any given subpostmaster when doing
       a transaction or when producing a particular set of
       accounts, yes?
   A.  Yes.
   Q.  That's the critical question on which the court needs
       your assistance, would you agree?
   A.  It is one of the critical questions, yes.
   Q.  Could you identify a question which you say is more
       critical than that in the context of these proceedings?
   A.  I haven't taken a view on -- I have taken each of the
       Horizon Issues that's put to me with equal priority.
       I haven't set out to decide a prioritisation for them.
   Q.  Very well, I understand.  But you will then at least
       agree with me this far: that in asking you to give your
       opinion on the issues we have read, what you're being
       asked to do is to advise the court on the extent to
       which problems had happened -- or problems were likely
       to happen in relation to any given situation, the extent
       to which those problems were likely to have been caught
       by countermeasures in that situation, and the overall
       question of the extent to which Horizon is robust and
       extremely likely to be the cause of a shortfall in that
       given situation.  Would you agree with that?
   A.  I don't believe countermeasures were asked in the
       questions, but broadly with what you say, yes --
   Q.  When I say countermeasures, you can take me as saying
       controls and measures if you want --
   A.  Okay.
   Q.  Subject to that correction, you would agree that that
       was the essential question being raised in the four
       issues that I read to you?
   A.  I believe they were the questions that were asked and
       I believe that in providing my reports I seek to address
       those.  I have answered those.
   Q.  Very good.  So you accept these issues are of practical
       importance to this trial?
   A.  Yes.
   Q.  So that the court's judgment in this case, when the time
       comes later on to try claims by particular claimants,
       that the accounting shortfalls which he or she is
       complaining about was actually caused by Horizon?
   A.  Sorry, could you put that question again, please.
   Q.  I may have made a grammatical mistake in my question.
   MR JUSTICE FRASER:  I'm not really sure that's a question
       for the expert anyway.
   MR DE GARR ROBINSON:  Very good.  But important questions
       are: when a claimant did a transaction in the period
       covered by a particular set of accounts containing
       a disputed shortfall, what risk did he face of Horizon
       creating errors in the recording, transmission or
       storage of records of those transactions, and how likely
       was it that Horizon calls a false shortfall in those
       accounts?  Would you agree that those questions, the
       Horizon Issues I have read to you, the resolution of
       those issues will be of assistance in deciding that
       question?
   A.  No, I don't believe that that's something that we have
       been asked to calculate or assess.
   Q.  No, I'm not asking you, Mr Coyne -- I'm not suggesting
       to you that you have been asked to decide on whether any
       particular claimants' claim is right or not, what I'm
       suggesting to you is that the context in which these --
       given the context in which these issues arose -- were
       drafted, and given the pleadings by reference to which
       they were drafted, it was obvious that the purpose of
       those issues was to assist the court so that it could
       use the judgment that will be produced in this trial as
       a basis for making ultimate decisions in ultimate breach
       claims by claimants?
   A.  In a later trial?
   Q.  Yes.
   A.  Yes, I was aware of that.
   Q.  Isn't that the main reason why we are here?
   A.  Well, it is certainly a reason why we are here, yes.
   Q.  To enable the court to make useful findings as to the
       general likelihood of any transaction being wrongly
       recorded in a particular case?
   A.  Yes.
   Q.  And as to the general likelihood of any particular set
       of accounts containing false shortfalls because of
       Horizon?
   A.  I don't believe either of those two statements appeared
       in the issues for the technical experts, did they?
   Q.  So you don't believe that when you were asked in the
       Horizon Issues -- let me see if I can find them -- at
       {C1/1/1}:
           "To what extent was it possible or likely for bugs
       [and so on] to have the potential to cause apparent or
       alleged discrepancies or shortfalls?"
   A.  Yes.
   Q.  You don't think you were being asked to give an opinion
       as to the extent of the likelihood of that happening in
       any given case?
   A.  Yes, but I have not placed any focus on any particular
       branch accounts for any subpostmasters or claimants.
   Q.  But you weren't focused on the entire life of Horizon.
       There are two ways that one could construe the question
       "To what extent was it possible or likely for bugs" and
       so on.  One is was it possible or likely for bugs to
       have done that thing at any time during the life of
       Horizon?  And I think we have already agreed that the
       answer to that is trivial because we know it already.
   A.  Sorry, I do not think I agree with that.  I think
       because we are talking of situations, bugs, errors and
       defects that occurred throughout the life of Horizon,
       you do have to look at the entire life cycle from when
       it was first used by subpostmasters all the way up to
       the near current date.
   Q.  I'm not suggesting that you don't have to look at
       whether bugs have arisen during the life of Horizon.
       What I'm suggesting to you is the practical purpose of
       these issues, the question you are being asked, is to
       what extent is it likely that those bugs are going to
       cause shortfalls in any given case?
   A.  Yes, I agree with that.
   Q.  Thank you.  So the focus was not just on the number of
       bugs in Horizon, the focus was on bugs which were likely
       to affect branch accounts, yes?
   A.  Yes.
   Q.  And also on whether there were -- I'm going to call them
       countermeasures, I hope that's not controversial, which
       were likely to catch and correct their impact, yes?
   A.  Yes.
   Q.  Either straightaway or after some time?
   A.  Typically if you were going to design a countermeasure
       you would want to have it finding the defect
       straightaway.  If it was only going to find it some time
       later it would be of limited value.
   MR JUSTICE FRASER:  Mr de Garr Robinson, just on your term
       "countermeasures".
   MR DE GARR ROBINSON:  Yes.
   MR JUSTICE FRASER:  I understood that to have a specific
       meaning within the IT world.  Are you using it in
       a technical meaning or are you using it as a generic
       term?
   MR DE GARR ROBINSON:  I'm using it as a term to refer to
       measures and controls in existence, both technical and
       human measures and controls, which are designed or have
       the effect of identifying bugs in Horizon or identifying
       the consequences of bugs in Horizon so that they can be
       looked at and fixed.
   MR JUSTICE FRASER:  So that's the way counsel is going to
       use the term "countermeasures".
   A.  Thank you, my Lord.
   MR DE GARR ROBINSON:  And this trial, the issues that we
       have been discussing, are designed to enable the experts
       to grapple with that question, yes?  Whether
       countermeasures are likely to catch and correct the
       impact of any bugs that may have arisen in the system?
   A.  Agreed.
   Q.  And countermeasures aren't limited to a process of
       stopping the bug as soon as it appears.  Sometimes
       countermeasures only catch the symptoms or the
       consequences of a bug, you would accept that, wouldn't
       you?
   A.  Typically countermeasures are a design aspiration.  When
       you sit down to design a computer system and what
       controls are in place, then you would consider what
       controls are required, where to position them.  Should
       it be the case that the controls fail do you have
       a human aspect doing a secondary check?  It could go all
       the way to employing auditors to re-check figures.  You
       could go on ad infinitum with --
   Q.  So you accept, then, that these controls or
       countermeasures, whatever you would like to call them,
       some of them have the effect of stopping the bug in its
       track.  Well, some of them have the effect of stopping a
       bug arising in the first place?
   A.  The best way of dealing with defects is to ensure that
       they don't arise in the first place --
   Q.  And --
   A.  Sorry, if you would allow me to just finish.
   Q.  Sorry.
   A.  So what you would do is throughout your testing regimes
       you would flush out all of the defects at that point in
       time, and you would put in controls to ensure that if
       a defect does trigger, there is a way that you are
       alerted to it and it is fixed as soon as possible.
   Q.  Yes.  So one of the objectives is to have a testing
       regime which picks up as many bugs as possible?
   A.  Indeed.
   Q.  But I think you accept that it is impossible to have
       a testing regime that picks up all of them?
   A.  It is impossible to have a testing regime that picks up
       all of them and that is why you have a process of
       categorisation and you would allow a product to go live
       if -- one of the terms that's used -- all severity 1 and
       severity 2 defects have been dealt with.  Severity 3
       might be largely cosmetic and you would allow a system
       to go live with cosmetic defects.
   Q.  That's not quite what I'm asking you.  You accept there
       are going to be bugs which arise in the operation of any
       IT system which would simply evade any test that any
       human being can devise?
   A.  There's always going to be bugs that are unknown to be
       within the system at the point that you go live and they
       are only discovered sometimes weeks afterwards,
       sometimes years afterwards.
   Q.  Yes.  And then -- so that's one line of defence.  Then
       there are other lines of defence when a bug does arise
       because it hasn't been tested for.  There are principles
       such as defensive programming, and so on, which try and
       stop the bug working its way through the system and
       producing false results at the end?
   A.  Defensive programming is typically to stop the bug ever
       occurring.  It isn't the trigger mechanism; what happens
       after the bug is triggered.
   Q.  Isn't one of the aspects of defensive programming having
       little units of programmes which require data to be
       transferred from one programme to another programme to
       another programme, and every time you transfer from one
       unit to the other checks are done to ensure the figures
       are correct?
   A.  Yes, to ensure that a bug doesn't have an impact on the
       user --
   Q.  So one aspect of defensive programming is not just to
       prevent bugs, it is to ensure the bug doesn't
       propagate --
   A.  Yes.
   Q.  -- when it manifests itself and produces an error in
       data, yes?
   A.  Yes.
   Q.  So we have one set of measures which is designed to
       prevent bugs occurring in the first place?
   A.  Mm.
   Q.  We have other measures which are designed to prevent
       bugs causing problems in data at the user end, if I can
       put it that way.  But again no system of countermeasures
       is perfect, there will always be bugs that get through?
   A.  Agreed.  I completely agree.
   Q.  Then you have other measures which are designed to pick
       up the problems which have been caused at the user end.
       You have measures that are designed to assist in the
       identification of the fact that there is a problem in
       data such that it needs to be looked at and corrected if
       it is wrong?
   A.  Yes, that's typically called impact management.  So you
       understand what the impact might be of the bug that you
       have seen and you work out a process of resolving the
       consequential impact of it.
   Q.  That's precisely -- and of course I'm reminded that many
       of those countermeasures also pick up and correct for
       user errors as well.  They can sometimes have a dual
       effect?
   A.  Yes, you can design the software in such a way that it
       reduces the amount of user errors or the potential user
       errors.  One such that's appeared in this case is about
       double typing high value cheques when they are remmed
       into the system.  So if it is a high value, potentially
       you should type that in twice rather than in once.
   Q.  All of these things that we have just been discussing in
       general terms is precisely what the concept of
       robustness addresses, isn't it, in the IT industry?
   A.  Yes.
   Q.  That a system isn't merely reliable when conditions are
       normal -- I think the technical term is nominal -- but
       robust performance takes over if and when conditions are
       abnormal or off nominal, when they become adverse and
       errors are created, yes?
   A.  Yes, you would want a system to fail safely.  So it is
       acknowledged that there could be failures and it is what
       you do when that system fails.
   Q.  So robustness is the very concept which underlies the
       issues we have been discussing for the last half hour,
       yes?
   A.  Yes.
   Q.  I think that's what you agree in the joint statement.
       If we could go to the joint statement, it is at bundle
       {D1/1/8}.  This is paragraph 2.3, issue 3.
           This is what you agreed with Dr Worden before any
       reports were produced at all:
           "There are different dimensions of robustness, such
       as robustness against hardware failure, software defects
       and user error.  The robustness of the system also
       depends on the process around it.
           "Robustness does not mean perfection; but that the
       consequences of imperfection must be managed
       appropriately."
   A.  Yes.
   Q.  Then over the page {D1/1/9} you suggest your own
       interpretation of robustness.  You say:
           " ... I have applied the following definition of
       robustness:
           "'... namely, the ability of a system to perform
       correctly in any scenario, including where invalid
       inputs are introduced, with effective error handling.'"
           So those adverse conditions you refer to, that would
       include bugs in the system itself, wouldn't it?
   A.  Yes.
   Q.  So withstanding them would include managing their
       consequences appropriately, yes?
   A.  Yes.
   Q.  I think that's also what you say in the third joint
       statement that was agreed some time later.  That is at
       {D1/4/2}.  It is the second paragraph:
           "From our experience of ..."
   A.  Sorry, I do not think I have the right --
   Q.  Sorry, it is {D1/4/2}.
   MR JUSTICE FRASER:  If you look at your screen you will see
       what the witness is seeing.
   MR DE GARR ROBINSON:  It is {D1/4/2}.
           At the bottom of the page, do you see that?
   A.  Yes, I do.
   Q.  Second sentence of the second paragraph:
           "We agree that 'robust' does not mean infallible and
       therefore horizon has and will continue to suffer
       faults.  Robustness limits the impact of those faults
       and other adverse events."
   A.  Yes.
   Q.  If you go over the page to page {D1/4/4},
       paragraph 3.13, third box down, third row down:
           "Countermeasures work by limiting the impact of
       Horizon bugs/error and defects on branch accounts.
           "Countermeasures do not always eliminate the effects
       of adverse events (they are not perfect) ..."
           Do you agree with that?
   A.  Yes.
   Q.  No IT system ever has perfect countermeasures?
   A.  I agree.
   Q.  But they are often effective in the area where they are
       deployed and that's why they become basic elements of
       practical IT system design.
           Incidentally, isn't that what Dr Worden was saying
       in the first statement?  If we can go back to the first
       joint statement, which is {D1/1/9}, and look at page 9
       of that statement, you will see in the bottom half of
       the screen we have got Dr Worden's comments?
   A.  Yes.
   Q.  So you indicate your definition of robustness in the
       top, and below he says:
           "The definition of 'robust' proposed above by
       Mr Coyne is not adequate for reasons given below.  The
       term 'robust' is not, as implied in para 3.1 of the
       outline, either ill-defined or a piece of IT public
       relations.  Robustness (which is closely related to
       resilience) is an engineering objective, and large parts
       of project budgets are devoted to achieving it."
           Would you agree with that?
   A.  Yes.
   Q.  "it receives its meaning in the phrase 'robust against
       ... [some risk or threat]' ..."
           Would you agree with that?
   A.  Yes.
   Q.  "... and there are a large number of risks that business
       IT systems need to be robust against - such as hardware
       failures ..."
           If we go over the page {D1/1/10}:
           " ... communications failures, power cuts,
       disasters, user errors or fraud.  These are the
       dimensions of robustness."
           Do you agree with that?
   A.  Yes.
   Q.  "In all these dimensions, robustness does not mean 'be
       perfect'; it means 'address the risks of being
       imperfect'.  The extent of robustness is to be
       interpreted as: in how many dimensions was Horizon
       robust?  And: in each dimension, how large were the
       remaining risks?"
           Would you agree with that?
   A.  That is a little imprecise.  I don't really understand
       the reference to the dimensions.  The dimensions aren't
       defined.
   Q.  He talks about dimensions before, hardware failures --
       he talks about different risks that are faced by the
       system.  But let's not get bogged down in dimensions.
       The critical question, could I suggest to you, in
       robustness, is how large were the remaining risks after
       the relevant countermeasures have been brought into
       account?  Would you agree with that?
   A.  I'm not sure I would agree that that is the critical
       question, no.  Certainly consideration does need to be
       given to how, once a risk triggers, it is dealt with.
   Q.  Let me get this straight.  You are not agreeing that
       when determining whether a system, an IT system, is
       robust that a critical question is how large are
       the risks remaining after you have had regard to the
       countermeasures?
   A.  But when you talk about how large are the risks, that
       quantification is something which I don't believe is
       possible.  It is not possible to quantify risk in such
       a way.
   Q.  So please explain, Mr Coyne, how else would you grapple
       with the question of robustness?  You agree robustness
       is an important concept?
   A.  Yes.
   Q.  You agree it is deployed very frequently in the IT
       industry?
   A.  Yes.
   Q.  It is a subject of academic study, isn't it?
   A.  Yes.
   Q.  And there are university courses on it?
   A.  There may well be, I'm not aware --
   Q.  Yes.  So given that, and given that the essential
       purpose of this doctrine is to determine how well
       systems guard against problems caused by -- it could be
       human error, it could be bugs, it could be any adverse
       conditions of that sort, isn't it obvious, doesn't it
       follow as night follows day, that the ultimate question
       being wrestled with by the concept of robustness is how
       well are the risks faced by a system guarded against?
       In other words, what are the risks remaining after you
       have taken the countermeasures into account?
   A.  Yes, and typically that analysis, what you talk about
       there, is conducted in the design process of a system at
       the start where you would then go to build a system
       after you are satisfied that it has all the design
       characteristics and control measures in place.  So it
       achieves a particular level that you are satisfied with
       and then you go to actually build the solution.  That is
       different to then having a system already in place and
       looking back at it and trying to decide what its level
       of robustness was.
   Q.  Sorry, I'm not sure I understand what you are saying,
       Mr Coyne.  Are you saying it is possible to define
       a level of robustness that you want when you are
       designing the system, but it is not possible to decide
       whether you have achieved that level after you've built
       it?
   A.  What I'm saying is when you set out to build the system
       and you have the design processes and control measures,
       you will take a view whether you are satisfied with the
       level of risk within that build.  It won't have
       a number, it will be subjective, but there will be
       a decision on whether there is the appropriate level of
       robustness -- to use the phrase that we have termed
       here -- and if everybody is agreed at that level of
       robustness the build will then take place.  But it is
       a subjective view.
   Q.  I'm interested in your suggestion, Mr Coyne, that there
       won't be any numbers.  You say you are a qualified
       PRINCE2 practitioner, yes?
   A.  Yes.
   Q.  I have seen a number of PRINCE2 documents and we can
       take you to some tomorrow if this is necessary.  But
       what those documents make very clear is that in engaging
       in the process of determining the risks -- managing the
       risks to a given project, you do absolutely attach
       numbers to particular risks.  You have graphs, don't
       you?  You draw graphs up and you assign values to
       particular risks?
   A.  Typically each risk will have an impact rating, often
       between 0 and 5 but it could be different, and there is
       a likelihood of that impacting, and typically you would
       multiply one by the other and that gives you a number.
       But that is far too simplistic for something at the
       level of analysis that we are talking about here.
   Q.  What I'm suggesting to you, Mr Coyne, is previously you
       said when you are designing a system and considering
       the risk to which you wanted the system to be subject,
       the level of risk which you were willing to accept, it
       is a subjective view and it doesn't involve any numbers.
       What I'm suggesting to you, Mr Coyne, is it absolutely
       does involve numbers and indeed the very process you
       have just described shows it involving numbers.  Would
       you agree with that?
   A.  Right, so what I set out with regard to numbers there
       was a very simplistic way of measuring isolated aspects
       of risk.  That is used in PRINCE2.  But you can't
       necessarily scale up looking at simple isolated risks
       and apply it to something retrospectively such as
       Horizon.
   Q.  You are raising two completely different issues.  The
       first issue is the retrospective issue.
   A.  Right.
   Q.  And the second issue is numbers.
   A.  Right.
   Q.  You accept, don't you, that when designing a system you
       absolutely do -- you identify the risks which you want
       the system to guard against and you assign numbers to
       the adequacy of the risk to which the system is guarding
       against and you perform calculations with a view to
       ascertaining whether the system is the kind of system
       that you want, yes?
   A.  No, not really.  When you are talking about
       countermeasures or controls, they will be functional
       design aspects and there will typically be a list of all
       functional design aspects and nonfunctional design
       aspects.
           The types of risks that are monitored through the
       design and implementation of an IT project are often
       things such as delay, the lack of resources, the failure
       of hardware, and it is those aspects that you would
       attribute a numerical value, and then also a numerical
       value which is likelihood.
           So yes, they are both in the same area as risk, but
       one is dealing with very simplistic isolated elements
       and the other is dealing with the whole operation of
       a system.
   Q.  You have not said that before, so far as I'm aware.  You
       are suggesting that PRINCE2 can only involve simple
       calculations, it doesn't involve quite elaborate
       calculations involving a wide array of risk
       calculations?
   A.  I'm not saying that you can't make PRINCE2 more
       elaborate.  Typically in my experience people will
       measure risk within PRINCE2 between 0 and 5, so it is
       not very granular, but there's nothing to say that you
       couldn't have some more scientific way of doing it.
   Q.  Are you suggesting that doesn't happen in practice,
       because I would like to suggest to you it does, and
       there are quite complex projects where there are quite
       elaborate calculations made.  Would you accept that?
   A.  I am sure there may well be.
   Q.  Just to very briefly talk about your retrospective
       point.  If you are brought in to design a new element to
       a system, around an existing system, and you are being
       asked to calculate the risk of that system not operating
       accurately in collaboration with the legacy system
       that's remaining, when performing that calculation risk
       you will look at the past, won't you?  You will look at
       how the legacy system operates, how reliable the outputs
       are out of the legacy system, all sorts of things which
       are based upon looking back at retrospective events,
       yes?
   A.  Yes, I would certainly look if there has been any
       historic defects within the system, because in the
       example that you are giving it is a system that is
       already live that is being extended.  So I would look
       back at how the good the testing has been in the past,
       whether bugs have escaped the testing.  I would look at
       how many defects there have been in any given launch or
       release.  I would look at how, when bugs are detected,
       they are dealt with, what the mitigation of those would
       be.  There would be an assemblance of all of those
       elements.
   Q.  Thank you.  So what you describe as an assemblance would
       be an examination, a review, of the data relating to
       past performance --
   A.  Yes.
   Q.  -- with a view to ascertaining a risk that you face in
       the future, yes?
   A.  It would certainly help set the context.  It might well
       be that simply looking backwards at a project, whilst it
       might be helpful to set the context, it might well be
       that the way you are going to approach this new project
       is different, it might have different vendors that are
       involved, the supporting mechanism might be completely
       different, which might be a factor in the scenario.  We
       have Atos that were involved in certain aspects of the
       support, we have Fujitsu that were involved in certain
       aspects of the support.  Post Office had a supporting
       function and had a reconciliation function but that may
       well have changed over time.  So it is important to
       understand what processes were in place at various
       times.
   Q.  Yes.  And forming that understanding, can I suggest to
       you that invariably you will be looking at past
       performance?
   A.  Yes.
   Q.  Even, for example, if you are bringing in a new system
       that is designed to be compatible with an old system, as
       well as looking at the data relating to the past
       performance of the old system you would also look at the
       data relating to the past performance of the new system
       if there is some, wouldn't you?
   A.  Yes.
   Q.  So quite often when performing what you describe as
       a prospective risk analysis you would often look at
       historical data and look at historical performance,
       wouldn't you?
   A.  Yes.
   Q.  I'm very grateful.
           If we can now move to bundle {D3/1/11}, this is
       Dr Worden's first report.  If I could pick it up at the
       bottom of the page, paragraph 48.  Dr Worden has just
       listed three of the issues that we have just been
       discussing, and then he says in paragraph 48:
           "In my opinion the most important of these is
       issue 3 which encompasses a large and mature area of
       modern IT practice."
           Do I apprehend from the evidence you have already
       given that in your opinion the most important of these
       issues is not issue 3?
