Oral Answers to Questions

Debate between Kevin Hollinrake and David Davis

Thursday 25th January 2024 Commons Chamber

[Sir David Davis (Haltemprice and Howden) (Con)]

For the legislation to work, postmasters have to come forward. When I asked one of my constituents this weekend why they had not come to me sooner, they said it was because they had signed a non-disclosure agreement, but also because they had had to sign the Official Secrets Act. I thought that was so bonkers that I did not believe it, until I read page 26 of Nick Wallis’s book, which says that postmasters do have to sign the Official Secrets Act. If that mad policy is still going on, will the Minister bring it to an end? Will he tell postmasters all over the country that they are completely at liberty to talk to their MPs about any aspect of the Post Office?

[Kevin Hollinrake]

I thank my right hon. Friend for all the work he has done in this area. I understand that the requirement to sign the Official Secrets Act relates to the confidentiality of mail; it does not relate to the confidentiality of issues regarding mistreatment by Post Office Ltd. My right hon. Friend is absolutely right to raise that point, and I will certainly raise it with Post Office Ltd, but I can confirm that that would not prevent somebody from speaking out, including to their Member of Parliament.

Post Office Horizon Scandal

Debate between Kevin Hollinrake and David Davis

Wednesday 10th January 2024 Commons Chamber

[Sir David Davis (Haltemprice and Howden) (Con)]

(Urgent Question): To ask the Secretary of State for Business and Trade if she will make a statement on compensation and outstanding matters relating to the Post Office Horizon scandal.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

As the Prime Minister indicated a few minutes ago, I will inform the House about the further steps the Government are taking to address the Horizon scandal.

The Government are taking measures to speed up the flow of compensation. We have already set a target of issuing initial offers for 90% of group litigation order cases within 40 days of receiving a completed application. I announced in November that we would be introducing a £600,000 up-front offer for claims with overturned convictions, which people could choose to take rather than going through the detailed assessment process. This has already made a real difference. Before my announcement, only five of the relevant people had reached full and final settlements; I can now report that, with the help of the minimum payments, we have finalised 30 cases. This has obviously speeded matters along for those who have taken this up-front offer. It has also helped those who have chosen individual assessment, because resources can be concentrated on those cases.

I can announce today that we are taking similar measures in respect of the group litigation order scheme. We will now make people in that scheme an up-front offer of £75,000, which will save them having to go through a full assessment. However, as with overturned convictions, if they believe they are entitled to more, they are welcome to continue with the full assessment. Not only will this allow the Department to focus its resources on the larger cases, but it will allow claimants’ lawyers to do the same. The pace at which we can get claims into the scheme is the key constraint on how quickly we can settle them. The up-front offer is smaller for the GLO scheme than for the overturned convictions because the claims tend to be smaller. We estimate that perhaps a third of GLO claimants may want to consider this route. I am sure the House will welcome this measure.

When I made my statement on Monday, I heard Members from all parts of the House share my desire to ensure justice for postmasters who have been convicted of offences as part of the scandal. The whole House is united on this, and in the light of last week’s excellent ITV series, I believe the whole nation is united on it, too. We have all been moved by the stories of postmasters who have been unjustly convicted and the terrible effects over the period of two decades on their finances, health and relationships. Indeed, we have seen whole lives ruined by this brutal and arbitrary exercise of power.

Hundreds of convictions remain extant. Some of those convictions will have relied on evidence from the discredited Horizon system; others will have been the result of appalling failures of the Post Office’s investigation and prosecution functions. The evidence already emerging from Sir Wyn Williams’s inquiry has shown not only incompetence, but malevolence in many of their actions. This evidence was not available to the courts when they made their decisions on individual cases. So far, 95 out of more than 900 convictions have been overturned. We know that postmasters have been reluctant to apply to have their convictions overturned—many of them have decided that they have been through enough and cannot face further engagement with authority. Many fear having their hopes raised, only for them to be dashed yet again.

The Horizon compensation advisory board has recommended that we should overturn all the convictions of the postmasters who were prosecuted in the Horizon scandal. I think its motivation for doing so is absolutely right, and we will work with it to speed up the process. May I put on the record my thanks to Lord Arbuthnot, who is in the Gallery today, and the right hon. Member for North Durham (Mr Jones) for their work on the campaign generally and on that advisory board?

Following the recommendation would involve unprecedented action by Parliament to overturn specific verdicts of the courts. The Government completely recognise the importance of an independent court system and judiciary, so the recommendation raises important issues of constitutional principle. This is therefore not a decision we can take lightly. It also creates the risks of a different sort of injustice.

