Post Office Horizon Scandal: Compensation Payments

Debate between Lord Stirrup and Lord Offord of Garvel

Monday 19th February 2024 Lords Chamber

[Lord Offord of Garvel (Con)]

The Government are a shareholder, and there is only one shareholder in this company, if you can call it a company—I have never come across a company that has only one. Therefore, the Secretary of State is exercising her shareholder right to reorganise the board of this company to make it fit for purpose to make sure that this does not happen again. In the meantime, the Government, through the Treasury, provided the thick end of £1 billion to pay compensation. The Government also committed to taking full recourse against Fujitsu in due course. In the meantime, a statutory inquiry, with statements being taken under oath, is ongoing. When the truth has emerged, there will be a price to pay.

[Lord Stirrup (CB)]

My Lords, in answer to an earlier question, the Minister said that £150 million of public money has been expended correcting the system. Why is it not £150 million of Fujitsu’s money? Will whatever expenditure the Government have made in putting things to rights be extracted in due course from Fujitsu?

[Lord Offord of Garvel (Con)]

That is absolutely the case, and my colleague in the other place, Minister Hollinrake, has made it very clear that we will pursue Fujitsu for its share of the compensation. It is not right that the sole payer of the compensation should be the taxpayer.

Post Office Appointments: Ministerial Responsibility

Debate between Lord Stirrup and Lord Offord of Garvel

Wednesday 7th February 2024 Lords Chamber

[Lord Offord of Garvel (Con)]

I thank the noble Lord for that question. On the specifics, I will write to him on the actual timeline, but the reality is that Fujitsu knows it has a major part to play here. It knows that it is under serious investigation. It has pre-empted that by coming out and saying that it feels a moral responsibility. My colleague, the Minister in the other place, has made it very clear that the cost of this debacle cannot land purely on taxpayers and I am sure there will be a very full investigation and compensation required from Fujitsu.

[Lord Stirrup (CB)]

My Lords, further to the question from the noble Lord, Lord Forsyth, when in an earlier Question Time I asked the Minister whether the Post Office brand was not now too toxic for it to continue as currently constituted, the Minister replied that, in his view, the brand image of the Post Office had improved as a consequence of what had happened. Now, while the reputation of the people who run sub- post offices has no doubt been greatly enhanced, to suggest that of the reputation of the organisation which so cruelly and illegally persecuted them cannot possibly be true. So I repeat what I asked then: is it not now time for a wholly new organisation, with new leadership and a new business model incorporating the appropriate ethical principles?

[Lord Offord of Garvel (Con)]

I thank the noble and gallant Lord for his question. To clarify my remarks, last time I said that the reputation of the postmasters had been enhanced and most people in the community think of the Post Office as being the postmasters. In the last 12 months, the churn of postmasters—those leaving and those coming in—has gone up. We have a record number of post offices—11,700—in the country; 5,000 of those are in rural areas and one-quarter are the last shop in the village. They form a vital role in the community and, as I said before, the reputation of the postmasters has only been enhanced by this sorry tale.

Alan Bates and Others v Post Office Limited

Debate between Lord Stirrup and Lord Offord of Garvel

Wednesday 24th January 2024 Lords Chamber

[Lord Stirrup (CB)]

My Lords, is it sensible for the Post Office to even continue in business as presently constituted? Is it not now a totally and irredeemably toxic brand? I personally would not trust the Post Office if it told me that today is Wednesday. As well as holding individuals to account, as owners, should the Government not look at a fresh start with a new brand, new leadership and a new business model incorporating the appropriate ethical principles?

[Lord Offord of Garvel (Con)]

I thank the noble and gallant Lord. That is exactly what the outcome will be. No prosecutions have been brought since 2015. The board has been reconstituted. There is a new chief executive, a new Postal Minister and new oversight. I take issue with the view that the Post Office brand is irredeemably damaged, because I believe the Post Office brand is based on the 11,500 postmasters and, if anything, their reputation has been enhanced by this. The reputations that have been damaged are those of management, directors and perhaps Ministers.