   A.  I don't see any as being more important than others.
   Q.  You would accept, though, that issue 3 encompasses
       a large and mature area of IT practice, yes?
   A.  Yes.
   Q.  Then he says:
           "Nearly all business IT systems need to be robust --
       as the business depends on them -- and there is a large,
       mature and tested set of techniques for achieving
       robustness."
           Do you agree with that?
   A.  Yes.  It is a generic statement of the industry rather
       than this particular project.
   Q.  Then if we could move on to page {D3/1/96} in the same
       document.  Paragraph 374.  He sets out there -- I will
       ask you to read it to yourself -- points that are
       similar to the points that we have seen in the first
       joint statement and he adds at the end:
           "Robustness of IT systems is a large and mature
       topic."
           And I understand you would agree with that?
   A.  Yes.
   Q.  So what this all shows is that there is a well
       understood body of practice and learning on how to
       achieve robustness, yes?
   A.  Say that again, please?
   Q.  There is a well understood body of practice and learning
       on how to achieve robustness in IT systems?
   A.  Yes.
   Q.  And it is possible to benchmark a system by reference to
       other comparable systems which are deployed in the
       industry, yes?
   A.  Yes.
   Q.  You say that I think in your first statement.  Perhaps
       if we could look at that {D2/4.1/154}, page 154,
       paragraph 5.99.
   A.  Yes.
   Q.  I'm so sorry, Mr Coyne, I'm taking you all over the shop
       and I'm wasting time.  I do apologise.  Something seems
       to have gone wrong in my note.  Could you give me one
       moment?
   A.  Certainly.  (Pause)
   Q.  Yes, let's go back to {D2/1/78}.  It is page 78, as
       I indicated first of all, and it is paragraph 5.91.  You
       say -- this is in your first report:
           "... I have estimated the likely level of the
       robustness of Horizon and benchmarked this against
       industry standards based upon a review of the evidence
       available including the known error log (KEL) and PEAK
       system."
   A.  Yes.
   Q.  Your conclusion, having done that benchmarking exercise,
       is that Horizon is robust, isn't it?
   A.  I said relatively robust, yes.
   Q.  Well, let's look at exactly what you say.  It is bundle
       {D1/4/2}, paragraph 3.1:
           "From our experience of other computer systems ..."
           This is at the top of the second paragraph.
   A.  Yes.
   Q.  "... Horizon is relatively robust."
   A.  Yes.
   Q.  So that's your considered view about the Horizon system,
       isn't it?
   A.  Yes.
   Q.  On the basis of all the evidence that you had seen?
   A.  Yes.  In my first report I stated that.  In my second
       report I explained that in light of the evidence that
       had been disclosed between the two reports, that the
       Horizon system wasn't as robust as I initially
       considered.
   Q.  But your overall view after that process is set out in
       the passage we just looked at?
   A.  It is.
   Q.  Your view is Horizon is relatively robust, and I would
       like to explore that if I could.  We agreed that
       robustness is a mature topic which is the subject of
       academic study and has well understood practical
       principles.  Would you agree?
   A.  Yes.
   Q.  You say that from your experience of other systems
       Horizon is relatively robust.  So you are saying that
       you have considered comparable systems of which you have
       experience?
   A.  Yes.
   Q.  These are systems with which you are familiar?
   A.  Indeed, yes.
   Q.  And you have compared Horizon's robustness with the
       robustness of those systems, and compared with those
       systems Horizon is relatively robust, yes?
   A.  Yes.
   Q.  Let me tell you what I think you are saying here and you
       will correct me if I'm wrong.  It has a good level of
       robustness compared with some systems?
   A.  Yes.
   Q.  In the top quartile, maybe?
   A.  That's not the assessment that I believe I have made.
   Q.  Certainly in the top half, would you agree?
   A.  No, I don't think I want to be drawn on where it is
       positioned.
   Q.  If I were to tell you that when I go running I'm
       relatively fast, isn't that what I would be saying, that
       I'm faster than most people I run with?
   A.  Yes.  For context, I have worked on a number of systems
       in banking, in manufacturing, and Horizon compares well
       with those systems, with the context that we have added
       here that it is not free from defects and the impact of
       those defects is very important to consider but it is
       relatively robust --
   Q.  So --
   A.  Sorry, if I could just add to that.
   Q.  Yes, of course.
   A.  What must be considered is that we are talking about
       Horizon as it is today and the processes that are in
       place today, but there has been quite a long journey to
       get to the position that it is now --
   Q.  I'm going to ask you about that later, Mr Coyne, but you
       have made the point and I understand it.
   A.  Okay.
   Q.  If I understand you correctly, you are saying that if
       there is a spectrum of comparable systems in the world
       today from 0 to 10, Horizon is towards the upper end.
       You don't want to commit yourself to whether it is in
       the top 25%, but it is towards the 10 end rather than
       the 0 end?
   A.  Yes, but what you have got to take care -- and
       benchmarking against systems that are in similar
       contexts.  There are of course systems that are dealing
       with flag management, I used to work at
       British Aerospace looking at their military aircraft
       programming.  There was a whole different spectrum of
       robustness that was required there.  I have also worked
       in health care where you are talking about life critical
       systems.  Horizon doesn't compare anywhere near those
       sorts of systems.  What I'm talking about is Horizon
       when benchmarked against systems of similar context, so
       in retail, in banking and things like that.
   Q.  And these are systems where there are large numbers of
       users?
   A.  Yes.
   Q.  And a great complexity in the transactions being
       performed?
   A.  Yes.
   Q.  And these are systems which have measures and controls
       to achieve robustness?
   A.  That aim to achieve robustness, yes.
   Q.  Could you just define which sectors you are talking
       about as being comparable for the purposes of your
       judgment?
   A.  So point of sale systems, something where a transaction
       is taking place over the counter, is certainly
       comparable.  Banking has elements of it, where automated
       payments are being transferred to different
       organisations, so that is certainly comparable as well.
       Stock control, things like that.
   Q.  And you are talking about large businesses with lots of
       users and lots of complexity, yes?
   A.  Yes, at a similar scale to what is seen in Horizon.
   Q.  We have been talking about measures and controls or
       countermeasures.  Dr Worden identified 18 of them in his
       first report, didn't he?
   A.  Mm.
   Q.  You will see that he says he has defined three letter
       acronyms for each of them?
   A.  Yes.
   Q.  And he says specifically, doesn't he, that most of these
       acronyms are not commonly used in the industry?
   A.  I think he did say that, yes.
   Q.  But in your second report you suggest that he might be
       giving the false impression that they are commonly used
       in the industry, do you remember saying that?
   A.  Certainly in my report I point out that they aren't used
       in the industry.
   Q.  Let's see what you actually say.  It is at bundle
       {D2/4.1/141}, paragraph 5.67:
           "Whilst Dr Worden acknowledges these acronyms are
       mostly not used in industry, he has used them throughout
       his report which gives the impression they have a
       standard meaning and scope."
           Do you think that is a fair thing to say?  He
       specifically says in his report that they don't.
   A.  Well, I actually think that if you do attribute acronyms
       to things there is a danger that the perception is that
       they are read as being industry standard terms.
   Q.  Even in circumstances where he specifically says that's
       not the case on at least two occasions in his report?
       I mean why did you feel it necessary to say that,
       Mr Coyne, in circumstances where Dr Worden had already
       made it clear?
   A.  I'm not sure.
   Q.  Anyway, you go through his 18 countermeasures over the
       page {D2/4.1/142}, there is a table that goes on, and it
       is fair to say you disagree whether one of them is
       a standard countermeasure, you disagree that manual
       workarounds count as a standard countermeasure?
   A.  Yes, I don't believe that a manual workaround can be
       a --
   Q.  But for others you accept they are typical standard
       features in IT systems design?
   A.  Yes, certainly when you are designing a system, some of
       the aspirational features that you want to build in
       there would be contained within these controls.
   Q.  Mr Coyne, you have used the word "aspirational" several
       times now and I'm just wondering whether you're trying
       to drum home a theme.  If you want to make a point about
       aspiration I don't want to stop you making it, but you
       do throw this word in quite a lot to your answers and
       I'm wondering what point you're trying to make by the
       word "aspiration"?
   A.  I'm just pointing out that when you start a project and
       you build something, you go through a workshop typically
       of setting out what your design aspirations are.  That
       is just a term I use when I'm conducting workshops with
       people going through things.
   Q.  I see.  Your judgment on the robustness of the Horizon
       system takes all these countermeasures that Dr Worden
       refers to -- with the possible exception of
       workarounds -- into account, doesn't it?
   A.  Yes.
   Q.  It is necessary to do so to form a judgment on
       robustness, isn't it?
   A.  I'm not sure that you need to consider -- I'm not sure
       that you need to decide that this is the subset of
       factors that you are going to consider before you come
       up with a calculation of robustness.
   Q.  Mr Coyne, didn't one of the Horizon Issues specifically
       ask you to consider whether controls and measures in
       Horizon reduced certain problems to an extremely low
       level of risk?
   A.  It certainly -- yes, it did.
   Q.  And I think we have established, it has taken an hour to
       do this, I think we have already established that when
       making an overall judgment of robustness you both
       consider how the system operates and then consider how
       the countermeasures designed into the system also
       operate?
   A.  Yes.
   Q.  With a view to coming to an overall decision as to the
       robustness of the system?
   A.  Yes.
   Q.  Thank you.  So in forming a judgment about robustness it
       is necessary to form a judgment also, isn't it, about
       how the countermeasures, what Dr Worden calls the
       robustness countermeasures, how those countermeasures
       were designed and operated in practice, yes?
   A.  Yes.
   Q.  A key element of robustness is considering how a system
       limits the extent of the impact in this context, in the
       context of the Horizon system, and the issues we are
       considering, namely, does Horizon cause shortfalls in
       branch accounts.  A key element of the robustness
       question is considering how the Horizon system limits
       the extent of any impact on branch accounts, yes?
   A.  Yes.  Certainly you need to establish what the impact is
       and, secondly, you should take steps that if it is ever
       going to happen again you reduce that impact.
   Q.  So in forming a judgment on robustness you have first of
       all to see -- let's take a bug.  A bug happens and the
       first question you ask is: did that bug or could that
       bug have had an impact on branch accounts?
   A.  Yes.
   Q.  Then you form a judgment on whether and to what extent
       the countermeasures in place in the Horizon system would
       have enabled that impact to be identified and fixed,
       yes?
   A.  No, I think you would look at whether it did -- whether
       any countermeasure or control did prevent it from having
       a consequential impact, not whether it should have.
   Q.  Well, whether it would have?
   A.  Or whether it would have.
   Q.  You don't consider whether it would have, you consider
       whether it did?
   A.  Well, if it did there would be evidence that it did.  It
       would be documented.
   Q.  But in some cases it will be blindingly obvious, won't
       it, Mr Coyne?  Let me give you an example, remming.
       A Post Office example.  Remming in and remming out.
       Money is sent from Chesterfield to a branch.
       Chesterfield has a record of the money it sends over.
       The branch receives the money and types in -- or usually
       it is a barcode actually, but it records on the Horizon
       system how much money the branch has received.
           You are aware, aren't you, that there is
       an automatic system that checks Chesterfield's figures
       against the branch's figures?
   A.  Yes.
   Q.  Are you suggesting that every time over the last
       20 years there has been a discrepancy between
       Chesterfield's figures and the branch's figures, are you
       suggesting that it is necessary for you to see the
       evidence of what happened next, of whether a transaction
       correction was sent and what the evidence was in
       relation to that branch?  Are you really suggesting
       that's necessary?
   A.  No, because in a typical scenario where the systems
       operate as they should, as they are designed, then the
       positioning of the countermeasures that you have put in
       place would pick up on that so that would work
       absolutely fine.  In the scenario where the system
       doesn't operate as expected there is a bug, error or
       defect or communication fault, then a different set of
       scenarios will likely be encountered and it is
       understanding then what happens that is important.
   Q.  Let me get this straight.  You are suggesting that there
       are cases when you can take it as read, the situation is
       such that you can take it as read that a problem will be
       identified and it will be fixed.  But you are suggesting
       there are other situations where you can't take it as
       read where specific evidence is needed, is that right?
   A.  Yes.
   Q.  Okay.  But nonetheless, although you say that is
       necessary, it is your considered opinion that the
       Horizon system that you now see is robust, yes?
   A.  Relatively robust, yes.
   Q.  Thank you.
           If I could look at the third joint statement again
       which is at -- let's go to your first report, actually,
       which is {D2/1/26}.  At paragraph 3.7 you say:
           " ... whilst the present-day version of Horizon,
       supported by manual human support may now be considered
       as relatively robust in the spectrum of computer systems
       used in businesses today it has undergone major
       modifications ..."
           And in forming that judgment, if I can go down to
       paragraph 3.9, you say:
           "Fundamental in determining the robustness of
       Horizon is gaining an understanding of the Post Office
       (and Fujitsu) manual business processes applied when
       determining and handling the effects of bugs ..."
           So may I take it that the judgment that you record
       in paragraph 3.7 is based upon an understanding that you
       have gained of the processes you describe in
       paragraph 3.9?
   A.  Well, one of the challenges is that we do have
       an understanding of business processes for many parts of
       the Horizon support system, we don't have it for all,
       and one of the key elements is when it comes to
       reconciliation, so the recovery of a situation that
       occurs when a bug, error or defect has had an impact on
       branch accounts, there is a need for reconciliation and
       we don't have that part.  So the closed loop, we are
       unable to close that loop.
   Q.  I'm finding it difficult to understand what you are
       saying.  Are you saying that you are in a position to
       make a judgment that Horizon is robust or are you saying
       that you aren't?
   A.  I'm saying that based on the information that's
       available it is relatively robust.
   Q.  Thank you.
   A.  What I'm also saying is subject to other documentation
       or other parts of the process that has not been
       disclosed at this stage, the situation may improve or it
       may well be a worse situation.
   Q.  Mr Coyne, if I can suggest to you that makes no sense
       whatsoever.  You have made a judgment.  You have already
       confirmed I think more than once --
   A.  Yes.
   Q.  -- that it is your considered opinion that the Horizon
       system as it exists at the moment, with all its
       countermeasures, is robust?
   A.  Yes.
   Q.  In those circumstances you can't be suggesting, can you,
       that there's evidence out that there that you haven't
       seen that may mean that that judgment is completely
       wrong?
   A.  I don't see why that can't be the position.  There may
       well be documentation and there is documentation that
       must exist with regard to reconciliation within
       subpostmasters' accounts after a bug, error or defect
       has occurred and outstanding the outcome of that will
       have an impact on the statement of robustness.
   Q.  Mr Coyne, when you talk about reconciliation you are
       talking about the reconciliation that occurs between
       transactions as transferred from the Horizon system into
       Post Office systems and those transactions then being
       compared with the transactions that are recorded by
       banks, financial institutions and other Post Office
       clients, is that what you are talking about?
   A.  No, sorry, specifically what I'm talking about here is
       when a bug, error or defect occurs, as we have seen
       here, there is the identification of a discrepancy on
       a postmaster's account, and that's in the evidence.
       What we then don't see is how, if at all, that was dealt
       with.
   Q.  Just to be absolutely clear, you are not suggesting that
       you think that when a bug was identified and
       discrepancies were spotted in accounts, you are not
       saying you think the accountancy discrepancies were not
       dealt with, you are not saying that, are you?
   A.  No, I'm not saying that.  What I'm saying is they were
       identified typically by Fujitsu, and I don't know what
       the process was, and Fujitsu will say that they don't
       know because it appears in all the documents, they don't
       know what Post Office does to correct that.  That is a
       missing part of the evidence.  So I'm not saying I think
       Post Office do nothing about it, I'm simply saying
       I don't know what that process was.
   Q.  Right.  You are not suggesting that you think, on the
       basis of documents you have seen, that it is likely that
       Post Office do nothing about it?  You are not saying
       that, are you?
   A.  No, I'm saying the opposite.  It is likely that they do
       something about it.  I'm saying there is no evidence
       available to --
   Q.  I'm grateful.  Then that explains what I was trying to
       explore with you.  That explains why you feel able to
       judge, as you do in paragraph 3.7, that Horizon is
       relatively robust.  On the basis of the evidence you
       have seen --
   A.  Yes.
   Q.  -- including the evidence you have seen of the Fujitsu
       processes and other documents including Post Office
       processes, you are happy, and it is your considered
       view, that Horizon is relatively robust?
   A.  Yes.
   Q.  Thank you.  Now let's get back to what it means --
   MR JUSTICE FRASER:  Mr de Garr Robinson, we are going to
       have a break at some point.  Is now a good time?
   MR DE GARR ROBINSON:  It is a perfect time.
   MR JUSTICE FRASER:  We will come back in at 11.55 am.
           Mr Coyne, you are in the middle of giving your
       evidence.  I am sure you have heard me say this before.
       You are not to speak to anyone about the case and this
       applies throughout the week because you are going to be
       there all week.  I know you know it, I might bore you
       senseless by repeating it every time we stop.  You don't
       have to stay in the witness box but don't talk to
       anybody else about the case.
           We will come back in at 11.55 am.
   (11.51 am)
                         (A short break)
   (12.00 am)
   MR DE GARR ROBINSON:  Mr Coyne, getting back to what it
       means for Horizon to be relatively robust.  You have
       described the systems which you say are comparable to
       which you have compared Horizon.  The systems that you
       are talking about, they are usually in the private
       sector, I apprehend?
   A.  No.  No, across --
   Q.  Okay, across both.  But the kind of businesses you are
       talking about, banking, retail, those are private
       sector?
   A.  Yes.
   Q.  Those sorts of systems have quite exacting requirements
       of robustness, don't they?
   A.  Yes.
   Q.  No system can be perfect, everyone agrees that, but the
       large and complex businesses that use these sorts of
       systems, they don't have much tolerance for widespread
       errors in data entry, processing or storage, do they?
   A.  No, that is right.  They certainly strive to remove that
       wherever possible.
   Q.  Given the number of transactions and the importance of
       handling and accounting those transactions properly,
       those businesses require the overwhelming majority of
       their transactions to be handled and accounted for
       properly, don't they?
   A.  They do indeed, yes.
   Q.  They can only afford for a tiny proportion to suffer
       from lasting errors, yes?
   A.  Yes.
   Q.  Air traffic control and medical machines, frankly they
       can't afford any errors at all.
   A.  Indeed.
   Q.  But the kind of systems we are talking about, their
       tolerance for errors is very low, yes?
   A.  Certainly it will be fractions of a percent of the total
       transaction, whatever the transaction might be, yes.
   Q.  Any significant level of non-transient errors would be
       quite a serious threat to their businesses, wouldn't it?
   A.  Yes.
   Q.  It would be a threat to their customer base, a threat to
       their manageability, a threat to their manpower
       requirements, having to run around dealing with
       problems, a threat to their operating costs, a threat to
       their profitability, and given that businesses operate
       in a competitive world where other businesses are happy
       to displace them, it could be a threat to their very
       survival, would you agree?
   A.  It could be.  They are quite generic statements but
       I don't disagree with any of them.
   Q.  Those are the businesses to which you have compared
       Horizon, yes?
   A.  Yes.
   Q.  So when you say the Horizon system is relatively robust,
       you are saying that in the overwhelming majority of
       cases where conditions are both normal and adverse it
       works reliably, yes?
   A.  Yes, the vast majority of all the transactions that flow
       through the Horizon system will work successfully.
   Q.  And although there are occasions when it doesn't, those
       represent only a tiny proportion of the work that it
       does, correct?
   A.  Yes, it will be a small fraction of the work that it
       does, yes.
   Q.  Even within that tiny proportion, a large majority of
       the problems thrown up are picked up and corrected by
       the various systems in place that are designed to do
       precisely that?
   A.  Certainly many of the ones that go wrong for one reason
       or another appear to be picked up.  There are examples
       where they don't appear to have been picked up and
       examples which appear to have an impact.
   Q.  That is a very important opinion, isn't it, in the
       context of this case?
   A.  Yes.
   Q.  For the purposes of this trial?
   A.  Yes.
   Q.  That being the case, Mr Coyne, I wonder why you haven't
       actually spelt out that in your reports or your joint
       statement?
   A.  I believe that I have.  Have I not?
   Q.  It may be unfair, Mr Coyne, but my sense is that in both
       your reports you tried to give a rather different
       impression, an impression of a system which is beset by
       problems, the sheer volume of which means it cannot
       sensibly be regarded as reliable.  Would that not be
       fair?
   A.  I don't believe that that's fair, no.
   Q.  Let's have a look at your first report.  If we could go
       to bundle {D2/1/25}.  This is the report -- your first
       report that you produced in mid-October.  And if we look
       at paragraph 3.1 --
   MR JUSTICE FRASER:  I do not think we are on the right page
       on the common screen.
   MR DE GARR ROBINSON:  {D2/1/25}.
   A.  Yes.
   Q.  You recite the agreement in paragraph 3.1 contained in
       joint statement 1?
   A.  Mm.
   Q.  You say in paragraph 3.2:
           "Each discovered bug ... could have remained
       unresolved in Horizon for varying periods of time."
           And you add that there is a possibility of other
       bugs.
   A.  Mm.
   Q.  Then you say this in 3.3:
           "The sheer volume of known error logs and
       reconciliation reports confirm the wide-ranging extent
       of the impact of such bugs ... This evidence
       demonstrates that such bugs ... would undermine the
       reliability of the Horizon system to accurately process
       and record transactions."
           That seems quite an ominous statement to make given
       the propositions that you have just agreed with me
       a minute and a half ago, Mr Coyne.  Do you not see
       a tension?
   A.  Yes, I think I do actually.  At that point in time we
       had a document set that consisted primarily of known
       error logs.  I think the PEAKs had only just been
       disclosed a few days --
   Q.  Weeks?
   A.  Sorry?
   Q.  Would it not be weeks?
   A.  I don't know exactly how many.
   Q.  I'm sorry, I interrupted you.  Please carry on.
   A.  Perhaps if we establish what the date was.  I think we
       do mention it in the reports.
   Q.  Yes.  Please carry on.  I interrupted you and
       I shouldn't have.
   A.  So what we are saying there is the full picture was yet
       to be revealed and that it may well undermine the
       reliability of Horizon.
   Q.  So are you suggesting, Mr Coyne, that when you produced
       your first statement you were doubtful about whether it
       was robust?
   A.  Mm.
   Q.  And it is when you produced your second statement, when
       you had more opportunity to look at the PEAKs and so on,
       that you formed the impression that it was robust after
       all?
   A.  I had a different concern when it came to create my
       supplemental report because there was the discovery of
       far more defects than it was originally said existed.
       When putting together my first report I thought the
       analysis had already been done to establish that there
       were only three defects.  I discovered a fourth defect
       but then shortly afterwards discovered many more.  It
       was also the case that I had seen a number of reports
       about improvement of the processes that was in place.
       But then it transpires that when we saw some of the
       witness statements that those processes, those
       improvements in processes, hadn't been adopted.
