Post Office: Executive Remuneration

Debate between Lord Reid of Cardowan and Lord Johnson of Lainston

Tuesday 27th February 2024 Lords Chamber

[Lord Johnson of Lainston (Con)]

I pay tribute to my noble friend for the astonishing work he has done on this great travesty. I am very grateful to him personally for driving this agenda, and I agree in principle with some of the comments he has just made. There seem to be an air gap between arm’s-length bodies, the Government and Ministers. It is very important that this situation allows us to review exactly how the principle of arm’s-length bodies functions, in the sense that it does not mean they are entirely out of Ministers’ or the Government’s remit and our lines of inquiry. Noble Lords would expect that of us. They remain within reach, and the inquiry will allow us to have a significant investigation into how culture and practices can be improved in the governance of such institutions.

[Lord Reid of Cardowan (Lab)]

My Lords, as the Minister said—well, as he implied—it is an absolute disgrace that people should be paid a bonus to turn up at a public inquiry. I am afraid it is not good enough for him to say that the Government did not approve it, because if they acquiesce in it, in practical terms they are giving their approval. So, will he take measures to disapprove of that payment? If he is not prepared to do that, I can tell him that, since retiring as a Minister, I have been at 16 public and other inquiries—so can he tell me who I write to for payment?

[Lord Johnson of Lainston (Con)]

I am grateful to the noble Lord for submitting his claim for attendance at public inquiries. He is absolutely right. I have to be careful with my language for many good reasons, but the idea that we should reward staff for attending an inquiry of such seriousness did seem clearly out of kilter with how the governance should have functioned at the time. Two reports have been written, the Burton report and the Simmons & Simmons report, both of which are very clear on the governance of paying Post Office staff; that the remuneration committee should have clearer direction and more resourcing; and on how the department’s policy team should interact with the Post Office. The fact that there were not necessarily enough personnel in the department overseeing some of these arrangements is now going to be reviewed very clearly.

When the Horizon inquiry moved on to a statutory footing, the idea that you should reward people for attending what was effectively a quasi-judicial environment was of course a bit bizarre. It certainly would not happen in any other environment going forward. There are huge lessons to be learned, not just for one party or one Government but for the body politic and the institution of our bureaucracy, so that we do not have bureaucratic indifference. Ministers have the opportunity to take responsibility for doing the right things and to take an active part in organisations that perhaps we felt should be completely ring-fenced and separate. I do not believe that that is the right thing to do.