Post Office: Executive Remuneration Debate
Full Debate: Read Full DebateDepartment: Department for Business and Trade
Lord McNicol of West Kilbride
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Post Office: Executive Remuneration
Lord McNicol of West Kilbride Excerpts(8 months, 2 weeks ago)
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Lord Johnson of Lainston (Con)
My noble friend raises a very good point. I am aware of people’s frustration over the longevity of the processes, but Sir Wyn Williams’s review will be extremely important in informing us about what has happened. I agree with my noble friend’s point: long-term incentive plans should be as common in public sector bodies as they are in the private sector. I encourage that when looking at how we review governance in these sorts of organisations.
Lord McNicol of West Kilbride (Lab)
My Lords, a recent Post Office board meeting refers to a “toxic culture of disbelief” persisting at the top, including a continuing view that some postmasters and postmistresses were guilty as charged. Until the Post Office is taken out of the compensation process altogether, nothing will change. The Minister knows that one of the advisory board’s recommendations is to do exactly that. Have the Government made any recent assessment of the impact of the Post Office’s involvement on the delivery of the compensation scheme? Also, regarding the last question put by the noble Lord, Lord Forsyth, the answer is yes—the Government do have a clawback mechanism.
Lord Johnson of Lainston (Con)
I am grateful to the noble Lord for that point. On the reference point at the end, I assume that we are awaiting the outcome of the inquiry, which is only right, so that we can ensure that the right things are done at the right time in the right way. I am also grateful for the prompt regarding the Government taking over the entire management of the compensation system. There is a great deal of demand for that—half the compensation processes are managed by the Government, and they have been effectively delivered. It is not for me to make such commitments, but it is clear that these discussions are going on within government to give people confidence that we are trying to do the right thing for those who have suffered so much.