Data (Use and Access) Bill [HL]

Lord Arbuthnot of Edrom Excerpts

2nd reading
Tuesday 19th November 2024 Lords Chamber

[Lord Arbuthnot of Edrom (Con)]

My Lords, it is always rather daunting following the noble and learned Lord, Lord Thomas. I think the safest thing to say, which has the added benefit of being true, is that I agreed with him.

I declare my interests as set out in the register, in particular that I am a member of the Horizon Compensation Advisory Board and the chair of the advisory panel of Thales UK, which makes the British passport. As the noble Lord, Lord Knight, said, this Bill is a wonderful opportunity to talk about everything that is not in it and to discuss further measures that could be included. The noble Baroness, Lady Kidron, mentioned the amendment she moved on 24 April to the predecessor Bill, designed to deal with the presumption that computer evidence is reliable, despite the fact that we all know that it is not. We shall need to come to that presumption in Committee.

I supported the amendment from the noble Baroness in Committee earlier this year, although I accept—as I think she does—that simply returning to the position as it was in 1999, before the presumption existed, may not be the best solution. We need some method, for example, of accepting that breathalysers, on the whole, work as they are intended to do, and that emails, on the whole, work as they are intended to do, and we should not have to get a certificate of accuracy from Microsoft before every trial.

The need to find a solution to the problems so brutally exposed by the Post Office scandal is urgent. In the Post Office cases, in essence, the proper burden of proof was reversed and hearsay evidence that was false was accepted as gospel truth. As a result of Horizon and the appalling human behaviour that accompanied it, the lives of hundreds, perhaps thousands, of postmasters were ruined and the UK and Fujitsu are going to have to pay billions in compensation. So this matter is urgent.

The solution may be, as Alistair Kelman has recommended, a set of seven or so detailed statements setting out what has been done to ensure that the computer evidence is reliable. It may be, as a senior and highly respected judge has recommended, a division between complex cases, such as those involving a system such as Horizon, and simple cases, such as those involving breathalysers and emails, with more stringent evidentiary requirements for the complex cases. It may be, as Professor Steven Murdoch has suggested, that documents designed to test the reliability of computer systems should be made available to the other side and be subject to challenge. It may be something else, but this Bill is an opportunity to consider, examine and test those solutions, and another such opportunity may not come along quickly. I repeat: this matter is urgent.

On a different matter, Part 2 of the Bill establishes a regulatory framework for the provision of digital verification services in the UK. We need to be clear that having a clear and verifiable digital identity is a completely different matter from going down the route of identity cards. This is not an identity card Bill. It is an essential method of establishing, if you want or need to have a digital identity, that you are who you say you are and you have the attributes that you say you have. It is a way of establishing relevant facts about yourself without having to produce gas bills. I do not know about other noble Lords, but I find producing gas bills rather tricky now that they are almost all online.

Sometimes the fact you need to establish will be age: to establish that you are allowed to drink or to drive, or that you are still alive, or whatever. Sometimes it will be your address; sometimes it will be your sex. We do not want men going to women’s prisons, nor men who identify as women working in rape crisis centres. Sex is an issue on which it is necessary to have some degree of factual clarity in those circumstances where it matters. The Bill, again, is an opportunity to ensure that this factual clarity exists in the register of births. It will then be for the individual to decide whether to share the information about their sex, age, or whatever.

An organisation called Sex Matters—I am grateful for the briefing—issued a report yesterday pointing out that, at the moment, data verification services are not authoritative, in that they allow people to change their official records to show them as the opposite sex on request. One consequence is that, for example, transgender people risk being flagged up as a synthetic identity risk and excluded, for example, from banking or travel. Another is that illnesses may be misdiagnosed or that medical risks may fail to be identified.

So this Bill is a rare opportunity to put right some things that currently need to be addressed. Those of us speaking today have received a number of helpful briefings from organisations interested in various issues: I have mentioned only a couple. I hope we will take the opportunity given to us by the Bill to take on board several of those proposals.