           So there was a number of other factors that were
       brought in place that confirmed that there was large
       elements of unreliability.  That doesn't take away my
       overriding statement that the Horizon system is
       relatively robust.
   Q.  Mr Coyne, one of us is confused and it might be me.
       I had taken you to paragraph 3.3 and suggested to you
       that the impression, the strong impression given by
       paragraph 3.3 was that Horizon wasn't very robust at
       all.  My understanding of your answer, and it may have
       been a false understanding on my part, was you said,
       well, at that stage we only had the PEAKs for a few
       days, and the impression I got was you were saying it
       was only later I realised that Horizon was relatively
       robust.  So I suggested -- I asked you about that.  And
       then what you actually said was, no, no, in my later
       report I thought Horizon was less robust.
           So at the time of this report your view as to the
       robustness of Horizon was at its zenith, was it?
   A.  Could you clarify what you mean when you say zenith.
   Q.  It was at its peak.  This was at a time when you thought
       Horizon was very robust and it is only later that you
       then downgraded it to relatively robust?
   A.  There's different aspects of it.  This is the
       complication with robustness, it isn't an entity that
       can be measured by one simple set of criteria.
   Q.  All I'm trying to ascertain with you, Mr Coyne, is why
       on the one hand you were saying at the time of this
       report you thought that Horizon was relatively robust,
       you felt able to include -- to say what you said in
       paragraph 3.3, which gives a completely different
       impression.  I would like you to explain how you felt it
       appropriate to do that.
   A.  What I said there is correct, that the bugs, errors and
       defects that we see, when they trigger they would
       undermine the reliability of Horizon and did undermine
       Horizon's reliability.
   Q.  What you say is -- look at the first sentence:
           "The sheer volume of known error logs and
       reconciliation reports confirm the wide-ranging extent
       of the impact of such bugs ..."
   A.  Yes.
   Q.  So first of all you say that there is a huge volume of
       KELs showing bugs with branch impacts, do you?
   A.  Typically the KELs show that PEAKs exist that have had
       branch impacts, but the KEL is the knowledge document.
   Q.  You appear to be saying there, Mr Coyne, and it may be
       that I'm not being clear enough.  Let me be absolutely
       clear.  You appear to be saying there that there is
       a large volume of KELs which demonstrate bugs in the
       Horizon system which had branch impacts.  Is it the case
       that at the time you wrote this report you had seen
       a large number of KELs showing bugs with branch impacts?
   A.  Right, it is important to understand -- in order to
       answer that, it's important to understand the
       relationship between KELs and PEAKs.  A KEL is
       a document which is often updated with new knowledge
       that will enable Fujitsu's support department to better
       support the users as and when they find a particular
       defect on the system.  Contributing to that KEL is
       a number of PEAKs.  There might only be one occurrence
       of a PEAK that leads to a KEL, there might be twenty or
       thirty different PEAKs that contribute to a KEL.  So the
       fact that we had the KELs at that point in time and
       those KELs indicated problems, and there were a number
       of PEAKs that hadn't yet been fully examined and I set
       out that in my report, but of the PEAKs that had been
       examined there were PEAKs that suggested impact on
       branch accounts.
   Q.  Let me ask my question again but I will do it in
       a different way.  Let's cross out the word "and
       reconciliation reports" in the first sentence so it now
       reads:
           "The sheer volume of [KELs] ... confirm the
       wide-ranging extent of the impact of such bugs ..."
           So you are referring to a large volume.  It's not
       just a number, a significant number, you're saying
       a large volume.  It's a substantial body of KELs --
   A.  Yes.
   Q.  -- confirming the wide-ranging extent of the impact of
       bugs.
   A.  Yes.
   Q.  Is that the case, that you had seen a large volume of
       KELs indicating the wide-ranging extent of the impact of
       bugs?
   A.  Yes.
   Q.  How many?
   A.  A number are listed in this report but I don't know
       precisely what the number is.
   Q.  And when you say impacts, you are talking about branch
       impacts, aren't you?
   A.  Yes.
   Q.  So you are saying there was a large number of KELs which
       you had already seen at the time of this report that
       confirmed that there were bugs, wide-ranging bugs -- or
       confirmed bugs which had a wide-ranging impact on branch
       accounts?
   A.  Yes.  Certainly within the KELs there was reference to
       discrepancies which appeared to be on branch accounts.
   Q.  Mr Coyne, I would like to suggest to you that in the
       whole of this report that goes on for over 200 pages,
       you refer to very few KELs that actually confirm the
       existence of branch impacts?
   A.  There is a table I believe at the back of this report
       that sets out the number of KELs.
   Q.  What page would that be?  I may not have it in hard
       copy.
   A.  Appendix G.
   Q.  What page?
   A.  200, I believe.
   MR JUSTICE FRASER:  {D2/1/213} is appendix G.  Could you
       give me one second, please.  (Pause)
           Go ahead, they are just going to sort out my
       screens.  The common screen is fine, it's my custom
       screens.
   MR DE GARR ROBINSON:  Mr Coyne, I have looked at the bug
       table in the second joint statement of the experts.
   A.  Yes.
   Q.  The bug table in joint statement 2 is a table which sets
       out the bugs that you have identified which you believe
       show evidence of branch impacts, yes?
   A.  Yes.
   Q.  That table, if my calculations are correct, only refers
       to four bugs that you had identified in your report in
       addition to the three bugs that had been accepted by --
       already disclosed by Post Office.
           Now, what I would like to understand is do you
       accept in principle that that's the position?
   A.  I don't I don't know if that's the number.  That is a
       number you have calculated, haven't you?
   Q.  Yes.
   A.  I haven't done the calculation.
   Q.  There are 29 bugs in the bug table.
   A.  Yes.
   Q.  Many of those bugs were only identified either by
       Dr Worden in his report or by you in your second report,
       yes?
   A.  I believe Dr Worden only identified the three bugs that
       had already been identified.
   Q.  That's not -- perhaps we will come to that in due
       course, Mr Coyne.  In fact, Dr Worden -- I think the
       number may be nine, something like nine bugs he had
       identified in his first report that are now to be found
       in the joint statement.  Did you not appreciate that was
       the case?
   A.  I don't know whether that's correct or not.
   MR JUSTICE FRASER:  But the KELs you were being asked about
       volume, they are the ones listed in appendix G?
   A.  Yes.
   MR DE GARR ROBINSON:  What I'm suggesting to you, Mr Coyne,
       is very few of these KELs have turned up -- or the bugs
       to which you say these KELs relate, very few of them
       have turned up in the joint statement bug table.
   A.  Right, okay.  I'm not sure that is correct.
   Q.  I'm suggesting to you, Mr Coyne, that you had not seen
       a large volume of KELs showing branch impact -- showing
       bugs with branch impacts at the time you wrote this
       report?
   A.  Well, I believe a number of these KELs that are
       contained within this appendix have impact.
   Q.  Are you suggesting that all of these KELs relate to bugs
       which had branch impact?
   A.  Many do, but what you have to remember about the KEL is
       the KEL doesn't specifically relate to the branch.
       That's typically the PEAK.
   Q.  Let's not talk about -- I'm just trying to analyse what
       you said in paragraph 3.3 of your report.  You said the
       sheer volume of KELs confirm the widespread branch
       impact.  And I'm suggesting to you, Mr Coyne, that you
       had not seen a huge volume of KELs which confirmed
       branch impact at the time.  You just hadn't.
   A.  That paragraph would be better if it said: the large
       number of KELs that I have reviewed and a portion of the
       PEAKs that have recently been disclosed and I have
       reviewed dot dot dot, and carry on with that paragraph.
       That would be nearer --
   Q.  If we look at page 214, for example, it starts with "Pin
       pad", pin pad errors.  So you have six pin pad errors.
       {D2/1/214]
   A.  Yes.
   Q.  You are not suggesting those pin pad errors had branch
       impact, are you?  Those pin pad errors meant the branch
       couldn't do business with a particular customer.  They
       didn't actually create an error in branch accounts, did
       they?
   A.  It is possible they might.  We would have to go through
       and look at the detail.
   Q.  So you are suggesting that there are errors in pin pads
       which are covered by KELs which have created branch
       impacts, are you?
   A.  Yes.
   Q.  Because what's curious is I don't believe there are any
       of those in the bug table in JS2.
   A.  Yes, I believe there was the scenario where it was
       remembering the account of the last person that should
       have been paid.  So was it the allpay defect?  The
       payment that should have gone to other beneficiaries was
       all sent to allpay instead because of a defect?
   Q.  I will have to look at that later.
           Going back to page 25, paragraph 3.3, you explained
       that you think you had seen already, by the time of your
       first report, a large volume of KELs showing widespread
       branch impact {D2/1/25}, and you say that it is not the
       KELs so much as the PEAKs that refer to them, is that
       how you put it?
   A.  KELs indicate that there was a defect and it is
       typically the PEAKs that record the particular branch
       impact.  So by looking at either you can tell there was
       a problem, but it is only when you look at both the KEL
       and the related PEAKs that you understand the scope of
       the problem.
   Q.  Wouldn't it be fair to say though that when you look at
       a KEL, generally speaking the KEL which deals with it --
       and KELs deal with all sorts of things, including things
       that are not bugs at all.  But when you look at a KEL,
       generally the KEL will explain what the impact of the
       problem is, the nature, the practical consequence of the
       problem that has to be dealt with, would you accept
       that?
   A.  Yes.  It might, for example, say there is a bug and we
       believe this is going to cause a discrepancy and we have
       spotted it in eight branches, but it won't tell you what
       the impact on those eight branches is.  For that you
       have to go to the particular PEAK.
   Q.  Generally speaking then, if there is a KEL that
       addresses a bug that has a branch impact, generally it
       will tell you?
   A.  Generally speaking.
   Q.  On the vast majority of occasions, yes?
   A.  I'd prefer to stick with generally speaking.  I don't
       know if it is the vast majority.
   Q.  Okay.  You then say in paragraph 3.3 -- let's cross out
       "known error logs", you now say:
           "The sheer volume of ... reconciliation reports
       confirm the wide-ranging extent of the impact of such
       bugs ..."
           So you are suggesting here that reconciliation
       reports are good evidence of bugs in Horizon which had
       branch impacts, are you?
   A.  Yes, there was a response to a question that I asked
       about reconciliation, I don't know exactly how it was
       phrased, but I asked for the number of reconciliation
       problems that required manual intervention, and the
       answer I was given was that it was hundreds of thousands
       per week, I think was the --
   Q.  10,000 a week that have to be F99ed, do you remember
       that?
   A.  Yes.
   Q.  What is a reconciliation report?
   A.  Where there has been a problem within the system for one
       reason or another and the transaction has not proceeded
       to completion as it would originally have expected.
   Q.  Let me put to you what a reconciliation report is just
       to save some time.  When a transaction is done in
       Horizon and the basket is committed to the system, the
       transaction goes into the branch accounts, yes?  That
       transaction goes into the branch database.
   A.  Mm.
   Q.  And then copies of those transactions are then
       transmitted through systems such as the TPS system,
       could you explain what the TPS system is?
   A.  Transaction processing system.
   Q.  What is the TPS system?  What does it do?
   A.  It sends -- well, it decides what payments need to go to
       what particular beneficiaries.
   Q.  Is that right?  Doesn't it transmit information relating
       to these transactions that had been committed to the
       BRDB to Post Office's back-end systems?
   A.  That is right.
   Q.  And isn't it Post Office's back-end systems, like
       POLSAP, like Credence and so on, isn't it those systems
       that then do the steps that are needed to ensure that
       payments are made by financial institutions and so on,
       is that right?
   A.  Yes, there is a harvesting process which will pick up
       various transactions and will put them in certain
       buckets, and then there are various processes that goes
       on with those.
   Q.  And the harvesting process is a process by which --
       well, what happens is transactions go into the TPS
       system and they are then propagated into POLSAP and
       other management information systems that are maintained
       by Post Office, yes?
   A.  Records of those will do, but then a number of the
       transactions will then go on to -- for example, if it is
       a bill that's being paid it will go on to agree that
       payment with whoever the party is.
   Q.  What happens then is -- generally the financial
       institutions making payments have received messages
       direct from things like the pin pad?
   A.  Yes.
   Q.  And what then happens is the financial institution has
       its own record of the transactions it thinks are being
       done?
   A.  That is right.
   Q.  And Post Office has its record of the transactions it
       thinks are being done?
   A.  Yes.
   Q.  Those records are maintained on Post Office's systems?
   A.  Agreed.
   Q.  And then there is a reconciliation process by which
       those systems are automatically reconciled to see
       whether they agree with each other?
   A.  They should be automatically reconciled, yes.
   Q.  That is what you describe as reconciliation, and that
       process generates reconciliation reports, doesn't it?
   A.  Yes.
   Q.  And when there are exceptions, then in those
       circumstances there are reports indicating transactions
       where some of the information which Post Office has
       about them, it differs from some of the information that
       the financial institution has about them?
   A.  Yes, something has gone wrong with the process.
   Q.  Yes.  And it might be that some attributes are missing
       that have nothing to do with the basic transaction
       details?
   A.  It could be any aspect of it --
   Q.  It could be time stamps, it could be anything.
   A.  It could be value, it could be anything.
   Q.  It could even be that there has been a delay in the
       financial institution or POLSAP receiving the necessary
       information, couldn't it?
   A.  It could.  I think it is safe to say that something has
       gone wrong, the process hasn't operated as it was
       designed, and an intervention needs to take place to
       correct the transaction.
   Q.  What happens is a reconciliation process is
       automatically undertaken, exception reconciliation
       reports are generated which demonstrate where there are
       exceptions that need to be looked at?
   A.  I'm not sure a reconciliation process is automatically
       undertaken.
   Q.  Mr Coyne, when you have 3 million transactions that are
       on the Bank of Ireland's books and 3 million
       transactions that are on Post Office's books, you don't
       have a human being comparing those two sets of
       transactions, do you?
   A.  No, but that's when it is working as expected.  When
       something has gone wrong this is the reconciliation
       process that I'm talking about there.
   Q.  We are getting bogged down in a way that I'm finding
       quite surprising.  The process by which lists of
       transactions are reconciled is automatic, isn't it?  It
       is electronic?
   A.  Yes, when everything is working fine it is automated.
       Nobody needs to get involved.
   Q.  The process of reconciliation is the process of
       comparison between the two sets of data?
   A.  Yes.
   Q.  That process is electronic, isn't it?
   A.  Yes.
   Q.  And then what happens is there is a report generated on
       a regular basis which identifies reconciliation
       exceptions where for some reason, for the reasons we
       have already discussed, there isn't a full
       reconciliation and something has to be looked at?
   A.  Yes.
   Q.  We have discussed some of the reasons for that?
   A.  Yes.
   Q.  And that's where a manual element can become involved?
   A.  Yes.
   Q.  Sometimes there can be one error which explains 1,000 or
       2,000 reconciliations exceptions?
   A.  Possibly, yes.
   Q.  And there will be a delay in the transaction getting
       through to the bank, or it will be when it did go
       through to the bank there was a time stamp missing so
       the two didn't match.  There could be something like
       that that could explain an awful lot of them?
   A.  There could be a range of different things that are
       wrong with the transaction.
   Q.  And that's when someone has to go and look to see if
       there is a problem?
   A.  Yes, and that is the number that I'm referring to
       because it was suggested that that was in the many
       thousands.
   Q.  But I don't understand, Mr Coyne, why you think that the
       existence of reconciliation reports confirms the
       wide-ranging extent of the impact of bugs in Horizon
       which are having an impact on branch accounts?
   A.  I have worked and designed banking systems, stock
       broking systems.  I have never seen the need for tens of
       thousands of transactions per week to have a human
       intervention.  That suggests that something is going
       wrong.  It is working outside of process on a larger
       scale than I would have expected.
   MR JUSTICE FRASER:  Can I just ask you, at {Day14/77:17} of
       today's transcript you said "it was suggested" that it
       was in the many thousands.  Can you just tell me, "it
       was suggested" doesn't really help me because I don't
       know who suggested what to whom.
   A.  Sorry, my Lord.  I asked the question as part of
       a request for information.
   MR JUSTICE FRASER:  Yes.
   A.  And the response that I was given by Post Office's
       lawyers was -- I believe it was ten thousand.
   MR JUSTICE FRASER:  So that is what you are referring to?
   A.  Yes.
   MR JUSTICE FRASER:  All right.
   MR DE GARR ROBINSON:  Now Mr Coyne, there are many, many,
       many possible explanations for reconciliation exceptions
       that have nothing to do with bugs in Horizon causing
       shortfalls in branch accounts, aren't there?
   A.  There could be, yes.
   Q.  There's no reason to think -- the fact that there are
       any scale of reconciliation exceptions does not
       demonstrate, does not show or confirm, that there are
       any bugs which have an impact on branch accounts, does
       it?
   A.  It certainly could do if the system is having that level
       of failure to reconcile then there is something wrong.
       It is operating outside of the process it should
       operate --
   Q.  Well, I will -- how is it that you are able to judge
       that, Mr Coyne?  Do you know what range the system was
       designed for?
   A.  No, but I have experience of similar systems and I don't
       believe that such a high level of manual reconciliation
       would be tolerated or should be expected.
   Q.  But the possible causes of those reconciliation
       exceptions could involve all sorts of things such as
       phone lines from the Post Office to the financial
       institutions, or the financial institutions' own
       operating systems, couldn't they?
   A.  So that means that that is going wrong each week.
   Q.  The reason why I'm asking you about this is you are
       suggesting that the fact that there are reconciliation
       reports, large numbers of reconciliation exception
       reports, let's call them, is itself confirming that
       there are bugs in Horizon which have an impact on branch
       accounts, and my suggestion to you, Mr Coyne, is that
       doesn't confirm anything of the sort?
   A.  Well, it suggests rather than confirms.
   Q.  And where there is a reconciliation exception which is
       looked into, what happens -- and a view is taken --
       a view will then be taken by Post Office and the
       financial institution as to what the correct position
       would be?
   A.  Mm.
   Q.  If the view is taken that the correct position is that
       the branch account should be corrected, what happens
       then?
   A.  What should happen is a transaction correction should be
       created by --
   Q.  And would you accept that when a transaction correction
       is sent it is more likely than not that the transaction
       correction will correct an error that's happened rather
       than create one, yes?
   A.  It is more likely.  There certainly have been scenarios
       where transaction corrections have caused a problem but
       it is certainly more likely that it would correct it,
       yes.
   Q.  What I suggested to you about paragraph 3.3, Mr Coyne,
       is this paragraph seems designed to give an impression
       that Horizon isn't robust, whereas on the very next page
       you say that it is.  What do you say to that suggestion?
   A.  Well, I'm setting the context before providing my
       summary that it was relatively robust.
   Q.  What I'm finding difficult to understand, Mr Coyne, is
       you say -- you refer to a wide-ranging extent of the
       impact on branches of bugs, and then over the page you
       say but Horizon is relatively robust, and I would just
       like you to explain how is it you felt able to do that?
   A.  Because as I have agreed with Dr Worden, robust doesn't
       mean that there won't be an impact.  The two aren't
       mutually exclusive.
   Q.  You have also agreed with me, Mr Coyne, that in the
       context in which you are using the term relatively
       robust in paragraph 3.7, it means that there's only
       a tiny number, a tiny proportion --
   A.  I didn't say tiny.
   Q.  Really?  Is that not precisely what we were discussing
       before?
   A.  I don't believe I'm using --
   Q.  When we were talking about using comparable systems and
       how they have a low risk tolerance?
   A.  I wouldn't characterise it as tiny.  I probably said
       a fraction of a percentage.
   Q.  Okay.
   MR GREEN:  My Lord, the evidence -- the word "tiny" was put
       and he said a small fraction.  That's what the
       transcript says.
   MR DE GARR ROBINSON:  Yes.  And do you think -- my
       suggestion to you, Mr Coyne, is that in paragraph 3.3
       you're actually trying to give an impression which is
       seeking to undermine actually what is a very helpful
       conclusion that you have set out in paragraph 3.7?
   A.  That certainly wasn't the way it was written.  It was
       constructed to set the context for it.
   Q.  Let me also suggest, Mr Coyne, that in this report you
       also tried to give the impression that the concept of
       robustness has no meaning and it's impossible to
       measure, would you agree with that?
   A.  I do agree that it is impossible -- it is very
       subjective and it is impossible to come up with
       a quantifiable measurement, yes.
   Q.  Now let's go back to the joint statement you made
       shortly before you produced this report.  It is at
       {D1/1/8}, I'm going to page 8.
           Now, I think you have maintained in the evidence you
       have just given that paragraph 3.3 where you talk about
       the sheer volume of things happening is consistent with
       Horizon being relatively robust as compared with its
       comparators, yes?
   A.  Mm.
   Q.  So the fact that there is such a sheer volume is not
       inconsistent with it being relatively robust, is that
       right?
   A.  Yes.
   Q.  Okay.  Well, we have already read what the experts
       agreed in paragraph 2.3.  If we could go over the page
       to the disagreement boxes on page {D1/1/9}, there at the
       top you have got your definition of robustness.
   A.  Yes.
   Q.  Then just below that you say:
           "in consideration of the likelihood of Horizon to be
       the cause of shortfalls in branches, Horizon is not
       determined to be robust in this regard because:
           "(a) It contained high levels of bugs ... which
       created discrepancies in the branch accounts."
           So now I'm really confused, Mr Coyne.  On the one
       hand your judgment on 16th October was that actually
       Horizon is relatively robust and a very small proportion
       of transactions go wrong as a result of bugs, but here
       you appear to be saying the opposite.  Did you have
       a change of mind between agreeing joint statement 1 and
       your first report?
   A.  Joint statement 1 was constructed before the end of the
       first report.
   Q.  Joint statement 1 was on 4 September.
   A.  Yes.
   Q.  Your report was on 16th October.  I will be corrected if
       those dates are wrong.
   A.  Right.
   Q.  Did you change your mind between 4 September and
       16th October?
   A.  What I did is that whilst looking at the factors in the
       round I considered Horizon to be relatively robust,
       whereas my initial opinion was that it was not robust.
   Q.  So you did change your mind, is that right?
   A.  Yes.
   Q.  And what made you change your mind, please?
   A.  It was just a consideration of all aspects in the round.
   Q.  Well, Mr Coyne, in your -- a joint statement is
       an important document, you have given evidence many,
       many times before, haven't you?
   A.  Yes.
   Q.  And you will appreciate this is as important in many
       ways as an expert report, correct?
   A.  It was a very early document, it was when we were
       finding our way around the evidence that was available.
   Q.  Well, you wouldn't express an opinion unless it was your
       considered opinion, is that right, in a joint statement?
   A.  That is true.
   Q.  So if, for example, you felt that things didn't look
       good but you hadn't looked at all the evidence and you
       wanted to withhold judgment, you wouldn't express
       an opinion at that stage, would you?  Or if you did, you
       would express it in a very provisional and equivocal
       way, wouldn't you?
