Post Office (Horizon System) Offences Bill

Duncan Baker Excerpts

2nd reading
Wednesday 20th March 2024 Commons Chamber

[Sir David Davis (Haltemprice and Howden) (Con)]

I hope the Secretary of State will not take this amiss and will understand that I mean no criticism of her or her Minister of State, or indeed his predecessor, my hon. Friend the Member for Sutton and Cheam (Paul Scully), when I say that the Bill represents the best of a bad job. Everybody has said it already; there is a difficult trade-off between natural justice and a fast, low-stress solution for the postmasters. That is what this Bill attempts to achieve.

That being said, it is not the way I would have done it. It is not what I would have proposed. The courts should and could have considered all the cases in which the convictions were based on Horizon evidence in one set of proceedings. I took senior legal advice on this; it would have been perfectly possible to take three or more former Supreme Court justices out of retirement, give them a courtroom and task them to deal with this in three months. They could have bracketed very similar cases together—there would have been hundreds in those categories—and then they could have focused on the ones that were really difficult. Regrettably, it is rumoured that the judiciary itself rebuffed that course of action, which I think was unwise and plain wrong. As the right hon. Member for North Durham (Mr Jones) pointed out, the judiciary has a responsibility, too. That is why we have gone this route, and I have every sympathy with what Ministers are trying to do.

Even so, the Bill still risks lumping the genuinely innocent majority with a very small potentially guilty minority. Each difficult case could have been dealt with on its individual merits rather than abandoning due process in the rush to bring this disgraceful episode to a close. We got into this situation by failing to follow proper processes, and I am wary that the Government, almost by default, are again failing to follow proper process to extricate themselves from this historic mess.

Despite my misgivings, I will not stand in the way of the Bill, because it will serve the vast majority of postmasters to secure justice for them. For that reason, I will support the Bill. However, that is not to say that the legislation will not continue to create problems of its own. I recommend that Members read some of the early reports before Report stage. The BAE Systems Detica report, which everyone should read, is a six-month review of the Post Office’s fraud and non-compliance issues in 2013. It paints a picture of complete chaos in the Post Office’s accounting systems—not just Horizon but all the accounting systems. Over a decade ago it was known that:

“Post Office systems are not fit for purpose in a modern retail and financial environment”.

Note that it refers to “systems”—plural—not just Horizon. The report goes on to say that ATM—cashpoint—accounting was clearly flawed and that

“removing the ATM reduces the risk of SPMR being suspended”.

By SPMR the report means sub-postmasters, and I am afraid that suspended means persecuted, as that was outcome. That was not Horizon related.

That matters because dozens have come forward to raise concerns over a second IT system used by the Post Office, called Capture. Again, documents show that Capture was known by the Post Office to have issues early on. The culture of denial in the Post Office over the decades is truly extraordinary. The Bill will exclude people who have already had their appeal cases heard and rejected. Those rejections may well have occurred because the evidence that the appeals were based on was not Horizon but some other failure of the accounting systems. We must be careful not to give up once we pass the Bill, but to see if we can also absolve people who are not guilty because of the wholesale chaos that existed.

[Duncan Baker (North Norfolk) (Con)]

rose—

[Sir David Davis]

I give way to probably the best-informed man in the House on this matter,.

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[Duncan Baker]

My right hon. Friend makes a good point: the Post Office main accounts would have had debtors saying that they were owed money—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Will the hon. Member please face the Chamber, so that the whole House can hear him?

[Duncan Baker]

My apologies. The debtors would have said that those innocent sub-postmasters owed the Post Office corporate accounts what we now know to be tens of millions of pounds. But they were wrong—that was fictious and they were not owed that money. Will we ever get to the bottom of that and restate the Post Office’s accounts, which must have been materially wrong year after year throughout that period from 2010?

[Sir David Davis]

My hon. Friend has more experience of this issue than anyone, and he reinforces my point. Frankly, if I had a magic wand I would force the Post Office to re-audit every set of accounts for the last 20 years and give back the money, but that will not happen: it would drag on forever, and we know the stress that it is causing postmasters even today. My worry is that we may feel at the end of this process that we have solved the problem, but there will be some—perhaps only dozens or hundreds, not thousands—who will be left not absolved or exonerated, but who deserve to be. That is the risk of this approach.

--- Later in debate ---

[Duncan Baker (North Norfolk) (Con)]

It is a great honour to follow the right hon. Member for North Durham (Mr Jones) and that poignant ending, with which we all empathise. He has done an enormous amount get us to this point, and I thank him for it. There is no doubt that today is a very good day. It has been brought about by the Secretary of State, Ministers past and present—they are not show ponies at all—the Prime Minister, particularly through his actions at the beginning of this year, and the chair of the APPG, the hon. Member for Motherwell and Wishaw (Marion Fellows). I have worked with her many times, and I thank her for all her work.

All those people must take credit for where we are, but it has taken an awfully long time. The Minister was right that an awful lot of work has gone on behind the scenes to get to this moment. Equally, I have total empathy with the comments I receive from members of the public that it should not have taken the turbocharging of an ITV drama to put right this scandal when people across the United Kingdom knew that the situation was utterly wrong. I sometimes wish that there was as much palpable anger in our communities about other scandals as there is about what has happened to sub-postmasters, so that we could fix some of those problems.

Let us not be too critical, however. We should applaud today’s lifting of the barriers, by quashing convictions, to speed up the compensation that is due to people. As has rightly been said across the House, the judiciary will raise concerns. That is only to be expected, but I conceptualise this as an unprecedented situation that requires an unprecedented solution. The odd conviction that was warranted may slip through the net, but this has been going on for more than 15 years. As has also been said, we must not let perfection be the enemy of the good; that sums up the whole predicament and issue fairly well.