Future of the Post Office

Lord Arbuthnot of Edrom Excerpts

Monday 18th November 2024 Lords Chamber

[Lord Arbuthnot of Edrom (Con)]

My Lords, like the Minister, I believe in the Post Office. I see its future as a network of essential hubs spread throughout the country, holding communities together and giving people the chance to do their banking, to meet on a social basis, and to interact with the Government, other agencies and more services, including healthcare. That future would build up the country’s resilience. If that is right, should we not be expanding the network rather than reducing it?

[Baroness Jones of Whitchurch (Lab)]

First, I pay tribute to the noble Lord for all the work he has done on this over the years. Nobody knows the challenges better than he does, and I absolutely agree: there is potentially a rosy future for post offices in exactly the way he described—as a network of basic service provision hubs, in addition to the banking hubs that we also see expanding. We need to ensure that we get the finances of this right, but we can all see the potential of the Post Office network to provide far more than it already does. It can provide a community hub, in the way that we were just talking about, but also a public service hub. Particularly as we move towards a lot of services being digital and online, post offices will have a role to provide for people who are digitally excluded in some way, so that they have that point of contact and a person can help them access those services, face to face. They have an essential role in the future, in the way that the noble Lord talked of.

Post Office (Horizon System) Offences Bill

Lord Arbuthnot of Edrom Excerpts

Committee stage
Thursday 23rd May 2024 Lords Chamber

Moved by

[Lord Arbuthnot of Edrom]

2: Clause 1, page 1, line 10, leave out paragraph (c)

[Lord Arbuthnot of Edrom (Con)]

My Lords, in the unavoidable absence of the noble and learned Lord, Lord Falconer, I shall speak to Amendments 2, 4, and 6, and to the question that Clause 3 stands part. I shall briefly touch on Amendment 1, which intended to include in the convictions to be overturned by this Bill those convictions that were secured by the Department for Work and Pensions. Although I have concerns about those convictions—I thank in particular a former sub-postmaster, Chris Head, for his tireless work on the subject—I do not think that those concerns have yet reached the extraordinary threshold required to ask your Lordships, as a legislature, to overturn convictions made by the courts.

However, I take a different view about those cases that have been before the Court of Appeal. We shall, I hope, decide today in Parliament to overturn the convictions of hundreds of sub-postmasters. We need to try to be fair. as between sub-postmasters. in choosing those whose convictions we overturn. The 13 cases which have been before the Court of Appeal in one way or another are not outstandingly wicked, compared with the hundreds of other sub-postmasters whose convictions will be overturned. Those 13 will not necessarily have the recourse of going back to the Court of Appeal because there may be no new evidence in their individual cases—new evidence which other sub-postmasters whose convictions are being overturned by this Bill are not required to provide. That is not fair, and I believe we should agree to Amendments 2, 4 and 6, and we should take out Clause 3.

[Baroness Brinton (LD)]

My Lords, I have Amendment 14 in this group, but just before I get to that, from these Benches, I support everything that the noble Lord, Lord Arbuthnot, just said. Had we had a proper, usual style of Committee we would have debated this for much longer and perhaps even taken things to a vote, but we recognise that times are different.

I have tabled Amendment 14 because I had a bit of a debate with the Minister about the previous software, Capture. I am very grateful to him for the private meeting that we had, where we discussed my concerns in some more detail. I hope he will be able to give some more reassurance.

Because there is now an inquiry or an investigation into the Capture process, it obviously cannot be included within the Bill. However, should that inquiry discover that the same sort of faults happened, and the Post Office used the same sort of criminal investigation procedure, could the Minister please explain, hypothetically, what would happen to Capture? Would it require a similar Bill to remedy the position of those postmasters, should they be found to have been incorrectly charged and then convicted? This is important because although there are differences between Capture and Horizon the more that is revealed, the more there are some striking similarities, both in Fujitsu’s denial of glitches and bugs and in the way the Post Office investigation team prosecuted cases.

--- Later in debate ---

[Lord Offord of Garvel (Con)]

I thank the noble Lord for that. My understanding is that, in this case, which is unprecedented, the CCRC will be able to review new evidence in relation to Horizon.

Amendment 15, in the name of the noble and learned Lord, Lord Falconer of Thoroton, is on consequential provision. The Government are satisfied that the current provisions are sufficient to ensure that the Bill can be amended and modified to give full effect to the intentions of the Act. I hope the noble and learned Lord will be happy not to move the amendment on that basis.