   A.  Yes.
   Q.  But that's not what you do here, Mr Coyne, is it?  And
       I would like you to explain why, please.
   A.  Well, I mean the reasons for that are set out below in
       (a) to (f).
   Q.  So you had seen all these things.  You had seen a high
       level of bugs which created discrepancies in branch
       accounts, had you, already by that stage?
   A.  We had certainly seen the KELs at this stage.  I'm not
       sure whether the PEAKs had been disclosed to us at this
       point in time.
   Q.  No, they hadn't.  So you had seen the KELs, and from the
       KELs alone you felt able to judge, did you, that there
       was a high level of bugs that created discrepancies in
       branch accounts?
   A.  Well, the KELs have a reference within them to the
       PEAKs.
   Q.  Which you hadn't seen at that stage?
   A.  No, but we had seen that there's references to PEAKs.
   Q.  What's the significance of that in the context of my
       question?
   A.  Because it is the KEL that would indicate how many,
       often, of that defect that led to the KEL being created
       had surfaced.
   Q.  So you accept that KELs are actually good -- a KEL will
       be good evidence of whether there is a bug that creates
       a branch impact.  That's your view, is it?
   A.  It is an indicator but you can't use that document
       alone.  You have to look at the PEAKs as well.
   Q.  But Mr Coyne, it seems to me that in paragraph (a) you
       are using that document alone.  You hadn't seen any
       PEAKs at that stage, had you?
   A.  No, we hadn't seen the PEAKs, but we knew that PEAKs
       must have existed and that there are references to them.
   Q.  So what?  Why does the fact that you know there are
       PEAKs you haven't seen enable you to make a judgment
       that you would not be able to make simply by looking at
       the KEL?
   A.  The KEL talks about how the situation that occurs with
       the bug, error or defect should be dealt with, and by
       reading that you get an indication that there is or
       there must be or there likely is a defect within the
       system.  And if the KEL refers to, for example, ten
       different PEAKs then that is an indication, although you
       can't be certain, that there has been ten occurrences of
       that.
   Q.  So what you are saying is that if you see a KEL which
       refers to a bug, you will be able to tell from that KEL
       in the main whether the bug has an impact on branch
       accounts or not?
   A.  There will be sometimes an indication whether there is
       an impact on branch accounts.  We typically will not
       know what branch it is.
   Q.  You say "sometimes"; what I'm suggesting to you,
       Mr Coyne, and I think you know what I'm suggesting to
       you, is KELs are actually a good source of seeing
       whether there is a bug which has branch impact.  You may
       not know the details of branch impact but it is a good
       way of telling -- if there is a bug that is considered
       in a KEL that has a branch impact it is likely to say
       that, isn't it?
   A.  It will often say there might be a discrepancy, yes.
       The way that these documents are created is somewhat
       inconsistent.  You can read a KEL and it will give you
       all the information that you need.  It will relate to
       a branch, it will point out the discrepancy, and that
       KEL on its own might be helpful.  You will read another
       KEL and there's very little information within it.  You
       will need to go to the five PEAKs that relate to it to
       even start to understand what the impact was.  So I'm
       not saying that KELs aren't helpful documents.  I'm
       saying that they need to be read in context.
   Q.  Let's move on from that subject.
   MR GREEN:  My Lord, I didn't want to interrupt.
   MR JUSTICE FRASER:  Are you going to the joint statement?
   MR GREEN:  Yes.  They have agreed on page 26 {D1/2/26} at
       0.3 what the shortcomings of those documents are, so it
       is surprising to hear a different --
   MR JUSTICE FRASER:  I'm aware of that, but if
       Mr de Garr Robinson wants to spend his time exploring
       it, I'm not going to stop him.
   MR DE GARR ROBINSON:  Mr Coyne, at this stage you had only
       seen the KELs and you were in a position to make
       a judgment that there were a high level of bugs that
       created discrepancies, were you?  That was your
       considered view then just on the basis of seeing KELs?
   A.  As I pointed out, whilst I had only seen KELs I had seen
       references to a number of PEAKs as well.
   Q.  Then after 4 September PEAKs were disclosed?
   A.  Some PEAKs were disclosed.
   Q.  A large number of PEAKs were disclosed?
   A.  Yes.
   Q.  Something like 200 and something thousand, is that
       right?  I'm not sure there were any other material
       documents disclosed between 4 September and 16th October
       that are relevant to the this question.  Can you think
       of any?
   A.  I'm not sure.  I did try and map out all the various
       disclosures that have taken place but that doesn't
       appear --
   Q.  The ones that I'm aware of are the PEAKs.
   A.  Right.
   Q.  Clearly you had a change of mind between 4 September and
       16th October.  Would I be right in thinking that on
       seeing the PEAKs, that caused you to change your mind?
   A.  Certainly the PEAKs do help to set the context about how
       problems are dealt with.  So they would help, yes.
   Q.  You have plainly had seen something good between
       4 September and 16th October and what I'm trying to
       explore with you, Mr Coyne, is what that good thing was.
       What had you seen that made you change your mind?
   A.  Certainly the PEAKs would be part of that,
       an understanding better of the processes that are in
       place.
   Q.  So would you accept you were rather hasty in expressing
       the judgment you express here on page 9? {D1/1/9}
   A.  I'm certainly content with my opinion as expressed in my
       report.  Yes, it would probably be better for me not to
       have expressed that particular opinion there so early.
   Q.  Do you think it would have been helpful in your report
       to have explained why you changed your mind?  It was
       a very surprising volte-face.  Do you think it might
       have been helpful to allow everyone to understand what
       it was that was good about the system that allowed you
       to form the view that Horizon was robust?
   A.  "Relatively robust" was the term.
   Q.  Yes, relatively robust.
   A.  Yes, I mean --
   Q.  The reason why I ask is you see in joint statement 1 you
       are resolutely negative about Horizon.  In your report
       on 16th October you say Horizon is relatively robust but
       the rest of your report says negative things about
       Horizon.  There's very little that's said that is good
       about Horizon.
           It is difficult to resist the impression, Mr Coyne,
       that in your first report you were trying to say bad
       things about Horizon and you were not interested in
       saying anything that was good.
   A.  I reject that.
   Q.  Would that be fair?
   A.  No.
   Q.  What is it that was good about Horizon that caused you
       to change your mind and where do you describe that,
       where do you consider that in your first report?
   A.  What was helpful was to understand the support process
       in more detail to understand how things such as fault
       determination is done, albeit it is only
       an understanding of how it is done within Fujitsu, to
       understand that process more.  So that was an improving
       position for me.
   Q.  I see.  And your judgment on reviewing the PEAKs was
       that Fujitsu actually had quite a good support process,
       is that right?
   A.  Yes, I mean the support process that Fujitsu operate,
       and again this changes over time so it is very difficult
       to pick a point in time and understand what obligations
       they had, what roles and responsibilities they
       fulfilled, but certainly by the time they become aware
       that somebody believed there was a problem, so it hit
       SSC, the support centre, third line support, the process
       they had of determining whether there was a fault
       appears to be a reasonably good process.  So there's
       obvious weaknesses, how does the fault get to them in
       the first place?  And that's --
   Q.  When you say obviously weaknesses, why is it obvious
       that there were such weaknesses?
   A.  No, no, what I'm saying is the obvious weakness in the
       opinion is we don't know what happens before it gets to
       Fujitsu, but then once it comes into Fujitsu and they
       determine that, yes, there has been a problem, or there
       has not been a problem, and they believe there is
       a discrepancy, you will see quite often that there is
       a line at the bottom of the PEAK saying, hand this back
       to Post Office for them to do whatever they need to do
       to branch accounts.  So the process is then handed over.
           So we don't know happens afterwards and we don't
       know what happens before but the process with Fujitsu,
       certainly SSC, appears to be a reasonably good process.
   Q.  So what you found when you read the PEAKs was that when
       a call got referred to the SSC, either because it is
       a subpostmaster call, or perhaps it might be automatic,
       it might be from the MSU because of a reconciliation
       issue, your view was that Fujitsu was quite good at
       spotting if there was a problem in Horizon, is that
       right?
   A.  Yes.
   Q.  And it was quite good at making sure that problem was
       fixed, yes?
   A.  Yes.
   Q.  And it was quite good at identifying the consequences of
       a problem and informing Post Office as to what those
       consequences were, yes?
   A.  I don't know whether they informed Post Office.  In
       their own records you would often see comments such as
       corrections will need to be made.  There is a number of
       references to say we do not know what Post Office's
       process will be to deal with this but it does need
       dealing with.
   Q.  But it is fair to infer, isn't it, and I suggest that
       you have inferred from all the PEAKs you have seen, that
       where there is a bug that has been identified that
       appears to have had an impact on branch accounts,
       Fujitsu are quite good at identifying the branches that
       had been affected by that bug?
   A.  They are quite good.  They will often take quite a long
       time in identifying which branches are affected.  Such
       as Dalmellington, Fujitsu were not asked to get involved
       in that for a number of years after it had been
       impacting a branch account.  When they did get involved
       they quite quickly established all the historic impact
       of that.
   Q.  Just to go back to my question.  Fujitsu are quite good
       at identifying the branches that have been affected by
       those kind of bugs?
   A.  In the main, yes.
   Q.  Thank you.  And it is fair to infer that Fujitsu then
       tells Post Office what those effects are?
   A.  Well, that's the bit that I don't know because I don't
       know what the process is.  I do not think we have had
       sight.  There was some very, very -- there was some
       disclosure made only very recently which are the BIMS
       documents, and I think the BIMS documents are in part
       a communication between Fujitsu and Post Office, setting
       out what the likely impact might be.  There's also OCR
       and OCP documents.
   Q.  That's not relevant to this, though, is it?
   A.  It is a communication between Fujitsu and Post Office --
   Q.  I see.
   A.  -- saying that changes were going to be made.  So it may
       well be relevant to this.
   Q.  But it is right, isn't it, that Fujitsu, from what you
       have seen of the PEAKs, will work out the branches which
       have been affected by any bug that they identify, yes?
   A.  That is what they set about to do, yes.
   Q.  And you don't assume -- you don't infer, do you, that
       having identified those branches Fujitsu then keep that
       information to themselves?  You infer that that
       information is passed onto Post Office don't you?
   A.  I think so.  There is certainly one reference in a PEAK
       where it says I suggest we don't tell the branch about
       this, but I'm not sure whether that's we won't tell
       Post Office about it, it is more keeping it from the
       branch rather than Post Office --
   Q.  And that's the only PEAK of any kind that you have ever
       found of that sort, isn't it?
   A.  Yes, I believe so.
   Q.  So we have one PEAK over 20 years that says something
       like that.  In those --
   A.  Sorry, we should be careful.  I haven't had eyes on all
       of the 200,000 PEAKs.
   Q.  Yes.  So all of those things that we have been talking
       about you consider, and you considered by the time of
       your 16th October report, were quite good?
   A.  Yes.
   Q.  What I don't understand, Mr Coyne, is why you didn't say
       any of that in your report.  Would it not have been
       a balanced thing to do?
   A.  Perhaps.  Looking back at the report, possibly.
   Q.  Would it not have been helpful to explain the good
       aspects that you had spotted in the system as well as
       the bad ones?
   A.  Possibly.
   Q.  Did you have a reason for wanting to keep it back?
   A.  No, not at all.
   Q.  The impression I get, Mr Coyne, I'm sorry to put this to
       you, is that your first report was designed to give
       a very poor impression about Horizon --
   A.  No.
   Q.  -- and that if you had included what you've just
       described to me it would have given a much less poor
       impression of Horizon.
   A.  I mean, as I say in my report, we'd been asked to
       identify specific bugs, errors and defects and the
       nature of that type of assignment is to drill in and
       find occurrences of that.  Talking about all the good
       things that could and should happen, either generically
       in the industry or that Post Office might do this year
       as a result of various improvements in place, doesn't
       really in my opinion provide much assistance.
   Q.  But isn't it a necessary part of the judgment you make
       as to whether Horizon is robust?  How can you make
       a judgment about that without taking it into account?
   A.  I think you can take it into account, but to spend pages
       of text talking about all the various good things,
       I don't see there's any value in that.
   Q.  Well, Mr Coyne, can I ask you -- put it this way, what's
       the value of doing this: saying in your joint statement
       on 4 September that Horizon really isn't robust because
       it has a high level of all sorts of bad things, six
       weeks later producing a report by which time your view
       has changed diametrically, and not mentioning what it
       was that you had seen in the intervening time that
       caused you to change your mind?  Wouldn't it be obvious
       that you needed to explain that to the court to help it
       make its own determination?
   A.  Firstly, I don't believe that my opinion has changed
       diametrically.  It is a spectrum of robustness, as
       I tried to explain this morning, and I believed that
       Horizon has gone further up on the spectrum.  There's no
       complete change of direction here.
   Q.  I see.  Just looking at page {D1/1/9} you say:
           "... Horizon is not determined to be robust in this
       regard because:
           "(a) it contained high levels of bugs ... which
       created discrepancies in the branch accounts ..."
           At that stage -- we are going back to 4 September --
       how many bugs had you identified which created
       discrepancies in branch accounts?
   A.  More than the three that had been originally brought to
       my attention.
   Q.  But three is not high level and nor is four.  You say
       "high levels of bugs".  What did you mean by the
       expression "high levels of bugs"?
   A.  Certainly in the tens.
   Q.  In the tens?
   A.  Yes.
   Q.  So we are talking about a system which has operated over
       20 years, yes?
   A.  Mm.
   Q.  Which undertakes something like 47 million transactions
       a week.  So we are talking about 49 billion transactions
       over a 20-year period, something like that.  It is the
       right ballpark, isn't it?
   A.  Mm.
   Q.  We are talking about two different versions of Horizon,
       and you are saying that a number of bugs in the tens
       over that period is properly to be characterised as
       "high levels of bugs"?
   A.  Well, that is what had been identified at this point in
       time, but you have got to remember my expectation was
       set that I was investigating the three defects that had
       occurred by people that had been involved in the
       investigation with this system for a long time.  So to
       move from three to a larger number than that initially
       suggested that there must be some quite poor processes
       in place if they can't identify bugs, errors and defects
       which, for myself, being involved in the process for
       only a number of weeks, quickly identified them --
   Q.  I'm really sorry, I'm sorry to stop you, Mr Coyne, but
       I really need to ask you, first of all, did anyone ever
       tell you there were only ever three bugs that had ever
       occurred in Horizon?  Has anyone ever said that to you?
   A.  I think it was said -- I think in part of the pleadings,
       part of the legal documents, I believe it was pointed
       out that there was three defects which had impacted
       branch accounts.
   Q.  Has anyone ever told you there were only three defects,
       that those were the only?  Defects because I suggest to
       you that no one has ever said that to you, including in
       the pleadings.
   A.  That was certainly my original expectation when
       I started.
   Q.  I see.  Then as a result of looking at these KELs you
       realised there were more than three?
   A.  Yes.
   Q.  And I think you have suggested that at this time you
       took the view that there were in the range of tens of
       bugs, is that right?
   A.  Yes.  There was certainly a large number of KELs that
       warranted further investigation because they were
       indicative of having an impact on branch accounts.
   Q.  So hold on.  You had seen some KELs that might be
       consistent with branch impacts but you were not sure
       yet, is that right?
   A.  Yes.  As I explained before, KELs relate to PEAKs, and
       really in order to confirm the position you need to read
       the PEAKs.
   Q.  So these were not KELs that you knew created branch
       account discrepancies, so let's lay those to one side,
       shall we.  You are making a claim here that there is
       a high level of bugs that created discrepancies in
       branch accounts and I would like you, if you can
       remember, to tell me, at that time on 4 September, what
       was the level of bugs you had found that created
       discrepancies in branch accounts?
   A.  That would be in the tens.
   Q.  In the tens?
   A.  Yes.
   Q.  I mean, Mr Coyne, looking at your bug table, and it may
       be that my approach to it is all wrong, in the bug table
       in JS2, 29 bugs are identified, correct?
   A.  Yes.
   Q.  And of those 29 a very considerable number were only
       identified either in Dr Worden's report or in your
       second report, and the number that remain in JS2 from
       your first report is a relatively small number, far less
       than ten?
   A.  Right, okay.  I haven't done the maths so I don't know
       if that calculation is actually correct, but it is
       certainly the case that with the additional context with
       the provision of the PEAKs that a number of KELs that
       I initially thought led to branch accounts then appeared
       not to, and there was additional PEAKs that indicated
       branch account impact so we brought them back in again.
       And that's the importance of reviewing the documents
       side by side.
   Q.  So are you saying -- and this is the last question I
       will ask before we break for lunch -- that at the time
       you made this report you thought there were more bugs,
       branch account affecting bugs in Horizon than you
       thought at the time you made your first joint statement,
       or less?
   A.  No, I think the number is probably around the same.
       I think I ended up with 28 or 29 ...
   Q.  That's your second joint statement.  I'm asking you
       about your first joint statement.  Between 4 September
       when you produced joint statement 1 and your first
       report in the middle of October, had your view as to how
       many branch affecting bugs there were gone up or gone
       down?
   A.  No, it had gone down.
   Q.  Because of the PEAKs that you saw?
   A.  Yes.
   MR DE GARR ROBINSON:  Thank you.  My Lord, is this
       a convenient moment?
   MR JUSTICE FRASER:  Yes, we will come back at 2.05 pm.
           Remember what I said, Mr Coyne.
   (1.04 pm)
                     (The short adjournment)
   (2.05 pm)
   MR DE GARR ROBINSON:  Mr Coyne, we have been looking at your
       first statement of 4 September and I would like now to
       move on properly to 16th October.  This is the time of
       your first report.
           Can we look at {D2/1/1} which is the front page of
       your report.  You say by this time you had examined
       a number of KELs and PEAKs which had recently been
       disclosed?
   A.  Yes.
   Q.  Just looking at page 1 of your report, I see that you
       were assisted by four people?
   A.  Yes.
   Q.  Could you explain who those four people are?
   A.  They are all members of my team that helped me with
       various projects, both contentious and non-contentious
       projects.
   Q.  They work for IT Group, do they, your company?
   A.  Yes.
   Q.  What are their qualifications, their specialities within
       IT Group?
   A.  So Siobhan Forster specialises in databases.  She
       graduated after doing a forensics -- a technology
       forensics degree from Preston and has worked with me for
       a number of years.  Chris Raske is more to do with the
       roles and responsibilities side of my business, so he
       understands what various parties do do or should do.
       Jamie Smith is one of the researchers that we often use
       on projects, and that's the same for Patrick Grant.
       Patrick Grant has worked as an implementer of a number
       of different computer systems, a programmer, and he has
       worked for us for a couple of years now.
   Q.  So in relation to the preparation of your reports, what
       roles did they play?  What did they do for you?
   A.  They were operating typically as a researcher.  So
       because of the volume of documents, I was asking them to
       identify certain themes.  They would review -- I would
       parcel up a number of the documents that I would search
       for in the disclosure platform and they would try and go
       through and identify whether there was any potential
       relevance in those documents so that I could have a look
       at those and decide whether they should be included in
       the report or not.
   Q.  Were these people working full-time leading up to the
       preparation of the first report?
   A.  No.  The majority of these people were brought in
       towards the end when we were receiving the PEAKs,
       towards the end.
   Q.  So they were engaged in searching the PEAKs and
       presumably searching other documents as well, were they?
   A.  Yes, all of the documents were on a disclosure review
       platform, very similar to the one that we see here.  We
       all sit in the same office, so we would meet each
       morning and I would ask for various categories of
       documents to be searched for and found and gathered
       together.
   Q.  Would I be right in thinking -- you say they weren't all
       working full-time on the case for you, were some of them
       spending more of their time on the case than others?
   A.  Yes, certainly Siobhan Forster worked on the case more
       often than not.
   Q.  Would it be fair to say she spent most of her time on
       the case while you were --
   A.  No, she certainly had other matters that she was dealing
       with, but she worked on it more often than not.
   Q.  What instructions did you give them?  What did you tell
       them to look for?
   A.  Typically I'd conduct the first tranche of searching
       through the material and we would identify materials to
       do with particular types of discrepancy that were being
       discussed within the documents, and then I would sit
       down with one of these chaps, we would go through the
       PEAK or the KEL or whatever the document might be, and
       I would ask them to try and assemble all of the other
       documents that would be in that family.  So it might be
       other PEAKs that report the same thing, it might be the
       KEL, we had a few of the BIMS documents, so to identify
       them, to put together all the package of information.
       That in itself was quite a task.
   Q.  Would it be fair to say that you were generally asking
       them to find problems, to find evidence of problems in
       Horizon, things that had gone wrong?
   A.  Yes.  Well, sorry, I had already identified the theme
       that I wanted them to look for but that was typically
       around a specific type of defect that might be occurring
       around a particular time and I was asking them to look
       at documents around that time or that contained
       a similar theme.
   Q.  So if we go back to the joint statement, having said we
       could move on.  If we can look at {D1/1/2}.  We are back
       on 4 September again.  At this time were those four
       working with you?  Did you already have their
       assistance?
   A.  No, I think it was just myself and Siobhan at this time.
   Q.  So the other three came in later?
   A.  They would have always been in my office.
   Q.  But for the purposes of --
   A.  Yes.
   Q.  If we look at the agreement.  I'm sorry, let's move on
       to page {D1/1/3}.  It says:
           "Each expert's approach to writing his report, and
       to this joint memorandum ... could broadly be one of
       three possible approaches:
           "a) To focus mainly on negative points found in the
       disclosed documents about where Horizon may have fallen
       short.
           "b) To focus mainly on those aspects of Horizon
       which were intended to achieve robustness and
       reliability, and the evidence implying that they
       succeeded."
           Or:
           "c) To provide the court with a clear foundation for
       understanding the design and operation of Horizon; then,
       building on that foundation, to provide a balanced
       assessment of the ways in which Horizon succeeded ..."
   A.  Mm.
   Q.  Now, that's what you agreed with Dr Worden.  If I could
       just then go down to what you describe as areas of
       disagreement.  Second sentence:
           "The issues are about how Horizon and its
       interactive components operated and the processes
       employed by Post Office and Fujitsu in supporting these
       systems and the data within.
           "Whilst my report will take a balanced approach, it
       is the case that many of the issues require a deep focus
       on the occurrences of bugs ... as well as the potential
       for modification of transactional data.  Whilst context
       will be provided as to how Horizon should work in
       typical circumstances, it is the non-typical operation
       where focus will be placed."
           That is right, isn't it, that you focused on things
       going wrong, that's what you were looking for?
   A.  Yes, I looked for things that have actually gone wrong
       and then followed the process through to find out how
       they were dealt with.
   Q.  When you engaged in that process, you have already
       described the team of people that you had assisting you.
       Did anyone else help you?  Did anyone else put forward
       documents for your consideration that might be included
       in the report?