I am sure that a great many people were wrongly convicted in the scandal, but I cannot tell the House that all of those prosecuted were innocent or even that it was 90%, or 80%, or 70%. Without retrying every case, we cannot know. The risk is that instead of unjust convictions, we end up with unjust acquittals, and we just would not know how many. The only way we could tell would be to put all cases through the courts, further dragging out the distress for many innocent people.

--- Later in debate ---

[Mr Speaker]

I will extend the time. It was so important to get all of that on the record. I believe that the Minister wanted to make a statement but was overruled. At least we have certainly had that statement now.

[Sir David Davis]

As the Minister said, earlier this week many of us across the Chamber called for this appalling injustice to be solved in months, not years. It looks as though the Government have responded correctly to that call, ensuring swift justice. But there are undoubtedly difficult constitutional and legal issues involved, as he laid out in detail.

Some of the victims that I have spoken to say they need an individual exoneration rather than a grand pardon because they are understandably concerned about being bracketed with the very small number of people who will actually not be innocent. Will the Minister undertake to continue looking into this matter and address the quite proper concerns of the legitimate victims?

I would also welcome further elaboration on compensation. Fujitsu, which has played a central role in the scandal, is still at the heart of Government IT systems. Will Fujitsu will be required to meet some of the costs of the undoubtedly enormously expensive compensation that we are paying out? Finally, will the Government accelerate the investigations to convict those who are really guilty of causing the scandal by perverting the course of justice?

[Kevin Hollinrake]

I thank my right hon. Friend for the urgent question and for his collaboration with us on these matters. We have looked carefully at the issue of individual exonerations and did not see any way possible to do that without an exhaustive and time-consuming administrative process, which would add further burdens to those that people have already suffered.

The other issue is getting people to come forward again, which has been one of the major problems in getting people to appeal their convictions. We see the solution that we have adopted as very much the lesser of two evils. Nevertheless, we are keen to discuss mitigations and safeguards with other Members of the House. I set out one earlier on—the requirement to sign a statement of innocence—and I am keen to work with him to look at other mechanisms that we can use to ensure that those people who get their convictions overturned and access compensation are actually innocent of the charges.

My right hon. Friend made the important point about Fujitsu, which has been raised many times. As he knows, part of what the Government did was to put in place a statutory inquiry, chaired by Sir Wyn Williams. It is due to complete by the end of the year, and, hopefully, it will report soon after. At that point in time, we will be able to assess more clearly who is actually responsible. Many people may have already formed a view on that, but we think it right that we follow a process to identify individuals or organisations who are responsible for the scandal. Of course, we would expect those organisations to financially contribute. There are financial and legal measures that we can take.

As regards individuals, it may be that there is sufficient evidence for the authorities to take forward individual prosecutions, and I think many in the House would welcome that.

Horizon: Compensation and Convictions

Debate between Kevin Hollinrake and David Davis

Monday 8th January 2024 Commons Chamber

[Kevin Hollinrake]

I thank the hon. Lady for her questions and, indeed, for her work on the all-party group on post offices. In terms of the case she raises of the postmasters who have suffered financially and in which there will be difficulty in providing information because of lack of evidence, the benefit of the doubt should clearly be with the postmasters in this situation. The Horizon shortfall scheme is there to compensate people in that situation. If she needs any help with any of those cases I am very happy to assist.

On whether people repay bonuses or whatever else people might be held accountable for, in order to be fair we should wait for the results of the inquiry. We believe in process in this House and it is right that people have a right to reply and give their own evidence. I agree with the hon. Lady’s confidence in Sir Wyn Williams, who is doing a tremendous job.

I am sorry that I cannot be more precise on the timescales, but I will be very disappointed if we go past the end of this week without giving more information to the House. I entirely agree with the hon. Lady about the accountability of individuals both for all reasons of justice and to act as a deterrent to anybody else who is ever tempted to do the wrong thing in such circumstances. These corporate failures and corporate abuses cannot continue and we need to make sure people realise that if it happens, they will be held to account.

[Mr David Davis (Haltemprice and Howden) (Con)]

I congratulate the Minister and his immediate predecessor for the sterling work they have done in attempting to bring justice to this problem. However, the Government need to do four things: to stop the Post Office unnecessarily challenging the victims’ appeals and find a more rapid method to exonerate all the innocent victims; to instruct the Post Office to stop hiring expensive lawyers to challenge the compensation claims and therefore to accelerate the payment mechanism; to strip away the Post Office’s right to police its own cases; and to accelerate the investigatory procedures prior to criminal prosecutions of the real villains in this case—we know who they are. Does the Minister believe that he can achieve those four aims in months rather than years?

[Kevin Hollinrake]

I thank my right hon. Friend for his kind words and for all his work in the campaign for justice for postmasters. I also congratulate him on his recent knighthood; the whole of Yorkshire was rejoicing at his award.