Amendment 16, in the name of the noble and learned Lord, Lord Falconer, is on territorial extent. This proposed new clause would require the Government to conduct a review on the application of the Bill to Scotland. The arguments for the Bill’s extension to Scotland have already been explored at length in the other place, where MPs voted against Scotland’s inclusion. Therefore, the Government do not believe that a further review is necessary. I was pleased to see that the Scottish Government introduced their own legislation in the Scottish Parliament to quash the convictions of Scottish postmasters last month. We will continue to support them in that approach to ensure that Scottish postmasters receive the justice they deserve. I hope the progress of the Scottish Bill will satisfy the noble and learned Lord and that he will be happy not to move his amendment.

[Lord Arbuthnot of Edrom (Con)]

Will my noble friend forgive me? I am still thinking about what he said about the Court of Appeal cases. It seems he has changed his mind in the last hour and I wonder what has propelled him to do that.

Post Office (Horizon System) Offences Bill

Lord Arbuthnot of Edrom Excerpts

2nd reading
Monday 13th May 2024 Lords Chamber

[Lord Arbuthnot of Edrom (Con)]

My Lords, I declare an interest as a member of the Horizon Compensation Advisory Board, although I think it has now been renamed the Horizon redress advisory board. It is a genuine honour to be able to follow a speech such as that from the noble and learned Lord, Lord Burnett. I am grateful for what he said and for the immense amount of work that he has put into this most terrible of problems. I want to comment on some of the points that he made during his remarks, but I am grateful to him.

In the face of one of the most widespread injustices in this country—we all know the background—we needed to do something. This Bill is the Government’s answer, and I welcome it. I am extremely grateful to my right honourable friend the Prime Minister, my noble friend the Minister in this House and the Post Office Minister in another place, Kevin Hollinrake, for their astonishingly fast appreciation of the need for urgent, dramatic action and for following it through in this way. I am also grateful to my right honourable friend the Lord Chancellor for having some really difficult discussions, as we have just heard, with the judges about this.

As the noble and learned Lord, Lord Burnett, has told us, the Bill could have gone two ways: it could have gone his way, or the way that it has. The argument in favour of involving the judges, based on the separation of powers, has been carefully set out by the noble and learned Lord. It is an uncomfortable thing—some would put it much stronger—to have the legislature overturning decisions made by the judiciary, because that could form a constitutional precedent, and I accept that it does form a constitutional precedent, which would take us in the direction of totalitarianism.

I will not express a preference between the suggestion of the noble and learned Lord, Lord Burnett, and the Government’s suggestion in this legislation, because this is the Bill that we have, and I am thankful for it. I understand—of course I do—the constitutional difficulty of Parliament overturning judicial decisions: I practised as a barrister, my wife is a judge and I value the separation of powers. But I also value timely justice and the early reversal of some of the greatest unfairnesses that this country has ever seen. I want to set out the arguments against involving the judges, if only for the record. I accept that the points made by the noble and learned Lord, Lord Burnett, deal with many of the points that I will make, but, as I said—and as I know he accepts—we have the Bill that we have.

The Fraser judgments in Alan Bates’s group litigation came out in 2019. The clear consequence of those judgments was that many hundreds of convictions were unsafe. We do not know exactly how many—which is odd—but it was in the region of 1,000. Yet, by the beginning of this year, only a few more than 100 sub-postmasters had even applied to have their convictions overturned. There were several reasons for this. The first and the most important was that too many sub-postmasters wanted nothing whatever to do with a court system that had, in their view, treated them so badly. They had been utterly traumatised and wanted to put the whole ghastly experience behind them. They were simply not applying to have their convictions overturned. They wanted no contact with officials, lawyers, politicians, journalists or anybody else at all, for understandable reasons. Yet appeals rely on the appellant applying, and the current system has no procedure for mass appeals brought by the state itself. I did not quite get to the bottom of what the noble and learned Lord suggested to redress that, but it would have probably been workable. Nevertheless, we have the Bill that we have.