   A.  No.
   Q.  Did you speak to any individual claimants, for example,
       and get any information from them?
   A.  No.
   Q.  Going back to you and your team, you obviously by
       16th October couldn't review all the PEAKs you had been
       given, you had been given over 200,000, so you used
       intelligent search techniques, didn't you?
   A.  Yes.
   Q.  Presumably you used those techniques for the whole
       corpus of documents, not just PEAKs, but the KELs and
       other documents as well, is that right?
   A.  That is correct.
   Q.  What other documents did you search across, can you
       remember, at that time?
   A.  I don't have a list of all the documents.  There is
       a list in my first report, but all the documents all
       went into the same platform, so it will have been every
       document that had been formally disclosed at that point
       in time.
   Q.  Thank you.  Your report says you are of IT Group, when
       you describe yourself at the beginning.
   A.  Yes.
   Q.  Can I ask what your position there is?
   A.  Director.
   Q.  As I understand it, correct me if I'm wrong, IT Group
       offers a disclosure and search capability, doesn't it?
   A.  It does indeed.
   Q.  I read from your website, it is not in the bundles:
           "IT Group's powerful e-disclosure and digital
       investigation solution, Intella Connect, removes that
       headache by enabling you to intelligently search, filter
       and review large volumes of electronic data with speed
       and ease."
           Is that a fair description of the service that
       IT Group provides?
   A.  It is indeed.
   MR JUSTICE FRASER:  Forgiving the split infinitive.
   MR DE GARR ROBINSON:  I'm sorry, my Lord?
   MR JUSTICE FRASER:  I said forgiving the split infinitive,
       "to intelligently".
   MR DE GARR ROBINSON:  I do not think it is possible to
       forgive.  Others may disagree.
           So is it right that you manage the e-discovery team
       in IT Group?
   A.  Yes.  I am the director that is responsible for that --
   Q.  So it is fair to say, isn't it, that you know quite
       a lot about intelligent searching of documents?
   A.  Yes.
   Q.  And you have no difficulty, I'm not saying it is easy,
       in searching through, for example, 200,000 PEAKs in lots
       of very clever ways that I am sure I couldn't think of?
   A.  Yes.
   Q.  Would that also be true of your team of assistants?
   A.  Yes.
   Q.  And they would have used these intelligent search
       techniques to go away and find the sort of documents
       that you wanted them to find?
   A.  They would.
   Q.  At your daily meetings?
   A.  Yes.
   Q.  I imagine that your search facility is far more powerful
       than searching for words and symbols within a certain
       distance from each other?  That's the kind of thing I'm
       used to.
   A.  We didn't employ any artificial intelligence, we only
       used the normal standard search techniques.
   Q.  Would I be right in thinking that with your experience,
       you and your team have developed all sorts of tricks of
       the trade with searches to find -- to unearth things
       that the rest of us laymen might find more difficult to
       find?
   A.  I'm not sure which tricks of the trade you are referring
       to.  We do see ourselves as being quite advanced in what
       we can find within documents, yes.
   Q.  Could you give me an idea of some of the intelligent
       searches that you would have used in a case of this
       sort?
   A.  So typically we were looking at documents that were
       talking about discrepancies, that would be talking about
       errors, bugs, defects, imbalances, things like that.
   Q.  You and your team would search for these documents and
       then they would be reviewed, would they?
   A.  Yes, we would typically try to understand -- because
       often you will find one document but then you need to
       understand where that document sits on the timeline, so
       then you may have to go back a number of documents or
       forward a number of documents -- we have the ability to
       put them effectively in chronological order -- to try
       and see who within the organisation was talking about
       these themes.
   Q.  Presumably you would review the documents that you
       found, but members of your team, when they found
       documents that they thought you were looking for, they
       would review them and then they would bring them to you
       for your review as well if they thought they were good
       ones?
   A.  Yes.  It would be a process of them applying a tag to
       a document.  So essentially they were ruling out
       irrelevant documents.
   Q.  Would they do their own reviewing and then provide you
       with documents that they thought were suitable or did
       you review everything that they tagged?
   A.  There was documents that, as the process went on, they
       become better versed with spotting things that I may
       find of interest within the document, but initially
       I would ask them just to rule out documents that were
       clearly irrelevant and I would review the balance of
       that, but as things improved they were spotting themes
       within documents, tagging it for my attention, and then
       I would see the tag and would be able to go through
       that, and then each day we would refine that process.
   Q.  Would it be fair to say that the total number of
       documents that you and your team reviewed is larger than
       the total number of documents that you reviewed?
   A.  Yes.
   Q.  I would be right in thinking, wouldn't I, that the
       documents that you refer to in your report are all
       documents that you yourself had reviewed?
   A.  Yes.
   Q.  Could you give me an indication -- the number of
       documents the whole team reviewed was higher than the
       ones you reviewed.  Could you give me an idea of how
       many documents your entire team would have reviewed in
       this process?
   A.  I wouldn't have that number, I'm sorry.
   Q.  If we then go in the same document to {D2/1/83}, please?
   MR JUSTICE FRASER:  Do you want to stay in the first joint
       statement?
   MR DE GARR ROBINSON:  I'm so sorry, I thought I was in JC1.
       It is {D2/1/83}.
           Just looking at paragraph 5.114, you say:
           "Regarding the extent of potential errors within
       Horizon I have analysed 5114 Horizon ... (KELs) to
       determine the scope of potential bugs or 'PEAKs' ...  Of
       these 5114, I have found that 163 contain PEAKs that
       could be of significant interest and of these [67] are
       referred to in the report."
   A.  76.
   Q.  I'm so sorry, 76.  So you personally looked at 5,114
       KELs, did you?
   A.  KELs and PEAKs, is that not?  Sorry, yes.  Yes.
   Q.  So you looked at them, so your team would have looked at
       more?
   A.  They may have looked at the same number but they
       possibly looked at more, yes.
   Q.  On top of those KELs you looked at PEAKs, as well?
   A.  Mm.
   Q.  If we go back to paragraph 1.28 at page {D2/1/20}.  It
       may be you will agree with this without having to look
       at it.  At this stage on 16th October -- it is 1.28 on
       page 20 and you say:
           "Of the [218,000-odd] PEAKs disclosed by POL I have
       in the interest of expediency, used intelligent search
       techniques to initially review those that might
       specifically relate to branch accounts.  I have
       therefore reviewed 1,262 in the limited timeframe
       allowed since disclosure."
           Would I be right in thinking that your team would
       have reviewed a considerable number more than that?
   A.  Yes.
   Q.  Just to be clear, the focus of your search was what?
       Was it branch account problems?
   A.  Yes.
   Q.  Were there any other problems?
   A.  The searches were surrounding discrepancies but, of
       course, a search such as that will come up with lots of
       things that are largely irrelevant.  But yes, branch
       account problems.
   Q.  And would that 1,262 PEAKs you referred to there be on
       top of the 163 PEAKs that you found having regard to the
       5,114 KELs you read?
   A.  Sorry, could you ask that question once more.
   Q.  If you remember back at paragraph 114, I'm asking this
       question in a very maladroit way, you said: I looked at
       5,000-odd KELs and I found that 163 contained PEAKs that
       could be of significant interest?
   A.  Yes.
   Q.  I get the impression therefore that you looked at the
       KELs and then, having regard to the KELs, you then
       looked at the PEAKs referred to in those KELs?
   A.  Yes.
   Q.  And you found 163 that you thought were interesting and
       you refer to 76?
   A.  Yes.
   Q.  The 163, was that part of the 1,262 that you regarded --
       that you found that might specifically relate to branch
       accounts?
   A.  It is likely to be a subset of that.
   Q.  Thank you.
   A.  Because what you find is when you look in a KEL and it
       lists a number of PEAKs, you go to have a look at the
       PEAKs.  Sometimes it is a PEAK of interest but it
       actually doesn't contain any of the words you were
       originally searching for, but once you have read it you
       understand why it is of interest.
   Q.  Yes.  If we move forward three and a half months, so we
       are now at the beginning of February, and you produce
       your second statement which is very long and that's at
       {D2/4.1/16}.  If we could look at that document at
       page 16, please.  You say in paragraph 3.20:
           "I have now reviewed more of these records using
       text search criteria and filtering.  This has enabled me
       to address some issues more thoroughly and has enabled a
       more in-depth analysis in relation to the extent of the
       Horizon Issues and the overall robustness ..."
           So would I be right in thinking that you had looked
       at more KELs?
   A.  Yes.
   Q.  And I think it must be obvious you looked at more PEAKs,
       as well?
   A.  Yes.
   Q.  Had you looked at more other documents as well?
   A.  Yes.
   Q.  Could you give some indication of the sort of other
       documents you were looking at in the intervening time?
   A.  There was a number of OCRs and OCPs but I do not think
       we had the full family of them at this point in time.
       There was a number of the design documents, the process
       documents.  There was a lot of reports about how
       feedback of the support of issues was being fed back to
       Post Office.  There was documents on many themes.
   Q.  How many more KELs -- it may be that you can only
       estimate, it may be impossible to estimate -- do you
       think you had looked at by this time?
   A.  It would be a crazy guess.  I don't know.  I honestly
       don't know.
   Q.  What about PEAKs?  How many more PEAKs do you think you
       had reviewed by this time?  I would suggest it is likely
       you looked at a lot of them but that may be unfair.
   A.  It will be a lot of them.  There wasn't a linear review
       where I sat and started and went next, next, next.  That
       wasn't how it happened.  But after searching for
       a document, deciding it was of interest, and then
       picking out some of the themes and then searching for
       those themes, you might identify conceivably another
       five hundred documents of which you might flick through
       those very, very quickly just to see whether they are of
       any interest, they are in the right date range.
   Q.  Did your team, the four people that's mentioned that we
       have discussed, did they help you at any time during
       this three and a half month period?
   A.  Any members of the team?  Sorry?
   Q.  Did the whole team, all four members, help you at any
       time?
   A.  Running up to Coyne 1, the first report, then it was the
       team members that you see there.  For the second report
       it was just Siobhan Forster.
   Q.  Did she spend a great deal of her time helping you
       during that period?
   A.  Yes.
   Q.  She was doing intelligent searches as well?
   A.  Yes.
   Q.  And she was reviewing PEAKs and other documents as well?
   A.  In order to bring them to my attention.  The process was
       very similar all the way through really.
   Q.  I see.  Would I right in thinking that the focus during
       that period was again PEAKs and KELs and other documents
       indicating problems with branch accounts?
   A.  We were also looking at elements in Dr Worden's report.
       So there will have been searches trying to understand
       more about themes surrounding his opinion.
   Q.  I see.  Have you reviewed further documents since you
       produced your second report on 1st February?
   A.  Yes, I think I'm right to say there has been documents
       that have been disclosed since then.  Yes.
   Q.  Have you -- let's take it in stages, have you reviewed
       more PEAKs since then?
   A.  I think there was a small disclosure of about 1,200
       PEAKs that have been reviewed.
   Q.  What about OCPs and OCRs, have you reviewed a number of
       those?
   A.  Yes.
   Q.  Could you give an estimate of how many you have looked
       at?
   A.  It will be thousands but I don't know what the precise
       number would be.
   Q.  MSCs as well, the three databases of MSCs, you've
       reviewed a number of those as well, haven't you?
   A.  MSCs were a very significant challenge because they were
       disclosed in three separate Excel sheets, none of which
       appeared to marry up with each other, so it was a task
       because there were literally millions of lines of code
       in that.  So I have searched within those documents.
   Q.  The OCPs and the OCRs and the MSCs, what have you
       searched for?  FAD codes, that kind of thing?
   A.  I have searched for the word "FAD", because that might
       indicate that it is describing something for
       a particular branch, but I have not searched for a FAD
       code as such.
   Q.  So you have looked for FAD because that is a reference
       to a branch.  Each branch has its own FAD code, doesn't
       it?
   A.  FAD is an indicator that the document might be to do
       with a branch, but you do have to be very careful with
       that because simply searching for "FAD" returns hundreds
       of documents and you actually find that it is just
       a pro forma document with the word FAD in it and there
       is a space next to it and there's nothing in it.
   Q.  Presumably this is where intelligent searches come in,
       which I would be --
   A.  Absolutely.
   Q.  -- incapable of doing.
   A.  Absolutely.
   Q.  And what other things were you looking for when you went
       through OCPs and OCRs and MSCs?
   A.  We used various searches for "subpostmaster" that would
       indicate that there was potentially dialogue with the
       subpostmaster, to see whether there was any advice given
       to the subpostmaster or what type of information was
       being requested from the subpostmaster.  So all the
       variations of subpostmaster were used as search terms.
   Q.  Thank you, Mr Coyne.  We now have a sense of what you
       looked at when you produced your first report and what
       additional documents you looked at when you produced
       your second report.  We've already spent some time
       talking about your first report but there are some extra
       questions I would like to ask you about it.
           If we could go to {D2/1/26} paragraph 3.7 which is
       at page 26.  You say:
           "With regards to Issue 3, whilst the present-day
       version of Horizon supported by manual human support may
       now be considered as relatively robust in the spectrum
       of computer systems used in businesses today it has
       undergone major modifications in its history.  It is
       likely that in 1999 when it was first commissioned, and
       in 2010 when it was significantly upgraded (to Horizon
       Online), it was less robust."
           So you are saying there that the level of robustness
       may have varied over time?
   A.  Yes.
   Q.  And you are focusing in particular on the early days of
       Legacy Horizon and the early days of Horizon Online?
   A.  Yes.
   Q.  Why do you focus on those periods?
   A.  Because I believe it is an incontrovertible fact that
       there was a larger number of problems after the launch
       of the first version of Horizon and after the upgrade to
       Horizon Online.  Certainly I was in court when shortly
       after the launch of Horizon Online there was talk about
       the red alert or the red care situation, shortly after
       Horizon Online, where it needed some intensive care
       because of problems.
   Q.  Do you mean during the pilot project when only a very
       small number of branches were actually using
       Horizon Online?  Is that what you are referring to?
   A.  Certainly there was problems during that period but it
       was real branches that were being used.  It wasn't
       a testing environment or anything like that.
   Q.  Would I be right in thinking, Mr Coyne, that you have
       chosen the wording of that paragraph quite carefully?
   A.  I would like to think that I choose all of my words
       carefully.
   Q.  Very good.  That's fair.  I note that you are not saying
       here that Horizon was definitely not robust at some
       earlier time.  That's deliberate, isn't it?
   A.  Yes.
   Q.  You are merely saying that it is relatively robust now,
       it may have been less robust at some earlier dates, but
       you are not saying it wasn't relatively robust on those
       earlier dates, are you?
   A.  No, I'm not.  That supports what I have attempted to
       assist the court with all along.  It isn't a binary
       situation that it is either robust or not robust, it is
       a spectrum, and throughout those periods it was less
       robust further to the left of the spectrum.
   Q.  Even during those early periods in 1999/2000 when
       Legacy Horizon was rolled out, and in 2010 when
       Horizon Online was rolled out, would I be right in
       thinking it is not your judgment that it was not
       relatively robust even then?
   A.  I think that is quite a difficult question to answer
       because that would require very specific focus on those
       periods and a very specific benchmarking of the position
       at those two periods which I haven't conducted
       specifically.
   Q.  You say that you have conducted the benchmarking now?
   A.  Yes.
   Q.  Are you suggesting that you haven't conducted any
       benchmarking in relation to any earlier period?
   A.  Certainly I have looked at the number of defects that
       have been in existence and the number of requests to
       support throughout the whole life of Horizon and there
       are peaks -- sorry, that is a bad word.
   Q.  Spikes.
   A.  Spikes after the launch of the Legacy version of Horizon
       and then after the upgrade to Horizon, and I completely
       understand why with any new system and with any major
       upgrade there's going to be an increase in problems.
       That's why I have said during those periods the system
       will have been less robust because there was problems
       being ironed out both in the technology -- the
       programming -- the networking and the support processes.
       All these problems were being ironed out.
   Q.  So outside those periods, how long did those periods
       last?  Are we talking about 1999 to 2000 for
       Legacy Horizon, is that the sort of period you are
       talking about?
   A.  No, I mean the actual period extends, it is a curve that
       slowly drops over the course of the next couple of
       years.  So, again, it is not a binary: it becomes stable
       at some point in time, the faults stop at some point in
       time.
   Q.  So you are suggesting -- you have a graph in mind which
       you are using as a basis for forming this judgment.  Is
       there a graph somewhere that indicates what you are
       talking about?
   A.  There's certainly two images, I think one in my report
       and one in Dr Worden's report, that show -- that have
       correlation of spikes of activity around those two
       areas.
   Q.  Could you tell me where in your report we will find this
       graph?  I'm afraid I'm not in a position to suggest
       a page number.  Do you remember where it is?
   A.  There is one in my first report at -- it is page 193.
   Q.  Thank you.  A graph.  Is this your first report or your
       second report?
   A.  This is my first report.
   Q.  My page 193 is a figure 3.
   MR GREEN:  It is bundle page 206, internal 193.
   MR DE GARR ROBINSON:  I'm looking at the wrong numbering.
   MR JUSTICE FRASER:  Are we looking at your page 193 in the
       top right-hand corner?
   A.  Sorry, my Lord, yes.
   MR GREEN:  Page 193 top right.
   MR DE GARR ROBINSON:  193 at the top and 206 in the bundle
       {D2/1/206}.
           I'm looking at that graph.  What is this a graph of?
   A.  So this is a graph of BIMS.
   Q.  Could you explain what they are?
   A.  They are business impact statements that are made
       between Fujitsu and Post Office.
   Q.  It looks as if the spike had more or less finished by
       about 2011.  So would it be fair to say that if you are
       treating this as evidence of less robustness, from about
       2011 it stabilises, would that be right?
   A.  I think it probably could be argued that it stabilises
       around 2013 but it is the curve that I attempted to
       describe before.
   Q.  So that's the basis upon which you form that judgment
       that it was less robust during these early periods, is
       that right?
   A.  That is one of the graphs that illustrates my opinion,
       yes.
   Q.  Now, if we go back to -- and is there a similar -- have
       you done a similar graph for Legacy Horizon or is there
       nothing?
   A.  I believe Dr Worden has a similar graph that goes back
       to Horizon.
   MR JUSTICE FRASER:  You said there were two, I think, one in
       your report and one in Dr Worden's report.
   A.  Yes.
   MR JUSTICE FRASER:  You think he has got one as well?
   MR DE GARR ROBINSON:  This may be wrong but it may be at
       {D3/1/187}.
   MR JUSTICE FRASER:  Let's have a look.
   MR DE GARR ROBINSON:  There is a table of loss amounts by
       year.  Do you see that?  Is that the one you have in
       mind?
   A.  No, I do not think it is.  I think there is a different
       one.
   MR JUSTICE FRASER:  Is it {D3/1/129}?  I'm just doing this
       to try and help Mr de Garr Robinson, I'm not
       interfering.  Have a look at D3/1/129.
   MR DE GARR ROBINSON:  Is that the bundle reference?
   MR JUSTICE FRASER:  That is the bundle reference.  Could you
       call that up on the common screen, please.  129.
   MR DE GARR ROBINSON:  It is the same graph as at 187.
   MR JUSTICE FRASER:  Oh, is it the same?
   MR GREEN:  I think it is the same.
   MR JUSTICE FRASER:  I won't try and help any more.
   MR GREEN:  It has a different title but it is the same
       thing.
   MR DE GARR ROBINSON:  Do you think you can --
   A.  Yes, if you give me a moment I can go through these
       paper copies.
   Q.  It might be the next page.  If we go to the next page on
       the screen, is that it?  No sorry.
   MR GREEN:  {D3/1/130}.
   MR DE GARR ROBINSON:  Can we look at page 130, please, in
       this document.  {D3/1/130}.  Thank you.  Is that it?
   A.  I think it is that actually, yes, because that
       illustrates the same peak/spike, that illustrates the
       same spike around Horizon.
   Q.  But it doesn't indicate any spike around Legacy Horizon,
       does it?
   A.  Not for KELs, no.
   Q.  I'm wondering, Mr Coyne, whether this judgment is really
       based upon your experience, that your experience of when
       you roll out a new system you are going to have teething
       problems and then, once it is rolled out, the position
       stabilises.  Is that really what your judgment is based
       on?
   A.  Part of my judgment is based on my experience but it is
       certainly the case, and we might not have a graph for
       this, but when you look at the number of PEAKs over the
       period, there is a spike in the PEAKs at the start of
       Horizon.
   Q.  So just to backtrack slightly.  What you are saying is
       Horizon is robust, relatively robust now.  Do you accept
       that it has been robust for a significant period or
       would you not be prepared to say that?
   A.  It has been relatively robust apart from the early years
       of the two launches, Horizon Legacy and Horizon Online.
   Q.  So both Horizon Online and Legacy Horizon have been
       robust for most of their lives but there were initial
       periods where they were less robust?
   A.  Yes.
   Q.  In relation to those initial periods -- and do correct
       me if I'm wrong -- you are not saying they definitely
       weren't robust during that period, you are simply saying
       they were materially less robust, is that right?
   A.  Yes.
   Q.  Thank you.  That's very clear.
           Let's go back to section 3 of your first report.  If
       we can go to {D2/1/26}, paragraph 3.10.  Perhaps I don't
       need to ask you about that in the light of what you have
       just told me.  Instead what I would like to do is to go
       to page {D2/1/77} of the same document, please.  You
       will recall that I suggested to you that there was
       a danger of forming an impression from your first report
       that although you clearly state that Horizon is
       relatively robust, you don't say anything good about it.
       What you tend to do is to say bad things about it.
       I suggested to you that was because you were knowingly
       giving a poor impression of Horizon.  Would that be fair
       or would that be unfair?
   A.  That would be unfair.
   Q.  Why didn't you then say more about the good aspects of
       Horizon that led you to the conclusion that it was
       relatively robust?
   A.  Because this -- because the question of robustness was
       in the context of would that robustness prevent or
       reduce the risk of bugs, errors and defects causing
       discrepancies.  So the many good things about Horizon,
       and I suppose if you are going to start talking about
       good things, how far do you go?  I don't know where you
       stop with them.  This, as I understand it, is about
       whether any of the failures that have occurred within
       Horizon have led to defects or discrepancies.
   Q.  But in the first joint statement you indicated that you
       were going to adopt a balanced approach.  I fully
       understand why you are looking at problems, and problems
       which were relevant to branch account impact.  I'm not
       suggesting you shouldn't have done that.  But if you are
       engaging in a properly balanced approach you have to
       explain the good things with as much care and clarity as
       you explain the bad things.  And what I would like to
       suggest to you, Mr Coyne, is that you devoted much more
       attention to talking about the bad things than you ever
       did talking about the good things?
   A.  Yes, I will accept that is fair.
   Q.  And why did you do that?
   A.  Because my understanding of the instruction is to try
       and identify the risks that are associated with bugs,
       errors and defects, and there are many other issues, but
       if they had an impact or could have had an impact on
       branch account.
