Thomas Cook

Debate between Liz McInnes and Grant Shapps

Wednesday 25th September 2019 Commons Chamber

[Grant Shapps]

I am interested to hear that the hon. Gentleman’s constituents say that, because the accounts clearly show that the company lost £1.5 billion within a six-month period alone, and then issued a further profits warning. There is obviously a lot of detangling of the business to be done. As the hon. Gentleman will understand, the Government are not in the business of running a travel company, but we do want to ensure that whatever went wrong here is properly investigated and we will certainly ensure that that happens.

[Liz McInnes (Heywood and Middleton) (Lab)]

The Secretary of State talks about throwing good money after bad, but surely it would have been better for British business if Thomas Cook had been bailed out, rather than spending millions of pounds on repatriating holidaymakers.

[Grant Shapps]

I mentioned the £900 million Fosun deal that eventually fell through to indicate the extent of the money required just to keep the business afloat. That was the deal that was on the table while this was all going on. It then turned out, at the eleventh hour, that even Fosun was not happy to go with a deal, because it had concerns. A new number then started to emerge: an additional £250 million. Any rational person—including, incidentally, the accounting officers throughout Government —would have looked at the deal and refused to sign off such a payment. I am absolutely certain that anyone looking into this matter in detail will demonstrate that the deal would have been a very poor move for the taxpayer, and that it would probably have led us to exactly the position we are in today of repatriating 150,000 people—yet having spent up to £250 million of taxpayers’ money as well.