The second reason for not involving the courts was that, in many cases, there is no evidence. In some cases, the Post Office will have taken the evidence away from the sub-postmasters and destroyed it; in other cases, the sub-postmaster himself or herself will have given up and destroyed it; and in yet more cases, the sub-postmaster will have died. To overturn a conviction on the basis that it is unsafe, you need to establish with evidence that it is unsafe. I approve of the suggestion of the noble and learned Lord, Lord Burnett, of a presumption of unsafety, but we have the Bill that we have.

The third reason was that appealing against convictions must be done through several different stages. Appeals go to the Post Office, then to the Criminal Cases Review Commission and then to the court at different levels, with the application of different tests, sometimes leading to different outcomes, which is strange in itself. The noble and learned Lord, Lord Burnett, touched on that.

The fourth reason was that the Court of Appeal overturned only those convictions for which Horizon computer evidence was essential to the prosecution. That was an arguable limitation—although, in my personal view, wrong and unfair—in the earlier stages of the process. However, as the public inquiry has uncovered new facts about the behaviour of the Post Office, I suggest that it is a limitation that is no longer tenable. I tread carefully here because the inquiry has yet to report, but it seems that the Post Office investigators, incentivised as they were to recover money rather than to achieve justice, and the Post Office lawyers, intent on concealing evidence, tainted all the evidence produced by the Post Office in any trial.

The deaths of many of the sub-postmasters makes me remind your Lordships that this is urgent. We have to get on with it, and this Bill does that. The Bill quashes certain convictions and, by doing so, it gives rise to redress being paid to hundreds of sub-postmasters. The Bill does not itself deal with that redress. When people say that only a small proportion of sub-postmasters have received redress, they are right, but that will rapidly change with the passage of this Bill. It is an essential step to getting us to where the country wants us to be.

The question of which convictions are to be quashed is a difficult one, but nothing about this saga is easy. The Bill quashes convictions in England, Wales and Northern Ireland, but not in Scotland. I listened with interest to the suggestion from the noble Lord, Lord Browne, as to how the procurator fiscal could operate in Scotland. The Scottish Government are legislating to achieve something similar; I hope that that can be looked at carefully in Committee.

The quashed convictions under this Bill have to have been prosecuted by the Post Office or the CPS, or by the Northern Ireland authorities, but those prosecuted by the Department for Work and Pensions, for example, are not included. This too will need careful consideration in Committee. Certainly, the DWP will need to give very careful thought to the extent to which it relied on Post Office evidence and investigations, and to consider whether the convictions that it secured were any more safe than those secured by the Post Office and the CPS. Should we consider perhaps in Committee widening the scope of the Bill, so that those convictions too are overturned? I have to say that I do not know. I should very much like to hear why the Government consider that DWP convictions are safe when CPS convictions are not. I should also like to hear what the DWP is doing to re-examine its convictions to ensure that it has not relied upon tainted Post Office evidence and investigations.

Another category of convictions not quashed by this Bill is those that have already been considered by the Court of Appeal. I listened carefully to what the noble Lord, Lord Browne, said about this, and I agree with what he said. There are 13 of these cases. I am very uncomfortable indeed about this, for the following reason. The Bill overturns many hundreds of convictions. The Government accept, as they should, that some of the convictions overturned will in fact have been of sub-postmasters who were guilty of a crime. That is the price that we pay for the exoneration of the innocent. Those who have been in front of the Court of Appeal, in exactly the same way as those sub-postmasters who have been in front of other courts, may or may not be guilty. I do not think it is acceptable to tell them that they can go back to the Court of Appeal if there is new evidence, because other sub-postmasters are not being required to provide individual evidence of their innocence—a reversal of the burden of proof. These 13 sub-postmasters are being punished for their efficiency and courage in being early in taking their convictions to the Court of Appeal.

There is, of course, one new bit of evidence which the Court of Appeal did not consider in relation to these 13 cases: that all the sub-postmasters, other than these 13, are about to be exonerated. It stretches credulity to believe that the Court of Appeal would say that, out of all the hundreds of convicted sub-postmasters, it would choose for these 13 to remain convicted. Can it be fair that they should be the only sub-postmasters in the country to be left with convictions? I cannot see that the Court of Appeal would welcome a new application from them, because how could it consider anything other than the facts of these individual cases? We shall need to consider this very carefully in Committee.