   Q.  But --
   A.  Sorry.  So in order to do that you have to focus on what
       actually happened, is my understanding, and then from
       understanding what has actually happened understand what
       the impact of it is.
           Talking about all the nice things in Horizon that
       happen in the high 90% of the time I don't believe
       delivers any real value to my instructions.
   Q.  But in deciding whether or not a problem that arose in
       Horizon actually had a branch impact, one of the things
       that you have to consider is whether the countermeasures
       that surround the Horizon system operate effectively or
       not?
   A.  I absolutely agree with that --
   Q.  And you accept that, don't you?  You accept that it is
       relevant to the judgment of robustness as to how good
       the countermeasures were?
   A.  Yes.  But the way to do that is to identify the fault in
       the first place and then have a look at the
       countermeasures, whether they were positioned correctly,
       whether they worked or not.
   Q.  Can I suggest to you, Mr Coyne, that that's not what you
       did in your first report at all.  Most of your first
       report was devoted to problems that actually didn't
       relate to branch impacts at all, and when you did talk
       about problems that related to branch impacts you didn't
       consider whether the full panoply of countermeasures
       would have corrected or reacted to or identified the
       branch impacts you were talking about?
   A.  That could well be to do with not having all of the
       documents that was requested at the time.
   Q.  Well, you didn't do it in your second report either, did
       you?  You did the same thing.  It was more of the same
       in your second report, wasn't it?
   A.  I don't believe that's the case, no.
   Q.  So you are suggesting in your second report you did
       consider how good the support process was and you did
       consider, where you had identified a bug that may have
       a branch impact, you did consider the extent to which it
       was likely that that impact would have been identified
       and sorted out?
   A.  I spend a large amount of the second report addressing
       specifically the countermeasures that Dr Worden raises,
       paragraph by paragraph.
   Q.  And your overall view of those countermeasures, bearing
       in mind that your judgment now is that Horizon is
       relatively robust, yes?
   A.  Mm.
   Q.  Your overall view of those countermeasures is that they
       are relatively good, yes?
   A.  I think it is a danger looking at them in the overall
       because there is a number of them that I don't believe
       are good.  But broadly, if the countermeasure is
       positioned correctly, in the vast majority of occasions
       they should work.
   Q.  What I would like to suggest to you, Mr Coyne, is that
       it follows from your overall judgment that Horizon is
       relatively robust now.  It follows that overall your
       assessment of the countermeasures that Dr Worden has
       identified is also that they are relatively good.  Would
       that be fair?
   A.  Yes.  Each of the countermeasures that Dr Worden has
       suggested are in place and at some point in time have
       been in place within Horizon.  We don't know when they
       were in place within Horizon on a number of occasions
       but they have been in place.
   Q.  Please answer my question, and let me be clearer about
       it because it is quite important.  What I'm suggesting
       to you is that it is part and parcel of your judgment,
       your overall judgment that Horizon is relatively robust,
       that the countermeasures operating together, the
       countermeasures that are in operation in relation to
       Horizon, that they are relatively good as well.  It is
       not your view that operating together, taken as a whole,
       the countermeasures are of poor quality or that there's
       anything wrong with them, is it?
   A.  No, it is not.
   Q.  I'm grateful for that frank answer.  It is fair to say,
       isn't it, that your overall judgment is that the
       countermeasures together, there may be individual
       instances where you are not so sure, but overall your
       judgment is that those countermeasures work well in
       Horizon?
   A.  Yes, but you can't disregard the fact that the system
       has changed throughout the last --
   Q.  Just --
   A.  Sorry --
   MR JUSTICE FRASER:  Hold on a second, I would like to hear
       the answer, and then you can either re-put the question
       or follow on.
           Go on, Mr Coyne.
   A.  We can't disregard the fact that the system has changed
       over the course of the last 20 years and whatever the
       countermeasures may be today, they will likely be
       different in Horizon Legacy, different countermeasures,
       possibly the same aspiration to catch defects at certain
       point in time, but they will be different, they will be
       constructed differently and they will be positioned
       differently.  So we can't --
   MR JUSTICE FRASER:  Mr Coyne, just pause there.  All right.
       Mr de Garr Robinson is going to re-put his question if
       he wants to.
   MR DE GARR ROBINSON:  I am.  I'm talking about the period of
       time relating to the current configuration of Horizon
       and going back in time until the point in time after the
       initial teething problems were resolved.  You understand
       what I mean?
   A.  All the way back to --
   MR JUSTICE FRASER:  Can we use years?
   MR DE GARR ROBINSON:  Let's go back to 2012 for the sake of
       argument to make it safe, because I think that is a year
       you suggested.  So from 2012 to 2019 your view is that
       Horizon is and has been relatively robust, correct?
   A.  Yes, I would say that, but I would be very clear that
       robust does not mean that it hasn't suffered
       significant --
   Q.  Everybody is agreed that robustness doesn't mean
       perfect.
   A.  That's fine then, yes.
   Q.  Which is the point you are trying to make, is that
       right?
   A.  Yes.
   MR JUSTICE FRASER:  What word were you going to add after
       "significant", just out of interest?
   A.  Defects that have continued throughout the period.
   MR DE GARR ROBINSON:  So during that period, 2012 to 2019,
       your judgment is, and you feel capable of making the
       judgment, that Horizon is and has been relatively
       robust, correct?
   A.  Yes.
   Q.  Now that judgment includes a judgment not only about the
       electronic systems and so on, it includes a judgment
       about everything including the countermeasure processes
       surrounding Horizon, correct?
   A.  Yes.  There has to be a number of caveats about that and
       I explained before that I don't really know what happens
       within Post Office to correct defects if Fujitsu has
       spotted them.  So I can't comment really on what that
       process would be.
   Q.  But in relation to the -- nonetheless you have
       sufficient information to allow you to form an overall
       judgment as to robustness and your judgment is that
       during that period the system itself and the
       countermeasures around it were relatively robust?
   A.  Yes.
   Q.  The reason why I ask you that -- and just to be clear,
       the same is true of the period Legacy Horizon, shall we
       say from 2001 to 2010, would that be a fair period?
   A.  Yes.  Perhaps one year after that.
   Q.  Okay, 2002 to 2010.  During that period your view is
       that Horizon was relatively robust?
   A.  Yes.
   Q.  And that included the countermeasures surrounding it and
       supporting it?
   A.  Yes.
   Q.  My question to you, Mr Coyne, and we will be coming to
       countermeasures later, but it is quite a striking fact
       that if you read the section of your report that
       addresses countermeasures, your second report, it goes
       over dozens and dozens and dozens of pages in your
       section 5 -- and as I say, we will come to it -- there
       is no hint of your judgment that overall the
       countermeasures during those periods have operated --
       have been relatively good.  Why is that?
   A.  I don't know.  It certainly wasn't a conscious decision
       to leave anything out, and --
   Q.  Could I suggest to you -- I'm sorry, I'm interrupting
       you.
   A.  Sorry.  And because I have found bugs, errors and
       defects throughout that period, that is an illustration
       that however good the countermeasures were, that they
       were overcome at various points.
   Q.  We will come to that, I will be asking you quite a few
       questions about whether the countermeasures were
       overcome by the bugs that you have identified.  But my
       question to you, Mr Coyne, remains that you are quite
       happy to go on at great length about how much you
       disagree with Dr Worden and about all the problems you
       found in relation to countermeasures.  Nowhere do you
       actually say what you have very fairly said to me in the
       last half hour, namely that the countermeasures actually
       during those long periods of time have worked quite
       well.  Why would you not say that given that you want to
       give a balanced view?
   A.  I believe the view that I have given in the reports is
       balanced --
   Q.  Where -- I'm so sorry, I'm speaking too quickly.  Please
       carry on.
   A.  I don't see that utilising many pages of text to talk
       about the various aspects of Horizon's countermeasures,
       which may well be similar to how Dr Worden set them out,
       they may well operate in much different ways, we don't
       really know, but we can observe that they are likely to
       operate in those ways.  I do not see there is a great
       deal of value when it is a fact, and what I believe the
       court was asking in the Horizon Issues was to address if
       it is possible that they have failed.  So it is the
       failure side of it.
   Q.  I see.  So you regarded it to be your job to indicate to
       the court whether there were occasions on which Horizon
       had failed.  That was the essential endeavour that you
       were engaged in when addressing Horizon Issues 1, 3, 4
       and 6, was it?
   A.  I believe that a number of those Horizon Issues ask that
       specifically.
   Q.  Didn't those issues ask specifically how likely -- what
       was the extent of the likelihood of problems occurring
       in Horizon so as to cause problems in --
   A.  Yes --
   Q.  -- branch accounts?
   A.  Yes, that is right, but that doesn't ask for me to point
       out a list of all the possible countermeasures.
   Q.  But isn't it relevant to the judgment as to overall
       likelihood how well the countermeasures work?  I mean
       Dr Worden recognised that was the position, that's why
       he spent so many pages of his report explaining the
       architecture of Horizon, explaining how the systems
       worked and explaining how they operated in relation to
       each other.  Then in your response, in your second
       report, what you did -- what I suggest that you did is
       you sat in your armchair and took pot shots at various
       points that he made without giving any sense as to
       an overall judgment as to whether he was right or not
       that the countermeasures did work relatively well?
   A.  No, I don't believe I did that.  What I did was I looked
       at the entire landscape of Horizon's operation,
       identified the percentages were -- there were weaknesses
       within the process, and then focused on that
       specifically to find out whether there had actually been
       any bugs, errors and defects, and then looked at why the
       countermeasures or controls may or may not have worked
       after that bug, error or defect had triggered.  Because
       the key is how the system operates when it doesn't
       operate properly, not how to operates when it does
       operate properly.
   Q.  I have been side-tracked, I have allowed myself to be
       side-tracked.
           We were going to look at page {D2/1/77} of your
       first report and I'm about to ask you a question about a
       paragraph on this page.  The starting point of the
       question is that you agreed with me that your judgment
       is that Horizon, both Horizon Online and indeed
       Legacy Horizon, for much of its life has been relatively
       robust?
   A.  Mm.
   Q.  If we go to paragraph 5.88, you say:
           "In my position as an expert I am unable to estimate
       the level of the Horizon system's robustness.  Given the
       size and age of Horizon, I would however make the expert
       assumption (based upon systems of similar magnitude),
       that there are not many people who could. The sheer
       enormity of the task to garner a thorough understanding
       of the code which would be required to estimate
       robustness is, in my opinion, nearly impossible."
           So here you seem to be saying that it is actually
       not possible to assess whether Horizon is robust or not?
   A.  No, to come up with a number.  When I say the level, I'm
       talking about a particular number or a percentage or
       a ... (Pause)
   Q.  So what you are suggesting is that you don't have -- in
       order to make an absolute judgment, to give an absolute
       number of robustness, you would need to look at all the
       code and look at everything else, is that right?
   A.  Yes, because there may well be a defect in the code on
       one day which has a problem that eludes countermeasures,
       and that code may then be fixed so it is in a different
       position on day one than it is on day two.
   Q.  And you are saying that kind of enquiry is necessary in
       order to make an absolute judgment of robustness?
   A.  In order to make an absolute judgment, yes.
   Q.  But it is not required in order to make a relative
       judgment of robustness?
   A.  Yes.
   Q.  I would like you to explain why that would be the case.
       Why would it not also be needed for a relative judgment
       to be made, to benchmark against industry standards?
   A.  Because with a relative judgment you are considering all
       factors in the round and it is still very subjective but
       it is across multiple different factors that are
       improving or getting worse.
   Q.  I understand you when you suggest that to make
       a judgment about robustness involves an overall
       assessment.  That I understand.  But my question to you
       is why is it necessary to look at the code and look at
       absolutely everything to engage in an impossible task to
       make an absolute assessment of robustness, when it is
       not necessary to do that in order to make a relative
       assessment of robustness?  I would just like you to
       explain that if you could.
   A.  There is a number of different ways of assessing
       robustness.  By looking at the code at any one point in
       time you could establish whether there are any bugs,
       errors or defects in there.  It would be a near
       impossible task but it could be done depending on how
       big the code base could be.
   Q.  How would it be possible?  Just as testing is never
       perfect.  You have a set of code and you are about to
       release it into live operation but you have to test it
       first, you can test it as many ways as you can but you
       are never going to spot every problem in it.
   A.  No, but --
   Q.  Are you suggesting that for the purposes of determining
       whether a code is robust you could look at the code and
       perform that judgment?
   A.  Yes, you certainly could look at the code and perform
       that judgment because what you can do, and this has
       often happened in the aircraft industry, they have
       multiple different operating systems that control
       different devices.  So if there is a catastrophic
       failure of one piece of code another piece of code will
       take over.
           So if by looking at the code you can establish that
       is in there, then you can give a view of that being
       completely robust, because if it fails in its entirety
       there is another solution that can take over.  So that
       is how I can illustrate the code example.
   Q.  This is the last question I will ask and then I will
       move on.  If you are forming a judgment as to the
       robustness of a system, don't you need to have regard to
       the way it operated in operation?
   A.  Yes.
   Q.  Isn't that what you should be looking at, not millions
       of lines of machine code?  You are looking at how it
       operates in practice, looking at how the countermeasure
       operates and forming an overall judgment as to the
       efficiency of the operation, aren't you?
   A.  That could be one part of it, yes.
   Q.  Wouldn't that be sufficient?  Wouldn't be all you needed
       to do?
   A.  No, because you will almost certainly be able to
       identify a scenario where somebody or many people will
       operate the system, the Horizon system, throughout
       a year, or possibly even throughout the entire life
       cycle of Horizon, and will never experience one problem
       at all because they will not trigger the unusual
       circumstances that unearths a bug.  So if you went and
       studied that one person you would ultimately conclude
       the system is absolutely robust.  I have watched this
       person do 10,000 transactions per year for ten years and
       it has never had a problem.
   Q.  What I'm attempting to explore with you, Mr Coyne, is
       your attempt to explain why it is that on the one hand
       you have reached your judgment that Horizon is
       relatively robust, but on the other hand you can't form
       a judgment on the level of robustness without looking at
       all the code.  You have suggested that it is to be
       explained because one is a relative judgment whereas the
       other one is an absolute judgment.  And I'm asking you,
       if it is necessary to look at the code in order to make
       a decision about robustness, why isn't it equally
       necessary to look at the code when making a judgment
       about relative robustness?  And I don't understand why
       the distinction between relative and absolute robustness
       should make the slightest difference.
   A.  Because we can look at the rest of the industry in
       either banking or point of sale or stock control or all
       the different factors that make up Horizon and look at
       the types of defects that are seen in those industries
       and that are tolerated in those industries and the
       impact of those failures within those industries and it
       is through that lens that I have said that Horizon is
       robust relative to those other industries.
   Q.  Well, could I suggest to you, Mr Coyne, what you are
       doing in your first report, in indicating that Horizon
       is robust then suggesting that it isn't, then suggesting
       it is impossible to tell that it is robust, what you are
       trying to do is to devalue the judgment that you have
       very fairly and very honestly made that Horizon is
       robust.  What you are trying to do in your report is to
       give a negative impression, which is not balanced but is
       designed to achieve a conclusion?
   A.  That's certainly what I was not trying to do, no.
   MR DE GARR ROBINSON:  Very well.
           My Lord, is this a convenient moment?
   MR JUSTICE FRASER:  If it is convenient to you.  Is it?
   MR DE GARR ROBINSON:  Yes.
   MR JUSTICE FRASER:  You are moving on to a new subject,
       right.
           We are going to have a short 10-minute break.  The
       usual rules apply.  3.20 pm.
   (3.12 pm)
                         (A short break)
   (3.24 pm)
   MR DE GARR ROBINSON:  Mr Coyne, before the break I was
       suggesting to you that in your first report you were
       seeking to give a negative impression about Horizon that
       was not consistent with your genuine view that Horizon
       was relatively robust and you have answered those
       questions.
           But I'm now going to explore another aspect of that
       which is that in your report you display more interest
       in pointing out the problems you found with Horizon than
       with actually giving a fair assessment of the overall
       position of Horizon and my questions for the rest of
       this afternoon will be looking at that question.
           I don't have time to take you to more than a few
       examples which is unfortunate because there are so many
       of them in your report.  And that is a problem that
       arises in cases of this sort.  The documents you refer
       to in your report, in fact both your reports, are often
       long and involved with substantial complexities.
           Do you accept that where an expert is referring to
       a great number of documents of this sort which are all
       being presented as supporting a view, giving
       an impression of a certain state of affairs, it is
       incumbent on the expert to ensure that he or she deals
       with the document scrupulously fairly so as to avoid
       giving any risk of a false impression?
   A.  Yes.
   Q.  Counsel won't have time to cross-examine the expert on
       all of them, and the judge certainly won't have time to
       go through all of them with a fine-tooth comb in his or
       her own chambers afterwards, will they?  So a judge is
       relying on the expert to discharge their duty to ensure
       that a fair view is being given of any document being
       referred to.
   A.  Yes.
   Q.  Now, do you think you have done that in your reports?
   A.  Yes.
   Q.  The documents you've referred to in your reports, and
       there are a great number of them, have you considered
       them all carefully yourself before explaining the
       inferences you draw from them or the constructions you
       put upon them?
   A.  That was certainly my aim in including the documents in
       the report, yes.
   Q.  Well, let's deal with a few examples.  As I say, I can
       only deal with a few.  First of all, cost benefit
       analysis.  This is a theme of both your reports, that
       bugs in Horizon are diagnosed and fixed on a cost
       benefit basis.  Is that right?
   A.  There is certainly reference within the documents about
       looking at bugs and fixing them on a cost benefit basis.
   Q.  There is a claim made in both your reports that where
       bugs that are known to cause shortfalls, those bugs will
       not be diagnosed and fixed on a cost benefit basis by
       Fujitsu, essentially?
   A.  Yes, and I think that that was one of the agreements
       that Dr Worden and I arrived at in one of our joint
       statements.
   Q.  We will talk about the joint statements in a moment.
       I am sure you will agree that it is inevitable that
       every business will take some decisions on a cost
       benefit basis?
   A.  Yes, that is true.  It must be considered here that
       there is a different dynamic here between the user of
       the system and the people who fix the defects.  In
       an organisation they may have their own internal
       programmers and therefore they may not fix things on
       a cost benefit analysis basis.  If you have
       a development team that's not your own resources but you
       are paying for those resources then there could be
       a different dynamic at play there.
   Q.  The point you are making you are applying to the fixing
       of bugs in Horizon.  You are saying, correct me if I'm
       wrong, that the support process provided by the SSC
       allowed relevant bugs to remain in the system in order
       to save money?
   A.  Yes, and there is certainly a reference within
       a document to that view being taken.
   Q.  Let's see how you develop the point.  If we could go to
       your first report {D2/1/27}, please.  This is
       paragraph 3.15:
           "There are a range of measures and controls existing
       in Horizon each designed to prevent, detect, identify,
       report and reduce the risk of several multifaceted
       errors.  It is likely that during the life of Horizon
       system that these measures and controls improved. It is
       also reasonably likely that in the majority of cases the
       measures and controls were successful."
           Stopping there, Mr Coyne, I need to correct
       something I put to you before the break.
           I put to you that there wasn't a hint of anything
       positive said about countermeasures in your report.
       That's not fair.  There are in the report a number of
       occasions -- a number of sentences of this sort which
       could be said to be positive statements.  What I would
       suggest to you, however, is that that sentence is
       a dramatic understatement of the positive view that you
       have of the Horizon countermeasures?
   A.  I don't believe that's the case.  It is correct there is
       a range of measures and I explain what they are designed
       for.
   Q.  In the majority of cases.  Your view is that it is only
       in a fraction of a percentage of cases that these things
       don't work, isn't that right?  Isn't that what you said
       to me this morning?
   A.  I said it would be a fraction, yes.
   Q.  A fraction of a percentage.
   A.  Yes, it is likely a fraction of a percentage.
   Q.  Very good.
   A.  But I do actually say there it is likely that during the
       life of Horizon the measures and controls improved and
       that in the majority of the cases the controls were
       successful.
   Q.  Let's move on to the next sentence, Mr Coyne, because
       having said that positive thing, which as I have
       suggested to you is a dramatic understatement of your
       actual view, you then immediately try to undermine even
       that view because you then say:
           "However, there is also evidence to indicate that a
       cost/benefit analysis was applied to the fixing of
       bugs/errors/defects and that the possibility of error
       was not reduced as far as possible."
           So you're saying, well, countermeasures are applied
       in -- are likely to apply most of the time, but there is
       this problem.  And you are suggesting there is a problem
       in the support process because the support process --
       that's Fujitsu, the SSC -- appears only to have fixed
       bugs on the basis of a cost benefit analysis.
           You do see that that's what you are trying to do.
       You are trying to weaken your positive statement in the
       previous statement even further by relying on this cost
       benefit and basis claim, is that right?
   A.  No, I'm trying to provide the full picture and context.
   Q.  By your use of the word "However", you are setting this
       up as undermining even the limited positive statement
       that you make in the previous sentence, aren't you?
   A.  No, I'm setting out that after making that statement you
       have to consider what follows.
   Q.  You repeat this point in the third joint statement and
       you refer to it half a dozen times in your second
       report, don't you?
   A.  I do, but it is important because the question that was
       asked was: was it reduced as far as possible?
   Q.  I'm sorry, where is that asked?
   A.  It is one of the Horizon Issues.
   Q.  I see.
   A.  So when you consider "as far as possible", cost benefit
       shouldn't really be involved in that consideration.  It
       should be whatever is possible.
   Q.  Let me carry on with this line.  What I understand you
       to be saying here is that there is evidence that bugs
       which had or may have had a non-transient effect on
       branch accounts were sometimes not resolved on the
       grounds that the costs to Fujitsu or the Post Office
       outweighed the benefit to the subpostmasters.  Is that
       the claim you are making?
   A.  Yes, that's certainly what I have got from one of the --
       there's certainly a document, I am sure I make
       a reference to it, where there is a number of bugs or at
       least one bug that's considered.  The impact of that is
       that it very rarely occurs and therefore it is not worth
       investing the money in fixing it.
   Q.  Let's see how you do support it in your first report,
       shall we?  If we go to page {D2/1/97} at paragraph
       5.161, you say:
           "Whilst both Horizon and Horizon Online contain
       a number of measures and controls designed to check
       system integrity, these mechanisms have been shown to
       have failed.  This is a point agreed upon in the joint
       statement.  It has been identified that known
       issues/bugs were often deferred and dealt with on a
       cost/benefit basis."
           Here you have actually increased the scope and, if
       I may say so, ambition of the claim.  You are now saying
       it happened "often".  Is that your considered view of
       the documents you have seen?
