Thomas Cook

Alan Brown Excerpts

Wednesday 25th September 2019 Commons Chamber

[Grant Shapps]

May I start by paying tribute to my hon. Friend, who has been working very hard through the last few difficult days with people from Peterborough who have found themselves without work? He has done tremendous work with his community to support all those who have lost their jobs. There are 630 jobcentres running the rapid response service that has been mobilised to pick up this issue for every single former Thomas Cook employee who has lost their job as a result of this appalling news. I should say that the best thing we can do is to make sure that we operate an economy where there is record high employment and record low unemployment, because that will give people the best opportunity to get back into a good job.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

I thank the Secretary of State for advance sight of the statement. I pay tribute to the work of the CAA and to the Thomas Cook employees who have gone above and beyond to help stranded holidaymakers. I express my sympathies for all those who have lost their jobs.

Instead of the UK Government using the mantra that this is the biggest peacetime repatriation, they should be apologising for this collapse happening on their watch. The Secretary of State spoke of reforms and new legislation that are required to stop this happening again with another company, but why were lessons not learned from the collapse of Monarch just two years ago? What are the timescales for the new legislation? I point out that, procedurally, a new Session is not required for legislation. The Government could bring it forward if they wanted.

Will the Secretary of State explain the position with Spain and Turkey, and the fact that they were looking at ways to keep Thomas Cook trading, while the UK Government were not willing to? The German Government led the way in keeping Condor going.

The Secretary of State said that £250 million would have been good money after bad, but what discussions did the Government have with Thomas Cook and what financial appraisal did the Government make before saying that they could not fund that money? This is a Government who can find £100 million to advertise that Brexit is good for us. I think they should spend that money on supporting jobs instead.

Will the Secretary of State explain what impact Brexit had on the collapse of Thomas Cook, because it warned about the impact of Brexit? What impact did the collapse of sterling have on the company’s trading position? What assessment have the Government made of the pension liabilities of Thomas Cook? What plans do the Government have to curb outrageous executive pay, given that close to £50 million has been taken out of Thomas Cook in recent years?

I welcome the update on the holidaymakers in Cuba, but are any other holidaymakers effectively being held to ransom or captive? What discussions are the UK Government having with foreign Governments when such ruthless actions are taken?

Thomas Cook vouchers are now worthless. When will the Government finally implement the scheme to protect vouchers and gift cards when companies become insolvent?

What actions are the Government taking to support the 13,000 employees who are still abroad?

Finally, I have constituents who have lost their jobs. Can the Secretary of State look my constituents in the eye and honestly say that there is nothing more the Government could have done to save their jobs?

[Grant Shapps]

I should have picked up the point about Thomas Cook employees abroad in answer to a previous question. We are actually bringing back some of those people, starting with the crews and the operational people. I think I am right in saying that yesterday we had brought back about 150 so far. We are not ignoring them, but we need to bring passengers back first. I have asked the CAA to be as flexible as possible in bringing back Thomas Cook employees, and the hon. Gentleman is right to remind me that I had not mentioned that before.

The hon. Gentleman asked a number of other questions that I have previously answered, and I do not want to go round in circles. The House must know that no Government would want to lose an iconic, 178-year-old famous British name. I hear people ask, “Why don’t you just put the money in?” All those people have to do is open the books to realise that there is a £1.7 billion debt, with £1.5 billion lost in six months alone, and that another profit warning had been issued.

I am afraid that this situation is entirely different from that with Condor, which is a fundamentally profitable airline, and it just would not be responsible to throw good money after bad. We would probably be back here in a very short time to offer a bail-out to get people home, rather than to bail out the company. This company just was not a going concern with which we could do that.

The hon. Gentleman asks sensible questions about whether other holidaymakers are being held to ransom or being held captive elsewhere in the world, and I am not aware of any other location in which that is the case at the moment. However, it is a live and moving situation, and under our direction the CAA has been issuing proactive letters to explain that holidaymakers’ bills will be settled in places where some hotels have not had bills settled for the past three months because of the company’s bankruptcy. I pay tribute to and thank our foreign mission in Cuba for proactively getting in touch with Ministers yesterday to resolve that appalling situation.

I think that covers the majority of the questions that I had not previously answered.