The Government are to be congratulated on their speed and courage in bringing the Bill to us, but I first became involved in this matter in 2009 and Alan Bates did so in 2003. “Speed” is obviously a relative term. Let us get on with it.

Post Office Legislation

Lord Arbuthnot of Edrom Excerpts

Thursday 14th March 2024 Lords Chamber

[Lord Arbuthnot of Edrom (Con)]

My Lords, I declare my interest as a member of the Horizon Compensation Advisory Board. I pay tribute to my noble friend the Minister; to Kevin Hollinrake, the Minister in another place; to his impressive team of civil servants; to the Government in general; to Alan Bates; to ITV; and especially to Alex Jennings, of course. But, before this turns into an Oscars speech, we must acknowledge that there is much to be done.

I just want to raise one matter: those excluded from this legislation. I understand that the Government do not want to go head to head with the Court of Appeal, but some people have been excluded through the accident of fate—they have been refused permission to appeal or have had their convictions not turned down by the Court of Appeal. Will the Government encourage and, if necessary, resource and facilitate, those people who are expressly excluded for those reasons from this legislation? Will the Government encourage them to go back to the Court of Appeal for their convictions to be reconsidered? It would be quite wrong if these sub-postmasters were, through that accident of fate, the only sub-postmasters in the country to continue to have convictions against their name.

[Lord Young of Norwood Green (Lab)]

My Lords—

Horizon Scandal: Psychological Support Services

Lord Arbuthnot of Edrom Excerpts

Monday 4th March 2024 Lords Chamber

[Lord Offord of Garvel (Con)]

I thank the noble Lord for that. As far as parliamentary business is concerned, it is planned to have the legislation go through both Houses and have it all done by the Summer Recess. That is in process, and there are more announcements to follow shortly. In relation to the claims, as I have said before, 78% of claims are now settled, and compensation has been paid to 93% of postmasters, some on an interim basis. As I said in the Chamber last week, we can go only as quickly as we receive the claims. We are at the most difficult end of the claims now. For example, with the GLO 477, we have had 58 claims, of which we have settled 41. We can go only as quickly as the claims come in, and we have guaranteed that we will work to get 90% cleared within 40 working days.

[Lord Arbuthnot of Edrom (Con)]

My Lords, I declare my interest as a member of the Horizon Compensation Advisory Board. I am troubled by the Answer my noble friend has given, because how can a family member, as opposed to the sub-postmaster themselves, claim for compensation or psychological help? Many of these families have broken up. Does my noble friend agree that the mere fact that there may be a lot of family members entitled to help or compensation should not of itself be a reason for denying them that help or compensation?

[Lord Offord of Garvel (Con)]

I thank my noble friend. I once again pay tribute to his continual scrutiny of this matter, and his vital role on the advisory committee. Currently, the compensation is directed to each claimant—a postmaster or postmistress—but the whole point of having the advisory committee is to have live discussions on this. I encourage him, in that capacity, to keep those discussions going.

Post Office: Executive Remuneration

Lord Arbuthnot of Edrom Excerpts

Tuesday 27th February 2024 Lords Chamber

[Lord Johnson of Lainston (Con)]

Again, I am very grateful for this challenge; it is a very important discussion to have. The Government are responsible for setting remuneration for the board, while the bonuses that I think the noble Lord, Lord Sikka, was referring to relate to the Post Office executives, so we should separate the two. Both still need to be investigated—absolutely. I do not have the specific answer to the question relating to the Chief Secretary to the Treasury, but I will be delighted to write to the noble Baroness.

[Lord Arbuthnot of Edrom (Con)]

My Lords, either the Post Office is an independent arm’s-length organisation, or it is one for which the Government are fully responsible. Does my noble friend agree that the Post Office Horizon scandal shows that never again should Ministers refuse to answer questions relating to a body in which they own all the shares?