   A.  Could I just turn back, please, to the paragraph before?
   Q.  Of course.  {D2/1/97}
           (Pause)
   A.  It might be unfair for me to say "often".
   Q.  I'm going to come to whether it is unfair, Mr Coyne, but
       first of all I'm going to ask you to analyse the
       evidence that you rely on in support of the claim.
       Because it is fair to say you are not saying it happened
       once or twice over 20 years, you are saying it said it
       happened "often", and over a 20-year period "often"
       would usually mean dozens if not, in the context of
       Horizon, hundreds of times.  Would you agree with that?
   A.  No, I would take "often" to be ten or 15 times.
   Q.  So ten or 15 times over 20 years, you think it is fair
       to describe that as "often", without bearing in mind the
       context of a system which has undertaken something like
       49 billion transactions during that period.  10 or 15
       times as opposed to 49 billion transactions?
   A.  But this doesn't relate to the number of transactions,
       does it?  It relates to changes to the system.  I do not
       think the two correlate.
   Q.  Is it your claim then that your understanding of the
       documents you have read is that there have been 10 or 15
       occasions when a decision has been made not to fix a bug
       on a cost benefit basis.  Is that your understanding of
       the evidence you have seen?
   A.  There are certainly a number of them.  It might be
       incorrect of me to say "often".  There are certainly
       a number of them.
   Q.  Well, I'm going to suggest to you, just so you
       understand where I'm coming from, Mr Coyne, that the
       evidence gets nowhere near anything like that and that
       if you didn't know it, you certainly ought to have done.
       So you can expect some questions from me about that.
           You repeat the claim in paragraph 5.199 at page
       {D2/1/108} where you say:
           "Whilst both Horizon and Horizon Online contain many
       measures and controls for ensuring system integrity,
       these mechanisms do/have failed.  It has been identified
       that known issues/bugs were often deferred and dealt
       with on a cost/benefit basis."
           So you repeat the word "often".  This is a theme of
       both your reports, isn't it, that this is something that
       happened on a regular basis?
   A.  It is certainly something that has happened and I have
       noted on a number of occasions.
   Q.  If we go to page {D2/1/98}, in support of the claim
       that's made in 5.161 you give one piece of evidence and
       that's a risk and compliance meeting minute of
       18th September 2013.
   A.  Mm.
   Q.  Let's look at the minutes.  The bundle reference is
       {F/11/40}.
           (Pause)
   MR JUSTICE FRASER:  Sorry, it is {F/1140/1}.
           While the operator is doing that, I think this is
       one of them that was subject to the review.  But it
       doesn't matter, this isn't a specific point on that.
       But insofar as you review documents and produce versions
       less redacted, can someone just make sure that the more
       up to date version goes on the database rather than the
       original one?
   MR DE GARR ROBINSON:  My Lord, yes.  All the lesser redacted
       versions I think are certainly in the trial bundles.
       I stand to be corrected if that's not right.  I don't
       believe this is one of them --
   MR JUSTICE FRASER:  This might not be one of them.
   MR DE GARR ROBINSON:  -- in any event.
           You will see, Mr Coyne, this is dated
       18th September 2013, it is the Post Office Risk &
       Compliance Committee.
   A.  Mm.
   Q.  And what you rely on is at page {F/1140/3}.  So this is
       what you are relying on in support of your contention
       that bugs were fixed -- often fixed on a cost benefit
       basis:
           "Discussion:
           "It was reported that following the recent
       Ernst & Young external audit four risks been identified.
       Three of the risks raised had been addressed however the
       final risk, relating to the communication by Fujitsu of
       changes made to the Horizon system, was still
       outstanding.
           "It was identified that it would cost over
       £1 million to implement the mitigation being suggested
       by the audit and that this was not proportionate to the
       risk being managed."
           So certainly an example of a cost benefit analysis
       being applied.
           "Decisions.
           "The Committee agreed that the risk be accepted with
       Dave Hulbert as the owner and Lesley Sewell being
       ultimately responsible."
           So that's the evidence you rely on for your
       proposition.
   A.  That --
   Q.  And as you say in paragraph 5.161, Ernst & Young had
       identified four risks.  Three have been addressed but
       the final would cost over £1 million to mitigate.
           If we look at the risk itself, that is in
       {F/1127/1}.  This is a paper for the Risk & Compliance
       Committee, and if we look at the background,
       paragraph 2:
           "2.1  The 2012/13 Ernst & Young IT audit found no
       significant exceptions but did identify a small number
       of improvement opportunities.  Four high level
       improvement opportunities were recorded.  Three have
       progressed and are either complete or in the process of
       completing.  For one, IT&C believe we have sufficient
       process and mitigation in place to accept this risk.
       This paper is to highlight this decision to the Risk &
       Compliance Committee."
           The next paragraph reads:
           "2.2.  The specific observation was with regard to
       Change Management Monitoring control.  The actual
       observation read 'Management should make use of a system
       generated list of changes in performing the monitoring
       control to further enhance its effectiveness'.
           "2.3  The risk being that changes may be made to the
       system that are not approved and not found through
       monitoring."
   A.  Yes.
   Q.  So what's being said here is there needs to be
       a change -- or what's being suggested is that it would
       be an improvement to the system if the change controls
       applied within Post Office were made automatic so that
       every time a change was being made to the system, this
       would be automatically notified, electronically notified
       to Post Office that it was happening.  Do you see?
   A.  This is a very important aspect.  So what this is saying
       here is the current situation is that Fujitsu will make
       a change to the Horizon system and it is not clear
       whether Post Office will have either approved that
       change or will be aware that that change has been made.
       There is a weakness in the process that needs to be
       addressed.
           Now, on the basis --
   Q.  Wait, can I stop you there for a moment.  Are you
       suggesting Ernst & Young were saying there was
       a weakness in the system that had to be addressed?
   A.  They are saying there needs to be a change to the -- a
       change to the management monitoring control.
   Q.  Look back at paragraph 2.1, Mr Coyne:
           "The 2012/13 Ernst & Young audit found no
       significant exceptions but did identify a small number
       of improvement opportunities."
           Even looking at this document you can see that the
       characterisation you have just adopted is simply not
       right.  These are improvement opportunities.  These are
       not problems that need to be addressed, are they?
   A.  From the text that's being said there about the changes
       that need to be made then they are important.
   Q.  That's your judgment, is it?
   A.  Yes.
   Q.  It is not said anywhere that I have seen.  Have you seen
       it said somewhere in one of the documents?
   A.  I believe that there is more of an Excel spreadsheet
       type layout to this document because this is the minutes
       of the meeting that reviews the observations from
       Ernst & Young.  There is another Excel spreadsheet where
       I think Ernst & Young provide their output.
   Q.  I see.  So you are suggesting there is an Ernst & Young
       document which doesn't suggest that this is
       an improvement opportunity, it actually suggests it is
       a real problem that needs to be addressed, is that your
       contention?
   A.  Yes, I believe it sets out --
   Q.  Very good.
   A.  Sorry, I believe it sets out more context than what is
       included here.
   Q.  When you wrote paragraph 5.161 you had read this
       document, had you?
   A.  Yes.
   Q.  If we look at paragraph 3, I think you suggested before
       that Post Office didn't know what changes were being
       made and that's why it is so important.  Is that your
       logic?
   A.  Yes.  What this is saying here is that there is a risk
       that changes are made without being adequately informed
       to the Post Office.
   Q.  We see the existing system described in paragraph 3:
           "The Post Office Service Management team currently
       monitor IT system changes on a monthly basis by cross
       referencing known and approved changes against a list
       produced by Fujitsu.  E&Y observed that this could be
       enhanced ..."
           "Enhanced", not this is a serious problem that needs
       to be remedied, they use the word "enhanced".
           "... if the list was generated by the IT system
       rather than by change records."
           It is a relatively modest enhancement, isn't it,
       wouldn't you agree?
   A.  I believe this is pointed out because there is the
       possibility that the change records, which are a human
       created document, may not have been completed adequately
       and it would be better to have it flagged up that if the
       system changes, an automated message goes to the
       Post Office that the system has changed rather than rely
       upon a paper system.
   Q.  We can all agree it would be better Mr Coyne.
   A.  Yes.
   Q.  The question is how serious the problem is that the
       existing monitoring system is being applied.
           If you look at the next paragraph:
           "IT service management engaged with Fujitsu to
       understand how this could be achieved and it was
       concluded a very difficult and potentially expensive
       approach to adopt this as all changes are recorded as
       'events' within the IT system of which there are
       multiple thousands per day with changes only being a
       small percentage. The cost and difficulty in extracting
       these specific change events on a regular basis would
       outweigh the value in monitoring the change."
           Do you see that?
   A.  Yes.
   Q.  One can see why someone might form that judgment, yes?
   A.  Yes, but if you break that down so that there are
       multiple thousand a day, but the changes are only
       a small percentage, so a small percentage of multiple
       thousands is still quite a big number and that's changes
       made to Horizon every day.
   Q.  Mr Coyne, you do seem to be deviating from the path that
       I'm asking you questions about.  We are not talking
       about how many changes there were.  We are simply
       talking about how they are monitored and the existing
       system is a human system for monitoring those changes
       and what's being suggested is that it should become
       an automatic system?
   A.  Yes.
   Q.  Then if we go over the page to {F/1127/2} the proposal
       in paragraph 5 is:
           "To continue with the existing process of monitoring
       but to additionally raise this as a risk within IT&C and
       to monitor any exceptions found through the existing
       process. If exceptions are found then re-consider the
       proposal from E&Y and assess the impact of the change
       versus the benefit."
           So a weighing up exercise is taking place and the
       conclusion for the time being is: keep things as they
       are but be aware of this potential improvement and
       monitor in the meantime to see whether in fact it would
       be a good idea to make it.
   A.  Yes.
   Q.  That's an entirely reasonable approach wouldn't you
       agree?
   A.  Well, the approach is broadly saying let's carry on
       doing what we do now and just look at it again in the
       future.
   Q.  No.  They are suggesting, first of all, carry on as we
       are doing now which is a monitoring system.  We have
       a monitoring system; a suggestion is being made as to
       how to improve it, but as well as carrying on with the
       system, monitor the monitoring system to see if any
       problems arise, if there are any exceptions and if there
       are, then go back to the proposal of automatic
       monitoring.
   A.  That is what it says.
   Q.  It is not possible for you sitting in your chair over
       there to say that that was necessarily the wrong
       decision, is it?
   A.  No, that's true.
   Q.  It is the kind of thing that a business would quite
       sensibly want to do.  They would like to assess whether
       there is a problem or not before they spend such a vast
       amount of money.  You can't say that's intrinsically
       unreasonable, can you?
   A.  No, it is not intrinsically unreasonable but it leaves
       exposed a risk that could be dealt with but hasn't been
       dealt with because of a cost benefit basis and that was
       the observation that I made.
   Q.  But there is a much more important point, Mr Coyne,
       which is that this has nothing to do with fixing bugs in
       Horizon, does it?
   A.  Yes, it goes directly to fixing bugs in Horizon because
       the changes that they are talking about making are
       changes to Horizon.
   Q.  Mr Coyne, let me remind you of the sentence that you say
       this document supports that's contained in
       paragraph 5.161 of your expert report:
           "It has been identified that known issues/bugs were
       often deferred and dealt with on a cost benefit basis."
           This proposal here and the decision that was made
       from this proposal is not evidence of any known issue or
       bug being deferred and dealt with in a cost benefit
       basis, is it?
   A.  No.  This isn't to do with the deferment of a bug, no.
   MR JUSTICE FRASER:  Mr De Garr Robinson, there is another
       document that goes with this one and I'm slightly
       concerned you might be putting some of your questions on
       an incorrect basis.  So just pause there one second.
           If you could look at please -- and I don't want this
       to go on the common screen -- {F/869/30}.
           I don't want to set a hare running but I just feel
       that if you look at {F/869/30} and then it is the third
       column from the left and {F/869/31}, I think those are
       the more detailed points that these conclusions you have
       been taking the witness to go with.  Now I might be
       wrong.
   MR DE GARR ROBINSON:  I'm sorry, what am I supposed to be
       looking at my Lord?
   MR JUSTICE FRASER:  The testing sample of 15 back end
       changes, ten of which were in the counter and five of
       which were manual.  If you scroll down that column.  Do
       you have {F/869/30}?
   MR DE GARR ROBINSON:  Yes.
   MR JUSTICE FRASER:  If you start at that bullet point and
       just read that column down to the bottom of that page
       and then onto the next page leading to the conclusion
       that begins "There is an increased risk...".
   MR DE GARR ROBINSON:  Based on a testing sample of 15 back
       end changes?
   MR JUSTICE FRASER:  Yes, ten at the counter and 5 manual
       changes.  If you just read that column down to yourself
       to the conclusion, "There is an increased risk...".
           (Pause).
   MR DE GARR ROBINSON:  My Lord, yes.  Is this the 2012/13
       audit?
   MR JUSTICE FRASER:  No.  I'll tell you what I'm going to do.
       Mr Coyne could you go out for a minute please?
   MR DE GARR ROBINSON:  Is this the Ernst & Young management
       letter of 2011?
   MR JUSTICE FRASER:  It is. Are you about to come onto it?
   MR DE GARR ROBINSON:  No, I'm not. This proposal~-- no I'm
       not going into it.
                     (The witness withdraws)
   MR JUSTICE FRASER:  Hold on one second, Mr De Garr Robinson,
       I am waiting for the witness to go out.
           Now what would you like to say?
   MR DE GARR ROBINSON:  My Lord, this document relates to
       a proposal for improvement that was made in the 2012/13
       audit.
   MR JUSTICE FRASER:  I know.
   MR DE GARR ROBINSON:  My Lord I believe you are taking me to
       the 2011 management letter.
   MR JUSTICE FRASER:  I know, but when the witness in part of
       his answers to you says, "I think there is a document",
       and he goes on to deal with it directly in his report
       immediately after the passage you are asking him to, it
       would help me hugely if you would make it clear with him
       what the document is he says supports what he is saying
       justifies his conclusion on the other document you are
       putting to him.
   MR DE GARR ROBINSON:  I see.
   MR JUSTICE FRASER:  Do you see what I mean?
   MR DE GARR ROBINSON:  Yes.  I must confess my focus was on
       fixing bugs rather than his other answers.
   MR JUSTICE FRASER:  I entirely understand that.  I'm just
       faced with a witness who from time to time says: well,
       there is a document, and it would be enormously helpful
       to me if you could either, how shall I put it neutrally,
       either get a tick in the box that that's a document or
       a cross that there isn't such a document when you are
       putting those questions to him.
   MR DE GARR ROBINSON:  I will try my Lord.
   MR JUSTICE FRASER:  I'm not saying --
   MR DE GARR ROBINSON:  Given the vast size of the bundles --
   MR JUSTICE FRASER:  I'm not saying you have to do it on
       every single occasion, but on this particular occasion,
       because the paragraph comes immediately afterwards, it
       is much better to deal with it now than, for example,
       store them all up until Friday evening at 4.30 when Mr
       Green tries to re-examine him in ten minutes.
           I'm attempting to explain to you why it is going to
       be helpful to me.
   MR DE GARR ROBINSON:  Yes.
   MR JUSTICE FRASER:  Can we have the witness back in please.
                 (In the presence of the witness)
   MR JUSTICE FRASER:  Mr Coyne, don't read anything into that
       at all. I just had to have an exchange about a
       particular reference, that is all.
   MR DE GARR ROBINSON:  Mr Coyne, I have suggested to you that
       this particular document has nothing to do with
       deferring or not dealing with issues or bugs on a cost
       benefit basis and I believe you have accepted that,
       I hope you have. (Pause)
           You have accepted that?
   A.  Yes, this particular document isn't about fixing bugs on
       a cost benefit basis.
   Q.  You will have seen from the documents, these documents
       that what was being considered by the Risk & Compliance
       Committee was a proposal that was made in the Ernst &
       Young audit of 2012/13 and we branched into that
       question, although I must admit it wasn't a question
       I was particularly interested in at that stage.  But you
       did say you thought you had seen a document.  Is the
       document you thought you had seen the one that's
       referred to in 5.162 of your first report?  That is at
       {D2/1/98}.  Might it be the Ernst & Young letter of
       2011?  Is that what you were thinking of?
   A.  Do you have that document?
   Q.  Yes.  It is {F/869/1} that is the management letter.  Is
       that the document you were thinking of?
   A.  No, I think the way the document works is there is
       a management letter and there is like a spreadsheet
       version of the observations I believe.
   Q.  My learned friend is very kindly suggesting that it
       might be at {F/1075.1/1}.  Perhaps we can go to that.
   MR JUSTICE FRASER:  I think it is just a draft of the one
       that I showed you.
   MR DE GARR ROBINSON:  This one is:
           "IT component of management letter for the year
       ended 31 March 2013".
           Is that the document you had in mind?
   A.  Quite possibly.  Can I just have a look at the --
   Q.  Perhaps we could scroll forward one page, first of all.
       {F/1075.1/2}.  There is an overview.  Then there is
       a series of detailed observations.  Is that page 2?
           There is a proposal about SAP payroll in paragraph 1
       {F/1075.1/3}.  In paragraph 2 a proposal about POLSAP
       security parameters.  If we go forward a page
       {F/1075.1/4}.  Paragraph 3, a proposal about POLSAP
       again.  Paragraph 4, "Change management monitoring
       control".
   A.  Yes so that relates back --
   Q.  Is that what you were thinking of?
   A.  Yes.  Sorry, can I just have a moment to read that to
       remind myself.  (Pause).
   MR JUSTICE FRASER:  If it doesn't jump out at you as the
       document to which you were referring, please just say so
       and Mr De Garr Robinson can move on.
   A.  This is certainly the document that the text in the
       report refers to but there are documents that relate to
       cost benefit analysis within I believe it is PEAKs.
   MR DE GARR ROBINSON:  That is entirely separate and I'm
       going there, please don't think I'm going to leave you
       out Mr Coyne.  But when you said there was
       a spreadsheet, is this the --
   A.  Yes, I think it is.
   Q.  I'm grateful.  My Lord, I don't know if that assists
       you?
   MR JUSTICE FRASER:  That's very helpful and I don't want to
       knock you off your course or anything like that.
   MR DE GARR ROBINSON:  No, that's quite understandable.
           So you have accepted that the evidence you cite for
       the proposition "known issues" were often deferred and
       dealt with on a cost benefit basis is no evidence for
       that proposition at all.  You have accepted that,
       haven't you?
   A.  I accept that the reference that I have provided doesn't
       go to a document that shows that but I have other
       references that I will --
   Q.  You didn't have you -- say you think there is a PEAK and
       we will come -- but you didn't have a PEAK in mind at
       the time that you made your first report, did you?
   A.  Or I have not referenced it correctly when putting the
       report together.
   Q.  Why is it you were able to give this example as evidence
       of the claim that this often happened.  How did it come
       about?  Did you not read the document --
   A.  No, there is more than one.
   Q.  Mr Coyne, you make a claim?
   A.  Yes.
   Q.  Then you immediately cite evidence in support of it?
   A.  Yes.
   Q.  And I'm asking you how it is you came to cite evidence
       in support of it which is no evidence at all.  Did you
       not read the document?
   A.  I have certainly read the document.  I believe it is
       incorrectly referenced.
   Q.  What do you mean incorrectly referenced please, would
       you explain that?
   A.  Yes.  So I have had a note of the point of cost benefit
       analysis and I have then searched for the appropriate
       reference in my database of references and it looks like
       I have referenced the wrong document, but it does
       contain the words "cost benefit" and that's how the
       mistake --
   Q.  Mr Coyne, isn't that exactly the sort of thing that you
       accepted a few minutes ago that an expert should not do?
       That it is incumbent upon an expert when citing
       a document as evidence for a proposition to read the
       document carefully to ensure that it is evidence for
       that proposition?
   A.  Yes.
   Q.  Why did you not when going through your report read the
       document carefully with a view to ensuring it was
       evidence for the proposition?
   A.  With regard to this I have made a mistake in referencing
       this document.
   Q.  Can I suggest to you that the mistake that you made is
       that you were anxious to assert that fixes were deferred
       and dealt with on a cost benefit basis and so what you
       did was you found a document that talked about cost
       benefit basis and you put it in?
   A.  I have found other documents but I have made a mistake,
       I do accept that.
   Q.  Let's go forward to another document you cite.
       I believe this is the only other document you cite in
       your first report for this proposition.  If we go to
       paragraph 6.1 which is at page {D2/1/109}.
   A.  Sorry, I don't have that yet.
   MR JUSTICE FRASER:  Do you have your hard copy report in
       front of you?
   A.  Yes, I do.  Yes, I have that.
   MR DE GARR ROBINSON:  So is this evidence you have in mind?
       Perhaps I could ask you to read paragraph 6.1 to 6.3.
       (Pause).
           Now in fairness to you you don't cite this document
       as being in support of your claim that fixes were often
       dealt with on a cost benefit basis, but was this
       a document that you had in mind in supporting that
       claim?
   A.  Yes.
   Q.  Well, let's look at that, shall we?  The document is at
       {F/1697/1}.  This is called "Reconciliation and Incident
       Management Joint Working Document".  It is dated, the
       current version, 18 March 2013.
           If we could go forward to page {F/1697/9} of this
       document to see its purpose.  Perhaps I could ask you to
       read section 1.1:
           "What is a reconciliation?
           "End to end reconciliation within HNG-X..."
           That is Horizon Online, isn't it?
   A.  Yes.
   Q.  "... is the mechanism by which Post Office Ltd (POL) and
       Post office Account (POA) establish which transactions
       are complete and correct, and which are not. An
       incomplete transaction is not necessarily a
       Reconciliation error, but it might become one if it is
       not completed in a timely manner. An incorrect
       transaction is a Reconciliation error."
   A.  Yes.
   Q.  Over the page {F/1697/10}:
           "Each and every reconciliation error is the result
       of some system fault. That fault might, for example, be
       a software bug fault (introduced through either design
       or coding), a system crash, or a telephone line being
       dug up. Such faults may affect transactions, thus it is
       the job of Reconciliation Service to detect when and how
       any transaction is affected by any system fault."
   A.  Yes.
   Q.  "A reported reconciliation error provides:
           "A business impact in terms of an error report on
       a transaction and;
           "Evidence of a system fault that may need some
       corrective action.
           "It is acknowledged that not all system faults will
       lead to corrective action as this is generally done on a
       contractual and/or cost benefit basis."
   A.  Yes.
   Q.  So do you say that that is evidence for the proposition
       that bug fixes in Horizon are dealt with or deferred on
       a cost benefit basis?
   A.  Yes.
   Q.  What this document makes clear is that a system fault
       has a very wide range of meanings, doesn't it?
   A.  Yes.
   Q.  On a fair reading it is a fault causing an error in the
       systems by which transaction data are compared against
       and reconciled with client transaction data?
   A.  Yes.
   Q.  It is a fault which it is the job of the reconciliation
       service to investigate, to detect when and how the fault
       was operated?
