Access to Redress Schemes

Rosie Winterton Excerpts

Thursday 18th April 2024 Commons Chamber

[Mr Carmichael]

That could be right, but I doubt it. My reputation is as a friendly and approachable character. We went through the process and eventually I said, “If these people had not taken that court action, how much would any victim of Alistair Greig have got back?” The silence was absolutely deafening. I let it run for as long as I could, and eventually I said, “Well, I think I understand now why you are so reluctant to come to the House of Commons next Wednesday.” The call did not go on much after that, but I did say that I thought that the matter required escalation, and asked them to call back on Monday with arrangements for me to speak to the chief executive. I did not get a call, but I did get an email on Monday saying that they had nothing further to add.

The chief executive of the Financial Conduct Authority is Nikhil Rathi. Interestingly, a couple of years ago that job commanded a salary of £455,000 per annum. I calculated that the Prime Minister’s salary is about 37% of what we pay the chief executive of the FCA. For jobs like that, it often feels that the more you pay, the less you get. I contrast the lack of moral courage of people like that, who will not sit in a room with the people whose lives have been affected by the decisions they have taken, to that of some of the people who were in the room last night, including the solicitors Philippa Hann and Robert Morfee. At first, the judge in the Sense Network case was not going to turn up, but he was there in the room. We expect judges to plead the independence of the judiciary, and rightly so, but out of respect for what these people had been though, he was prepared to turn up, watch the documentary and share the space with them. That spoke well to his strength of character.

Another person who was in the room was Judy Greig, the ex-wife of Alistair Greig, who was responsible for the scheme. She divorced him after his crimes came to light. He made himself bankrupt, but she refused to do that, so she has ended up carrying some of his debt. She is now 72 years old. She is working in a supermarket and still supporting the victims of her husband’s criminality. Her remarkable strength of character is in contrast to that of people like the chief executive of the FCA who, despite the very well-funded taxpayer salary that they get, simply lack the decency and moral courage to sit down in a room with their victims.

That is why I think that the question of culture is at the root of the issue. Since I became interested in the last few days in the detail of what was going on in the FCA, I have found very little to offer me comfort. Apparently, the FCA said that 60 of its staff were earning salaries below the £29,500 per year set by the Joseph Rowntree Foundation as the minimum amount that people need to earn to reach an acceptable standard of living. It is a possibility that the FCA will establish its own hardship fund in 2024, if there is enough demand among staff. This is an organisation where the chief executive is paid £455,000 a year.

Some of the commentary on the culture in the FCA is pretty damning. In one anonymous online report, a former colleague described the CEO as

“a very high IQ, but not as much EQ”—

emotional quotient. As we know, culture comes from the top of an organisation downwards. Unite, the union that represents many FCA workers, talks about the “toxic” environment for staff representatives, who have been given “minimal information” by their bosses. Again, this comes down to culture. How the FCA treats its staff reads across to how it treats people like my constituents, who find themselves in need of its services.

We set up the FCA for a reason, and the FSCS for another reason. The FSCS was only supposed to be there in case the FCA failed in any way. It is paid for by companies in the financial services sector, which are regulated, so they pay for the regulation, and for the failure of that regulation. This is something that the Government seriously need to look at soon. In the meantime, if the FCA wants to do anything to persuade me or anybody else in this House that I am wrong about the culture within that organisation, it can put the final sum of £1.9 million in a cheque to the 95 claimants who were the victims of Alistair Greig and Midas Financial Solutions.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the SNP spokesperson.

--- Later in debate ---

[Chris Stephens]

I think that is true. I get the sense that there is an anti-politics feel out there. That is not just directed at some individuals; it is a systematic issue. I think that people get very frustrated at the systematic delays that can take place in order to find redress.

I wish to pay tribute to my hon. Friend the Member for Motherwell and Wishaw (Marion Fellows) and to the right hon. Member for North Durham (Mr Jones) who have done fantastic work in highlighting the Horizon scandal. I do hope that the Government act swiftly, because we have to remember that 250 sub-postmasters have died without seeing justice. I believe that justice for all is vital, because justice delayed is justice denied.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. Before I call the shadow Minister, I just want to emphasise to those who might be wanting to participate in the next debate how important it is to get back for all the wind-ups, including that of the SNP spokesperson. It is rather discourteous not to do so. Thank you.