[Lord Johnson of Lainston (Con)]

I pay tribute to my noble friend for the astonishing work he has done on this great travesty. I am very grateful to him personally for driving this agenda, and I agree in principle with some of the comments he has just made. There seem to be an air gap between arm’s-length bodies, the Government and Ministers. It is very important that this situation allows us to review exactly how the principle of arm’s-length bodies functions, in the sense that it does not mean they are entirely out of Ministers’ or the Government’s remit and our lines of inquiry. Noble Lords would expect that of us. They remain within reach, and the inquiry will allow us to have a significant investigation into how culture and practices can be improved in the governance of such institutions.

Post Office Horizon: Compensation and Legislation

Lord Arbuthnot of Edrom Excerpts

Tuesday 27th February 2024 Lords Chamber

[Lord Arbuthnot of Edrom (Con)]

My Lords, I declare my interest as a member of the advisory board, which is now meeting not exactly in continuous session but every few days.

The Post Office itself is under investigation by the police. Is it not quite inappropriate for the Post Office to express any view as to the correctness of overturning convictions and is it not quite wrong, coming back to the point made by the noble Lord, Lord Fox, for it to have any position or play any part in the compensation process?

[Lord Johnson of Lainston (Con)]

I am grateful to my noble friend and pay tribute to his work. The Post Office will not play a role in deciding the correctness of the overturned convictions in the Bill; that will be a matter for the Government. The statement about the Post Office paying compensation is well heard. I am grateful for that and I hope I have made the point that the Government continue to look into it. Having said that, the Post Office has paid a very large quantum of compensation payments—several thousand, I think. It would be extraordinary if the team there were not completely aware of the need to ensure that they get this right, I hope including significant cultural change. There has been a wholesale change of individuals on the board of directors since 2021 and 2022. Currently, the important thing is to get the compensation payments paid and, in parallel, review how the process is working.

--- Later in debate ---

[Lord Johnson of Lainston (Con)]

I thank the noble Lord, Lord Fox, for those comments. I should say that the Government have full confidence in the CEO and in the board whom we have appointed over the last two to three years. I am told they are extremely grateful for the services of the government representative and the UKGI representative. There are two postmasters, who I think are elected to the board, so it is a diverse board that represents the interests of the Post Office. Its members are not tarnished, as it were, by previous activities, and they have been doing a good job in responding to what can be described only as a crisis.

I echo the noble Lord’s points. The Post Office personnel are the absolute core of the business, of many communities and of this country, and it is agonising to see them put through so much distress. I agree with the comment made, I think by a colleague of mine, that in some respects the sheer greatness of our Post Office staff around the country has been magnified by this event, and I am sure that more of us will use our local services when we get the opportunity. This has also drawn a lot of attention to the needs of the postal service around the country, the conditions that its employees work in and the opportunity to improve them, with more recruitment and more people entering the Post Office service. I totally support the noble Lord’s aim; it is a magnificent organisation in its principal core ambitions of delivering great service to communities. The people who work there should be celebrated, and we certainly do that.

[Lord Arbuthnot of Edrom (Con)]

May I come back on a point that was raised by the noble Lord, Lord Browne, about the declaration that is to be signed by those whose convictions are overturned? I am not sure that I understand this declaration. If you have signed accounts which you know to be wrong and yet you have had your conviction for false accounting overturned by the Court of Appeal on the basis that it is an affront to justice, do you sign something saying you have not committed false accounting when maybe you have? I do not understand this declaration.

[Lord Johnson of Lainston (Con)]

I thank my noble friend for raising that point. The signing of the form saying that you are innocent is not to do with the conviction being quashed but is in order to receive compensation. The Government do not think that it is unreasonable, and I hope noble Lords would not think it is unreasonable, that there is an element of a threshold for people to say that they were not guilty of a crime and that they deserve their compensation. The nature of the application alone should probably cover that. It is a very sensible move to make, and I do not think it distorts the process. However, clearly, these are live conversations and we will have them in more detail.

