Post Office Horizon Scandal: Compensation Payments

Lord Touhig Excerpts

Monday 19th February 2024 Lords Chamber

Asked by

[Lord Touhig]

To ask His Majesty’s Government what assessment they have made of claims that the Post Office was asked to delay compensation payments to sub-postmasters who were victims of the Horizon IT scandal.

[The Parliamentary Under-Secretary of State, Department for Business and Trade and Scotland Office (Lord Offord of Garvel) (Con)]

I thank the noble Lord for that Question. I can utterly refute this allegation. This Government have sped up compensation for victims and have consistently encouraged postmasters to come forward with claims. To suggest that any actions or conversations happened to the contrary is incorrect. In fact, upon appointment, Mr Staunton was set concrete objectives in writing to focus on reaching settlements for claimants—clear evidence of the Government’s intent. My right honourable friend the Secretary of State for Business and Trade will shortly give an update to the House of Commons with a detailed rebuttal of these allegations.

[Lord Touhig (Lab)]

I thank the Minister for the point that he makes about the Statement in the other place. I am sure that this whole House will welcome it being repeated in this House later in the week. Mr Henry Staunton, the former chairman of the Post Office, said that he was told by a “fairly senior person”—his words—to stall on compensation payments to Horizon victims. The Sunday Times yesterday said that the Government utterly refuted these allegations, and the Minister has repeated that today. To make this statement with such confidence, obviously the Government will have had to fully investigate the matter, and I am sure that the Minister would want to confirm this. Can the Minister tell us who carried out this investigation and whether Mr Staunton was approached and asked for the name of the person he said had told him to stall the compensation payments? Can the Minister confirm that the Government will provide a full copy of the investigation report on the Post Office Horizon IT inquiry?

[Lord Offord of Garvel (Con)]

The sadness about this is that the Secretary of State said that she did not want to conduct HR in public, and this is now the situation that we have got ourselves into. We are very clear that no civil servant made that statement; perhaps it is up to Mr Staunton to provide a name, and we can then investigate whether that was the case. In the meantime, it does not make sense, given that the Post Office has been fully funded for compensation already—before the programme “Mr Bates vs The Post Office”, two-thirds of postmasters had had their claims met in full. Indeed, of the £160 million paid out so far to sub-postmasters, £138 million was paid out by December, before the television series. Therefore, it was fully funded, and there is no basis for the allegation.

Post Office Appointments: Ministerial Responsibility

Lord Touhig Excerpts

Wednesday 7th February 2024 Lords Chamber

Asked by

[Lord Touhig]

To ask His Majesty’s Government what responsibility ministers have for the appointment of the Board and Chief Executive Officer of the Post Office.

[The Parliamentary Under-Secretary of State, Department for Business and Trade and Scotland Office (Lord Offord of Garvel) (Con)]

My Lords, I thank the noble Lord for his Question. As set out in the Post Office’s articles of association and shareholder relationship framework document, the Secretary of State for Business and Trade appoints the chair and directors of the Post Office and approves the appointment of the chief executive officer. Strong and effective leadership of the Post Office is a necessity and the Government therefore take their role in making the right appointments very seriously.

[Lord Touhig (Lab)]

My Lords, I believe that the shortcomings of the Post Office board and senior executives were responsible for this unparalleled injustice. Last week, the Minister said that the Government were looking at tightening the governance of the Post Office. Can I suggest that one way of doing this would be for the Ministers making the appointments to also ensure regular appraisals of those they have appointed? After all, who among us in this Chamber has not gone through an appraisal at some time? If such an appraisal scheme already existed, perhaps sub-postmasters across Britain would not be in despair, feeling that they were—I think of the words of Toby Jones, who played Mr Bates in the TV drama—the “skint little people” who are

“fighting a war against an enemy owned by the British Government”.

[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.

Tata Steel: Port Talbot

Lord Touhig Excerpts

Tuesday 19th September 2023 Lords Chamber

[Lord Johnson of Lainston (Con)]

Again, I appreciate very much the questions on this extremely sensitive and complex area. It is not the Government who run Port Talbot steelworks or Tata Steel, so I am not able to give a specific figure. We are projecting that at least 5,000 jobs have been saved through this move, and we think that tens of thousands of other jobs will be created through the release of land and the transformation of Port Talbot and the freeport area. I hope that that gives the noble Baroness some security.

[Lord Touhig (Lab)]

My Lords, perhaps I misunderstood, but the Minister seemed to suggest that it was not possible to engage with the workforce before this announcement because there was some sort of commercial sensitivity. What commercial sensitivity would have been at risk from telling the workers that there were to be substantial job losses? Following the comments made by the noble Baroness from the Liberal Democrat Benches, the Minister has now engaged on working with the Welsh Government. Do the Government have a specific package of proposals that they intend to put to the Welsh Government to work in partnership to find new and alternative employment for the people who will be made unemployed in that part of Wales?

[Lord Johnson of Lainston (Con)]

I thank the noble Lord for a point well made. The Welsh Government and the UK Government are working together on a transformational transition board. Forgive me for not having the specific nomenclature for it, but it is a collective group led by the UK Government, with participation from the Welsh Government, to ensure that there is strong transition for the people and communities most affected. That includes £100 million, with a substantial contribution from Tata, to ensure that there is money available for that transformation and the transition for the affected individuals and communities. That is a very important commitment. As I said, if we look back 40 or 50 years, it was perfectly reasonable for the charge to be raised that there was not enough done to allow communities and individuals to transition properly from one industrial position to another—that is something that we will not allow to happen. It is absolutely essential that we work closely with the Welsh Government; I see this as a partnership between the two Governments of the UK and Wales. As I responded to the noble Baroness, this is the exact benefit of a strong United Kingdom and a strong union.

I will return again to the point raised about the consultation process on this commercially sensitive and complex arrangement. It is impossible to know what the ramifications of a transformation will be until you have decided what the funding and financing behind it will be. Tata is investing over £1 billion in this transformation programme and the UK Government are putting in £500 million. Until that had been confirmed, it would have been impossible—noble Lords must surely realise this—to know what the future of the site and its industrial capability would be, and, as result, what the projections on the consultations for employment would be. I have great sympathy with both the Government and Tata for making sure that there was a high degree of confidentiality around the specific deals. But make no mistake: this discussion has been going on for a decade and the outcome is no surprise to anyone in this House or in Port Talbot. What is a delight and to be celebrated is that we have come to a decision; people no longer have to worry about a decision that has not been taken. Now we can get on with the job of delivering a transformed Port Talbot steelworks, a strong partnership with Tata and a very strong partnership between the UK Government and the Welsh Government.