   A.  Yes.
   Q.  It is not a fault causing Horizon to have a false
       transaction in the first place.  That is the job of the
       SSC to investigate, isn't it?
   A.  Yes.
   Q.  It is hardly surprising that the question whether
       a system fault causing a reconciliation error is
       corrected might involve a cost benefit analysis or
       an analysis of who is responsible for what between the
       client and the Post Office, is it?
   A.  I do not think the two go hand in hand.  If you are
       deciding whether to correct bugs on a cost -- sorry,
       correct system faults, a subset of which is software
       bugs or faults, depending on which is in the latest
       version of the document, then you are deciding not to
       fix those faults because it is either too expensive or
       doesn't provide sufficient benefit.
   Q.  Mr Coyne, I'm suggesting to you that this document says
       nothing about the approach adopted by the SSC to bugs in
       Horizon causing discrepancies in branch accounts.  Do
       you not accept that?
   A.  Well, bugs in Horizon are fixed by Fujitsu.
   Q.  They are fixed by the SSC.  They are not fixed by the
       reconciliation service, would you accept that?
   A.  I don't believe that they are necessarily fixed by SSC.
       I think they are identified by SSC.
   Q.  You are quite right, they are fixed by development when
       the SSC passes it onto development.
   A.  Yes.
   Q.  But they are not fixed by the reconciliation service,
       are they?
   A.  No they are not fixed by the reconciliation service but
       the reconciliation service will report that there is
       a problem; that will then be investigated and it will be
       decided whether it is a software, bug or fault either
       introduced through design or coding, whether it is
       a system crash, whether it is a telephone line being dug
       up.  Somebody then will decide whether that system fault
       should be fixed.  But if it is a system fault that is
       a software bug, it will be Fujitsu that fixes that even
       though the fault might be found initially by the
       reconciliation service.
   Q.  What I'm suggesting to you Mr Coyne is that you can't
       reasonably infer that this passage of this working
       document is talking about the SSC's and the fourth
       tier's and the third tier's approach to the fixing of
       bugs in Horizon?
   A.  I believe firmly it is.  That's what it is saying.
   Q.  Very well.  I suggest to you, Mr Coyne, that you
       certainly can't infer that it was often decided by the
       SSC or development not to fix bugs because the cost was
       too great?
   A.  Well, what it actually says, this is generally done on
       a contractual or cost benefit basis.
   Q.  If this were generally done there would be a significant
       number of PEAKs recording that it had been done.  It is
       the kind of thing that would be recorded in a PEAK,
       isn't it?
   A.  If the process is working properly, then it is likely
       that there will be a PEAK identified for these, yes.
   Q.  If there were a significant number of PEAKs -- if this
       were often done, there would be a significant number of
       PEAKs evidencing the fact that it is done, correct?
   A.  There might only be one PEAK.
   Q.  Why might there only be one if it is often done
       Mr Coyne?
   A.  Because if it becomes a problem that occurs repeated
       times and there is a consideration of what the fix is,
       Fujitsu won't raise tens or hundreds of PEAKs per day
       all relating to the same fault.  They will refer back to
       the one single KEL that identifies the problem.  That's
       the purpose of PEAKs and KELs.
   Q.  If known issues are often deferred or dealt with on
       a cost benefit basis, then there must be a significant
       number of separate issues that are deferred or dealt
       with on that basis; correct?
   A.  Yes.
   Q.  For each of those issues there will be at least one
       PEAK, sometimes there will be more, considering that
       aspect, yes?
   A.  There should be at least one PEAK or one KEL or probably
       both.
   Q.  So if this is often done, there will often be known
       issues in relation to which this is done so there will
       often be PEAKs recording that this has been done;
       correct?
   A.  No.  If the fault is found again next week, Fujitsu go
       back, they search for the reason for the fault, they
       find that there is a KEL -- that is the purpose of the
       KEL it is the knowledge base.  So they will not then
       raise another PEAK, they will see that it is going to be
       fixed at some time in the future by that KEL.
   Q.  It may be you are not quite grasping the suggestion I'm
       making to you.  Are you suggesting that actually there's
       only ever been one issue in relation to which this has
       happened and that there's one KEL covering it happening
       and therefore there will only be one PEAK covering it
       happening, is that the logic of your position?
   A.  There is likely one KEL for every different
       manifestation of the defect.
   Q.  Yes, so if it is being done often -- your claim is that
       it is being done often -- then there will often be PEAKs
       recording this decision being made.  In fact there will
       probably often be KELs as well, wouldn't there?
   A.  Yes but they don't duplicate a KEL every time a defect
       happens.
   Q.  Mr Coyne, I'm struggling and it may be my fault.  If
       known issues are often dealt with on a cost benefit
       basis, there must often be issues which are dealt with
       on a cost benefit basis, correct?
   A.  Yes.
   Q.  And each of those issues will have their own KELs and
       their own PEAKs, yes?
   A.  Yes.
   Q.  Perhaps I can put my point again.  In circumstances
       where we have a system in which Fujitsu often make
       decisions to defer or not deal with known issues on
       a cost benefit basis, there are going to be
       a significant number of PEAKs and KELs recording that
       being done, do you accept that?
   A.  I do but I do not think it is Fujitsu that is taking the
       decision to do it on a cost benefit basis.  If that is
       the Post Office taking the decision then, yes, I agree
       with that.
   Q.  Am I right in thinking that at the time you produced
       this report you had not found any such PEAK because if
       you had it would be in this report, wouldn't it?
   A.  I don't know whether I was aware of it at the time but
       there are certainly PEAKs that talk about things being
       deferred on a cost benefit basis, whether I had found it
       at the time of this report or found it later I'm not
       sure.
   Q.  I suggest to you, Mr Coyne, that you obviously hadn't
       because if you had they would have been referred to in
       this report, would they not?
   A.  Likely, yes.
   Q.  Right.  So at the time you made this report is it likely
       that you didn't know of any PEAKs in which this was
       recorded, that your only evidence is the two documents
       I have just taken you to?
   A.  This document is quite strong because it talks about the
       corrective action generally being done on a cost
       basis --
   Q.  Is it likely that when you made this statement the only
       evidence you had to support it was the Risk and
       Compliance committee meeting minutes and the document we
       have just come to?  I have had your commentary on
       whether you think either of those documents is good
       evidence.  I'm simply asking you whether it is likely
       that those were the only two pieces of evidence you had
       at the time you made this report?
   A.  It is certainly possible that is the case, but I would
       have to look at when the PEAKs arrived.
   Q.  You have just said there are PEAKs, plural, where this
       has happened?
   A.  Yes.
   Q.  Now Mr Coyne I'm aware of one PEAK which might be said
       to support a suggestion that there was one occasion on
       which a cost benefit analysis was adopted and I'm going
       to take you to it.  It is referred to in your second
       report.  Are you aware of others that are not referred
       to in your second report?
   A.  I believe there is more than one, yes.
   Q.  You clearly looked very hard for them.  Would I be right
       in inferring that that is the case?  You looked very
       hard for PEAKs to support this proposition, did you?
   A.  I don't believe there were any specific searches that
       I conducted for that, no.
   Q.  So you didn't make any specific searches but you
       stumbled over how many PEAKs to support the proposition?
   A.  A handful perhaps.
   Q.  I'm only aware of one, Mr Coyne.  Might it be possible
       for you to come to court tomorrow and tell me what the
       others are?
   A.  Certainly, yes.
   Q.  Let's go to the one I'm aware of.  Let's go to
       {F/271/1}.  This is a PEAK PCO120937.  It is dated
       20th May 2005.  It is a customer call, at the top box of
       the PEAK, details entered are:
           "Summary: PM is stating that the system remmed out
       some coin."
           If we go down to the second line in the top box:
           "PM is stating that the system remmed out some coin
       its own and it produced no paper work, and they would.
       Like to know if we can find out the Pouch number so they
       can reverse it out."
           Do you see that?
   A.  Yes.
   Q.  If we go over the page to {F/271/2} at 16th May, 12.01.
       I won't read it out but you will see that Sarah English
       is unable to recreate the problem.  Do you see that?
   A.  At 12.01?  Yes.
   Q.  Then if we go over the page to page {F/271/3} and this
       time at the top of the page, 17th May, 13.55.  This is
       Gary Maxwell?
   A.  Yes.
   Q.  The last paragraph you will see he says:
           "I have attempted to replicate this on our test
       counter but could not abandon the session any other way
       than by following the available menu options. In all
       cases the session finished as expected without writing
       any messages."
           They can't recreate the problem, yes?
   A.  Yes.
   Q.  Often that's a reason for thinking that there may not be
       a problem there.  But often it may be that they are just
       perplexed and one just doesn't know.
           If one goes to {F/271/4} (Pause).  7.32 about three
       boxes down, 13th June 2005.  This is from Lionel Higman?
   A.  Higman I believe.
   Q.  Thank you.
           "Is the frequency of occurrence for this problem
       known?  How severe are the problems caused?  Is recovery
       possible?  Would it be sufficient to raise a KEL to
       manage future occurrences more effectively?"
           You see the question being raised there?
   A.  Yes.
   Q.  Then if you go down to 10.13.  My note is terrible...
   A.  10.33 might be relevant:
           "Gary advises development have found a potential
       bug. They want to know the scale of the problem as there
       is potential risk in changing the code."
   Q.  Right.  Thank you.  For some reason I keep typing a 1
       instead of a 3 in my notes.  The concern being expressed
       by development here is risk from making a change.  Do
       you see that?
   A.  Well, found a bug and then there is associated risk with
       making the change.  There are two elements.
   Q.  If we go back.  I'm sorry I went too fast.  If we go
       back to page 3.
   A.  There was 10.13 on there that might be helpful as well.
   Q.  I'm sorry Mr Coyne, what were you saying?
   A.  If we go back to the page that we were just on at 10.13,
       at the bottom.
   MR JUSTICE FRASER:  On 15th June?
   A.  15th June, yes.
           "First instance, check the PEAKs.  The impact on the
       office is that they will have an amount posted to the
       suspense account ... equivalent to the remittance
       amount.  This will be evident until remedial action is
       taken."
   MR DE GARR ROBINSON:  Stopping there.  What does that mean?
   A.  So the suspense account is going to be likely in
       balance.  It is going to have an impact anyway.
   MR DE GARR ROBINSON:  It means that the postmaster is going
       to know very well what happened, isn't it?
   A.  Well, the postmaster will have a suspense account that
       doesn't balance.  I do not think they will know what's
       happened but they might know what the impact is.
   Q.  At any rate they will know there is a problem that needs
       to be addressed, yes?
   A.  Did the postmaster raise the call on this one?  Did they
       ring up in the first instance reporting the fault?
   Q.  I believe the passage I read you -- yes, postmaster is
       stating the system remmed out some coins, do you
       remember?
   A.  Yes.
   Q.  The postmaster knew exactly what had happened.  And he
       says {F/271/5}:
           "There is nothing the PM can do to correct this. The
       sensible recovery option is for the NBSC to issue an
       error notice for the remittance amount as in this case."
           So that had happened in this case it would seem?
   A.  Yes, so that is a correction on the accounts.
   Q.  What we now call transaction corrections.
           "The alternative would be for SSC to create the
       necessary Riposte messages to cancel out the error
       (currently being tested).
           "A KEL has been created on the back of this call and
       will be updated shortly.
           "Given the frequency of the problem & the apparent
       risk involved in introducing a code fix the KEL should
       be adequate."
           Do you see that?  What's being presented there by
       Gary Maxwell is that it is a very low frequency problem
       and there's risk involved in introducing the code fix.
           Do you know why there is a risk involved in
       introducing a code fix?
   A.  There's inherent risk in any change to a system.  So
       introducing any fixes to code brings a risk with it.
   Q.  So up until now the debate is about risk of doing
       a change compared with the benefit of doing the change,
       bearing in mind it is such a rare problem.  Do you see
       that?
   A.  Yes.
   Q.  Then if we go down to 11.28 we see Mark Scardifield.
       This is where the word "cost" gets mentioned:
           "Weighing up the cost and risk of an attempted fix
       against the fact that this has only been reported once,
       I do not believe that we should make a code fix. If
       further incidents of this problem are reported we can
       review this decision. Gary has raised a KEL, so
       returning for closure as "Published Known Error".
           Do you see that?
   A.  Yes.
   Q.  So what we have is a debate which largely revolves
       around the risk involved in making a fix in this part of
       the system?
   A.  Yes.
   Q.  And what Mark Scardifield does is he brings in the word
       "cost"?
   A.  Yes.
   Q.  Do you say that this PEAK is evidence for the
       proposition that decisions about fixing problems were
       often made on a cost benefit basis?
   A.  It certainly does indicate that.
   Q.  It indicates that what's happened is that the parties
       are concerned primarily with risk and on that basis they
       decide that they will leave the problem as it is.  It
       doesn't support the notion that decisions are often made
       on a cost benefit basis, does it?
   A.  It is another reference to decisions being taken on
       a cost benefit basis.
   Q.  It is one instance.  It is a PEAK where the word "cost"
       is referred to?
   A.  Yes and the other document that we talked about, things
       are generally done on a cost benefit basis.
   Q.  Let's look at the KEL that was created for this?
   A.  Before we move on, just for context, can we just read
       the top column there because it talks about what the
       possible remedial actions are.
   MR JUSTICE FRASER:  Which page?
   A.  F/271 and it is the one above 10.14.
   MR JUSTICE FRASER:  If you look to the right, is it page 5?
   A.  Page 5 because it talks there that the alternative would
       be for SSC to create the necessary Riposte message to
       cancel out the error.
   MR JUSTICE FRASER:  You are going to have to give us both,
       Mr De Garr Robinson and me, the date and the time please
       of where you are reading.
   A.  Certainly, it is the very top box.  It is above
       15th June 2005.
   MR JUSTICE FRASER:  The one in the pale green at the very
       top?
   A.  Yes.  It starts with "... remittance amount as in this
       case."
           But of interest is the alternative remedial action
       to fix the accounts is:
           "... would be for SSC to create the necessary
       Riposte messages to cancel out the error".
           That is the insertion of messages in Riposte which
       is relevant to other aspects that we are talking about.
   MR DE GARR ROBINSON:  Thank you.  Can we now look at the KEL
       that was created for this fix because what I want to
       suggest to you, Mr Coyne, is that the focus of this
       decision or the main reason for this decision was risk.
           If we could look to {F/276/1} please.  This is the
       KEL that was created?
   A.  Yes.
   Q.  It says:
           "The PM was attempting to do a remittance out ADC
       for a bag of coins. After entering an invalid bar code
       for the particular type of transaction the session was
       aborted by pressing the 'home' key."
           Then:
           "Firstly, during the remittance out process pressing
       'home' should not be an available option. The only way
       of completing the session is to navigate the screen
       prompts & cancel the session or return to Desktop and
       bin the item on the sales stack.
           "By aborting the session in this way the EPOSS
       remittance items on the sales stack were incorrectly
       committed. Normally these messages are only committed
       once a successful barcode has been scanned/entered & at
       the same time as the LFS remittance out message."
           Then there is some computing gobbledygook:
           "The PM will not be able to reverse the transaction
       using existing reversal (because of the tran type) or
       will they be able to use the pouch reversal function (as
       no pouch id exists).
           "The suspense account will be debited/credited by
       the amount of the remittance.  The office snapshot/cash
       account report will continue to show the remittance
       amount under unclaimed payments."
           Their solution.  It refers to Atos, but Atos wasn't
       on the scene in 2005.  So I apprehend that one big
       word-processing change was made when Atos was involved
       many years later but it says:
           "Solution:
           "Development have identified a possible bug in the
       counter code. However, due to the frequency of the
       problem & the risks involved in making the necessary
       changes it has been decided that a code change will not
       be made. Raise a call on EDSC. In the one case to date,
       an error notice was issued to the office for the amount
       of the remittance."
           What we have here is a debate in a PEAK about risk
       where there is a reference to cost and then we have
       a KEL that has been produced as a result of that debate.
       That KEL does not refer to cost, it just refers to risk.
           Do you suggest, Mr Coyne, that this document, this
       KEL and this PEAK together, constitute evidence that
       deferring and dealing with known issues were often dealt
       with on a cost benefit basis?
   A.  It is certainly another document that indicates that
       cost was a consideration in whether to fix.
   Q.  Well this is the only document of which I'm aware, PEAK
       or KEL, in which this point has been made.  You say that
       you are aware of others?
   MR GREEN:  My Lord, I have tried to let it run but I mean in
       that actual section of his report at 5.166 on page 99 he
       actually specifies the other PEAK.
   MR JUSTICE FRASER:  Give me the reference.
   MR GREEN:  It is 5.166.
   MR JUSTICE FRASER:  No, the bundle reference.
   MR GREEN:  Sorry, {D2/1/99} which is the next page of his
       report in the same section.
   MR DE GARR ROBINSON:  This is his second report?
   MR GREEN:  No, in the first report where we were dealing
       with the Ernst & Young stuff and you put to him only
       documents and so forth, and in 5.166 he specifically
       mentions a PEAK. It was put to him he hadn't looked at
       any.
   MR JUSTICE FRASER:  Is this the one at {F/275.1/1}?
   MR GREEN:  It is my Lord, yes.
   MR JUSTICE FRASER:  Yes.  Mr De Garr Robinson, I'm very
       happy for you to look at that and resume with it in the
       morning or do it now?
   MR DE GARR ROBINSON:  No, my Lord, I'm content to break
       today.
   MR JUSTICE FRASER:  Okay.  So Mr Green what was your point
       on the way the question was put that it is the only
       document?
   MR GREEN:  When you look back across the transcript --
   MR JUSTICE FRASER:  The transcript says --
   MR GREEN:  It is the only document I'm aware of.
   MR JUSTICE FRASER:
           "Question:  This is the only document of which I am
       aware, PEAK or KEL, in which this point has been made."
   MR GREEN:  And it has been going on for about 20 minutes.
           And it is not really fair to Mr Coyne when one ought
       to be aware of what he says in that very section of his
       report on this point.
   MR JUSTICE FRASER:  Right, well --
   MR DE GARR ROBINSON:  My learned friend seems to be
       suggesting that the document {F/275.1/1} is further
       evidence of a decision to defer a fix on the basis of
       a cost benefit analysis.  Let's look at that, shall we,
       can we look at {F/275.1/1} please.  So this is dated
       18th June 2005.  The call logger is:
           "Deleted user.  ITU, SV&I."
           I'm not sure what that means.  POL have raised the
       following incident:
           "'A cash declaration was made in "Stock Balancing"
       for the amount displayed on the Snapshot. When the Cash
       Variance was checked afterwards a Gain of £45.05 was
       displayed.
           "The discrepancy was the cash value of the
       transactions performed on the stock unit after rolling
       into branch trading."
           Then there is further information about it.
           Could we perhaps go over the page {F/275.1/2}.
       16th June at 15.59:
           "I've attempted to recreate the situation which
       occurred over a CA Rollover in this instance and the
       injecting a transaction like the mails txns ...
       Difference being that up here the trace has turned up
       a transaction received ... and in the supplied audit log
       nothing at all appears ..."
           Then the next box says:
           "After several days of attempting to recreate this
       problem ... I have only seen one instance of this
       problem."
           Excuse me.  (Pause)
           Could we go back to the first page of this PEAK,
       please {F/275.1/1}.  You see the call type on the
       left-hand side, Mr Coyne?
   A.  Yes.
   Q.  "Business Integration Testing Incidents/Defects."
           This is the testing PEAK, isn't it?
   A.  Yes, I think that is right.
   Q.  Could you explain what a testing PEAK is?
   A.  It is a defect that has arisen on the system during
       testing, so not in live operation.
   Q.  Does a testing PEAK like this, is it capable of
       constituting evidence that known issues in the system
       are dealt with on a cost benefit basis?
   A.  Certainly, if they are dealing with defects that are
       found in testing on a cost benefit basis and therefore
       don't fix the defect it will go out to live.
   Q.  Now, is it -- and it may be unfair to ask you this
       question because you didn't raise it but now you have
       seen this PEAK do you remember it?
   A.  I'm not sure I do.  Can I look, please, at the end of
       the ...
   Q.  I don't know how long it is.
   MR JUSTICE FRASER:  It is five pages.
   MR DE GARR ROBINSON:  Could we look at page 4, please.
       I must confess I hadn't read 5.166 as being even
       relevant to this point. {F/275.1/4}
   A.  It looks like it needs to go out to Escher to be fixed
       rather than Fujitsu.  It says at the bottom:
           "This amounts to a declaration by POA that we are no
       longer interested in obtaining a fix."
           But it doesn't make a reference to a cost benefit.
   Q.  Thank you.
   MR JUSTICE FRASER:  Right.  Is that a good --
   MR DE GARR ROBINSON:  I think we are at 4.30 pm.
   MR JUSTICE FRASER:  I think it probably is.  Right.
           A couple of things.  Mr Coyne, you have some
       homework, but generally when you are giving your
       evidence tomorrow you have got in front of you, and
       that's why I checked this afternoon, a hard copy of your
       report?
   A.  Yes, I have.
   MR JUSTICE FRASER:  It is very tempting when
       Mr de Garr Robinson is asking questions just to look at
       the screen.  It's probably a good idea also to flick to
       your report but it is completely up to you whether you
       do that or not.
           And Mr Green, you might want to store points such as
       that one up for re-examination, if you have any, because
       you might find that upon mature reflection they are not
       the points you thought they were when you jumped to your
       feet, although I appreciate you have been restrained, or
       you think you have been restrained today.
           And Mr de Garr Robinson, 10.30 am tomorrow.
           I assume you don't have any objection to the witness
       looking on his knowledge database to do the homework
       that you set him?
   MR DE GARR ROBINSON:  My Lord, of course not.  Obviously he
       won't be talking to anyone.
   MR JUSTICE FRASER:  No, I'm just about to remind him.
           Mr Coyne, normally you won't have homework but it is
       particularly important that you, not your assistant,
       does that.
   A.  Absolutely, my Lord.
   MR JUSTICE FRASER:  If he finds anything what do you want
       him to do in terms of bringing it with him or notifying
       references?  Are you happy to get that tomorrow morning
       at 10.15?
   MR DE GARR ROBINSON:  My Lord, yes.  I don't think I will be
       going back to it immediately.  It will be something to
       be dealt with on another day.
   MR JUSTICE FRASER:  All right.  In that case, Mr Coyne, if
       you can just find them and bring -- I don't know whether
       it is easy to print them off.  If you do find anything
       bring it with you and we will deal with that first thing
       but you won't necessarily be asked questions about it
       because Mr de Garr Robinson will want to have a look at
       it.  Is that clear?
   A.  It is indeed.
   MR JUSTICE FRASER:  Anything else?  10.30 am tomorrow.
       Thank you very much.
   (4.36 pm)
             (The court adjourned until 10.30 am on
                    Wednesday, 5th June 2019)