Arch Cru Compensation Scheme
Debate between Peter Bottomley and Tristram Hunt(13 years, 2 months ago)
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Tristram Hunt
I was going to say that I thank the hon. Gentleman for his intervention, but he seemed to be making an unnecessarily partisan point when we are trying to work together for the good of our constituents. I will simply let it pass in that manner.
That figure of £112 million does not include contracts from the Department of Energy and Climate Change, contracts from the Ministry of Defence, which would only provide ranged values of contracts up to a total of £20.6 million and contracts awarded by the Department of Business, Innovation and Skills, which simply did not answer my question. I hope that the Minister will seek out the truth himself.
Sir Peter Bottomley
Does the hon. Gentleman agree that one important aspect is what attitude the Government take? The second important point is that Capita and its shareholders ought to make a clear assessment of the reputational risk of Capita handling something where things clearly went wrong and of its failure to spot what was going wrong.
Tristram Hunt
The hon. Gentleman is absolutely right that what we are seeing this morning is the decimation of the reputation of Capita. That decimation will only grow unless Capita steps up to the plate, works with the Government and accepts that it is in its own long-term interest, as well as its moral obligation, to ensure that those who invested in this fund on the basis of Capita’s reputation see their payments returned.
I will not go through all the intricacies of my investigation into the awarding of contracts to Capita. Suffice to say that the Government have a whip hand on this issue and should be thinking about using it.
The point is that with financial products and investment opportunities becoming ever more complex, it is vital that investors have confidence in the regulatory framework that upholds their investment. It has been said that
“A badly designed product or a product that is widely mis-sold can have a negative effect on consumer outcomes and actually, over the long term, a negative effect on the industry. It doesn’t just affect the particular product or firm involved. It also erodes people’s confidence in financial services.”
As the Minister will know, those are not my words but his words.