Post Office Governance and Horizon Compensation Schemes

Lord Arbuthnot of Edrom Excerpts

Wednesday 21st February 2024 Lords Chamber

[Lord Arbuthnot of Edrom (Con)]

My Lords, I declare my interest as a member of the Horizon compensation advisory board. Of course, if you are a sub-postmaster, you do not really care who said what to who. There are two questions that a sub-postmaster would be interested in: when will the compensation be paid and when will the convictions be overturned? As for when the compensation will be paid, I would like to pick up a question raised by the noble Lord, Lord McNicol; namely, the accounts. In which department’s accounts is the £1 billion that it is expected will be paid out in compensation to the sub-postmasters? I hope it can be found in some department’s accounts. As to the convictions, this is an interesting Statement, but when can we expect a Statement on precisely how those convictions are going to be overturned and when can we expect a Statement on the legislation to come before both Houses?

[Lord Offord of Garvel (Con)]

I thank my noble friend Lord Arbuthnot. I will take the second one first: there are live conversations going on right now, at great speed, to finalise the legal process with the Ministry of Justice, which will result in the overturning of all the convictions in England and Wales by an Act of Parliament, excepting that there may be some small number of people who, in fact, have had legal or safe convictions, but they will be overturned—as we discussed before—because the greater good is to wipe the slate clean as quickly as possible. That will be coming to this House in short order, and I imagine there will be unanimous support for that.

As for the timing and the finance, the finance for this will come ultimately from the Treasury. The Treasury has been funding DBT, in order for it to fund the Post Office, and, in the course of last year, under the chairmanship of Henry Staunton, £253 million was paid by the Treasury, via DBT, to Post Office Ltd, of which £150 million was for the compensation schemes—and £160 million has now been paid—and the £103 million was for the replacement of the Horizon system. There are regular funding lines going to the Post Office via DBT.

This money has been ring-fenced and identified by the Government—it sits within the Treasury—but we have also had conversations in this House about the fact that there may be some other sources of compensation to be had from other places, and why it should not necessarily be just the taxpayer who picks up the bill for this when there are perhaps other stakeholders involved in this sorry saga who should pay their part. It may well be that that the taxpayer can be relieved of some of the £1 billion ring-fencing because it may be that we can get other sources, not least Fujitsu, to pay for that.

The commitment given by my department—we are working flat out on this—is to get 90% of the claims processed and settled within 40 working days. There is no going back from that; as we have said before, 78% of postmasters and postmistresses—a figure of 2,270—have been fully paid and settled. We are now at the sharp end of this process for those who were treated the most egregiously. Therefore, those cases are more complex, and perhaps need more time—not demanded by the Government—for the process of how they put their claim together. We have a situation where it is openly known that Mr Bates has submitted his claim and is not happy with the response: that is part of the process that we are in, and it will go on. We will move as quickly as we can to make sure that everyone is restored to the position that they should be in.

Post Office Appointments: Ministerial Responsibility

Lord Arbuthnot of Edrom Excerpts

Wednesday 7th February 2024 Lords Chamber

[Lord Offord of Garvel (Con)]

I thank the noble Lord for that. The whole House shares the noble Lord’s sentiments that this is a deeply shameful episode, which went on for over 20 years. It is quite incredible to think back on the scale of the failure here, both of governance and of corporate life. Since the Horizon scandal came to light, the Government have taken quite a lot of steps to strengthen the governance of the Post Office. However, there are a number of ongoing reviews, including one by Simmons & Simmons, to look at exactly how the appraisal system works. Once the Wyn Williams review—a statutory inquiry—has concluded, we will be able to take steps around corporate governance going forward.

[Lord Arbuthnot of Edrom (Con)]

My Lords, in an arm’s-length organisation, to whom in practice is the chief executive accountable? Is it the department’s Permanent Secretary?

[Lord Offord of Garvel (Con)]

I thank my noble friend for his question and for all his efforts on behalf of the postmasters. We have to realise that this is a limited company owned entirely by the Government, with one share owned by the Secretary of State. It separated from Royal Mail Group when that went private, but the Post Office is actually classified as a public non-financial corporation. Public corporations include, for example, Ordnance Survey, Royal Mint and British International Investment. They are typically owned by the appropriate Secretary of State in that department, the reason being that they are hybrid: the Post Office has commercial activity, it makes revenue through the post offices, but it also receives public money to support the network. As a result, the governance is such that the chief executive reports to the chair, the chair reports to the Secretary of State, and the chief executive also reports to the Permanent Secretary when it comes to public money.