Being a new MP in this place—albeit not such a new MP any more—and being able, by quite some accident, to talk about the matter with a degree of personal feeling has been a great privilege. I never expected that in 2014 I would become a sub-postmaster for a company that had purchased a supermarket with a post office in the back of it, or that in 2015 Budgens of Aylsham, which was the post office that I was the sub-postmaster for, would become the best post office in the entire country. I am very proud of that, and it has meant that my speaking about this issue has picked up quite a lot of attention. It has been a real privilege to bring my voice to the campaigning. I suspect that I will probably be the only serving MP who has been a sub-postmaster for the foreseeable future.

What brings the debate home to me is that I could so easily have been caught up in this problem. Had we purchased that supermarket a couple of years beforehand, I could have been suffering the consequences faced by so many of the men and women we are representing this afternoon. I still remember my stepfather wandering into my office and saying, “Well, you’re the finance director, Duncan. You will be the nominated legal sub-postmaster.” We thought very little of it, other than when I was given a postman’s hat at the staff Christmas party. I remember going on the Post Office training courses. Without a shadow of a doubt, the people I met were always good, decent, law-abiding citizens—the sort of people we saw in the drama documentary and about whom we have spoken so often. Every single one of us in the Chamber this afternoon will have constituents who have been caught up in this matter.

The right hon. Member for North Durham talked about people being traumatised; that is absolutely true. In the past three or four weeks, I have sat with a lady who ran a post office in my constituency. She said, “Duncan, I have seen you on the television. Will you come round and talk to me? I was running a village post office. I haven’t been able to sleep for years because I lost money, and I want to know whether I could be recompensed.” The Minister was incredibly helpful. He immediately gave me all the links for where I could help that lady. She and I sat down and went through her books and records for the best part of an hour, totting up a few of her columns. At the end of that process, I said, “I want you to sleep better tonight. I do not think you have lost any money; I think that you are one of the lucky ones. You may have had some losses in one year but gains the next because the system just did not work.”

[Mr Jones]

We need to get that message out. I have quite a few cases in which people were not prosecuted, but they put money—a lot, in some cases—back in. The hon. Gentleman just spoke about ensuring that people come forward to get redress, and that is important. Some feel that they are not victims because they were not prosecuted or did not lose their livelihoods, but I have one case in which someone put in £80,000 over a period, and those people need redress.

[Duncan Baker]

The right hon. Member is absolutely right. The people watching this debate, or reading a report about it, must always remember that they can come forward, seek redress, and get help and support. If all else fails, contact your local MP. Most of us just want to help the communities and the people we are so privileged to represent. I entirely take his point.

I was very lucky in the case of the woman I was dealing with. I could say, “You can sleep easy tonight, because you are one of the lucky ones. The system did not work properly.” That closure—being told that—lifted a weight off her shoulders. We in this place often have the ability to open doors that people cannot open themselves. I was so pleased to be able to help.

That lady represents what we keep talking about. Sub-postmasters and mistresses were pillars of their community. Everybody in their village or town knows that those people were criminalised and simply not believed. That is where the whole of this sorry period started. In the business that I ran, I remember being incredibly worried, when the tills went down, that we had lost money. I knew one thing for sure: the staff were not taking money. I trusted them entirely.

The problem was the culture at the Post Office, which had become a corporate beast. It was losing its soul in the early 2010s, when there was an enormous push to be a stand-alone organisation, to not be reliant on the Government, and to sell, sell, sell financial products. I remember going to a 2016 Post Office conference and meeting Paula Vennells. The irony is that the conference was called “Together”, but while it was going on, hundreds of men and women up and down the country were being convicted for crimes that they had not committed. That is not very collegiate.

The legislation may not be perfect.There are Department for Work and Pensions convictions that I have taken up with the Minister that are not included in the Bill, and I know the reasons why—or his explanations. That does not mean that I do not support what we are doing today, but I certainly want to say this: we are not there yet. I think this whole situation is going to run and run for many years to come.

I do not say that light-heartedly, because I think that real closure for people up and down the country does not just mean compensation and convictions being quashed; it means criminal prosecutions of those within the Post Office who knew what had happened, but did not take the actions that they should have taken. I suspect we will see those prosecutions come forward in the years to come. I have probably said seven or so times in this place that Fujitsu needs to face some real questions. Of course, it will—it has already accepted that it will contribute compensation—but how on earth could a piece of software written by a multibillion-pound corporation have had a back door into it with no audit trail, through which somebody could simply alter figures? That is absolutely frightening. As I mentioned before, it prompts questions about the accounts of the Post Office and its auditors. So many problems will never be fixed.

As I have also said many times, I want a figure for how much money was stolen from all of those innocent sub-postmasters. Nobody has ever been able to tell me what that figure is.

[Mr Jones]

Or where it went.

[Duncan Baker]

Or even where it went. We could add up the figures that were taken off innocent men and women in the ITV drama alone, but across the country, I suspect it was tens of millions of pounds—possibly even more than £100 million. That figure needs to be identified, so that we understand the full scale of what happened here. Of course, the inquiry will conclude later this year, which will finally give us some real evidence of what went wrong.

Although I have summed up by saying there are still many questions to answer, we must remember that today is a very positive day for many, many people who are watching who were caught up in this situation. I say again, and place it on the record, that it is nice when the House comes together. There are a great number of people in the Chamber this afternoon who have done an enormous amount of good, and can hold their heads very high that we have got to this place today.