Thomas Cook

Lord Balfe Excerpts

Wednesday 25th September 2019 Lords Chamber

[Baroness Vere of Norbiton]

My Lords, I fear that the noble Lord is making the wrong comparison there. On the £250 million, we made the assessment that, even had we been able to provide the guarantee of funds that was requested, the company did not have a viable future. It was severely in debt and losing a significant amount of money. We would have been in the same situation in the future but £250 million poorer. Also, it is not the Government’s usual position to prop up private companies that have got themselves into trouble.

When it comes to the total costs of the failure—there are many, and we understand that—some are clearer than others at this time. On repatriation, for example, I did not just double the Monarch cost—I said that this repatriation is twice the size of Monarch’s, but it is also more complicated. However, we are mitigating that by having conversations with a third party. We learned from the Monarch case that some people do not behave in the way you would expect: in that case, a significant portion of people chose not to be repatriated using the Government. They found other ways of getting home—we do not know how, but they did not arrive for their flights.

Estimating the costs is extremely difficult. It is up to us to keep the costs as low as possible, but ATOL customers who have future bookings can claim from ATOL—that fund is underwritten by the Government. Again, we cannot be absolutely clear about the cost because it will depend on how many people end up claiming, but every person who applies to ATOL to get a refund for their booking will receive it—and that is right.

[Lord Balfe (Con)]

My Lords, I draw noble Lords’ attention to my entry in the register. The Times today has two very interesting headlines. The first one says that,

“the company had hung its staff ‘out to dry’”,

but the second one, on the same page, says:

“High flying Thomas Cook chiefs will enjoy a soft landing”.


Yet again, boards of directors appear to be completely above the lifestyle of the workers who are making the money that they benefit from. Of more worry to the day-to-day employees is a quote from the Insolvency Service. It said that those,

“who lost their jobs would not be paid by the failed company for their last three weeks of work”.

These are people who have mortgages to pay, food to put on the table for their children and are due their wages next Monday. Can I ask that the Government look seriously at a way of providing some short-term financial support so that this wages bill can be paid? It is absolutely outrageous that millions and millions of pounds are pocketed by directors at a time when people are not being given even the money to pay their mortgage and buy their children’s food.

[Baroness Vere of Norbiton]

I thank my noble friend, who makes an extremely important point. I may be mistaken, but I did understand that BALPA wanted the Government to give Thomas Cook the £250 million, which, in my mind, would just be propping up a failing board, which, clearly, he does not have an awful lot of respect for.

It is top of mind to make sure that the employees are treated as well as possible. The Insolvency Service is preparing to pay statutory redundancy to employees. I will look further into exactly what payments will be made and when, and I will include payments that are due to pensions. I will provide as much information as I possibly can and I will put a copy of my letter in the Library to clarify what the Government and the Insolvency Service can do to support employees in the short term. In the longer term, as I have already said, the Jobcentre Plus rapid response service is there, waiting and able to help employees. I have been really heartened by so many companies, such as British Airways and Heathrow Airport, sharing their jobs’ pages on Twitter and saying, “Look, Thomas Cook staff, we respect you. You are good workers. We’ve got jobs, please apply to us”.