I can assure my right hon. Friend on all four counts. Yes, we want a more rapid means of overturning convictions. Yes, we want to make sure that the Post Office does not challenge unfairly any attempt to overturn those convictions. Yes, too, on making sure that the investigatory process happens more quickly. Of course, some of these matters are outside our control, as he is fully aware, because of the separation of powers, but in terms of the policing of cases I am happy to talk to him after this statement about what precisely he means by that. There is an independent element to the way all the compensation schemes are running. They are not being policed or restricted by the Post Office; there are independent panels and independent assessments as part of all those processes, but I am happy to talk to my right hon. Friend in detail about what we can do in those areas.

Post Office (Horizon System) Compensation Bill

Debate between Kevin Hollinrake and David Davis

2nd reading
Tuesday 19th December 2023 Commons Chamber

[Kevin Hollinrake]

I thank my hon. Friend for his intervention, and I particularly thank Mr and Mrs Simpson for their work—of course, a number of people campaigned so strongly on this tragedy. I pay tribute to his constituents and to many others like them who made sure we are here today, delivering justice and, indeed, compensation for those postmasters.

Alan Bates’s case is one individual tragedy, but he is only one among many: over 3,000 people have suffered in some way as a result of this scandal. For some, that meant paying the Post Office money they did not owe. For others, it meant the loss of their livelihood, their home, their mental or physical health, or their family relationships. Too many have died before getting justice; saddest of all, some of those deaths were suicides. Each Horizon victim is a personal tragedy, and it is imperative that each and every one gets the justice and compensation for which they have waited too long.

This Government are committed to delivering justice for all Horizon victims. Part of that justice will come from making sure that everyone knows the truth about what happened, which is why the Government set up the statutory inquiry into the scandal chaired by Sir Wyn Williams. The work of that inquiry to date is commendable—it is doing important work in exposing the truth. From that truth will follow corporate and individual accountability, for which there is a strong appetite in this House and beyond. I sympathise with hon. Members’ desire to see accountability right now, but we must let justice take its course.

[Mr David Davis (Haltemprice and Howden) (Con)]

On the Minister’s point about corporate responsibility, I had the chief executive of the Post Office come and apologise to one of the people I have represented in this exercise. The point I made to him, which I hope the Minister will also take on board, is that the corporate behaviour of the Post Office has not been above criticism: it has employed very expensive lawyers to make this process much more difficult for the victims than it needs to be. I hope the Government will continue to encourage the Post Office not to do that.

[Kevin Hollinrake]

Absolutely—we want to make it as easy as possible. I thank my right hon. Friend for his campaigning on this matter, too: he is one of a number of parliamentarians who has done fantastic work to make sure we are here today. I have referred to both corporate and individual responsibility. Corporate accountability is not enough: where we find that individuals are to blame, they should be held to account too.

Any compensation must be fair and just, and we have created a Horizon compensation advisory board to help us make sure that happens. I am very grateful to the right hon. Member for North Durham (Mr Jones), both for his campaigning on this matter and his work on the advisory board. He sits on the board alongside Lord Arbuthnot, who is another great campaigner on this matter, and two academics. Its reports, which are published on gov.uk, have been invaluable in helping us ensure that the schemes are working properly and delivering fairness. As part of the Post Office’s process for compensation for overturned convictions, it is —by agreement with claimants’ lawyers—appointing an independent assessor for the process, whose role will be to ensure that fair compensation is paid.

Post Office: Horizon Compensation

Debate between Kevin Hollinrake and David Davis

Thursday 23rd March 2023 Commons Chamber

[Kevin Hollinrake]

I thank the hon. Gentleman for his words, and for welcoming the statement and the opening of the scheme. I absolutely concur that we should all be grateful for the work of my predecessors—not least, as he said, my hon. Friend the Member for Sutton and Cheam (Paul Scully).

The hon. Gentleman is right to say that we want to do this as quickly as possible. I am very pleased with the work of the advisory board, which is helping with the scheme. The scheme is based on a set of principles that should mean that compensation is delivered more rapidly and that there is a clear route to claims being settled quickly. We very much hope that that is the case—we want to get those payments out of the door at the earliest possible opportunity.

Again, we are working at pace on the tax issue. Clearly that is a matter of law as well as of tax policy, so getting that right is key. We have to work with the Treasury and HMRC to ensure that we get it right, but that is a determination and a commitment that I am very happy to make. We hope to make a further announcement on that work shortly.

[Mr David Davis (Haltemprice and Howden) (Con)]

At last. I remind the House that 27 people have died in the wait for justice. That said, I commend the Minister and his processor for their fabulous compassion, energy and drive in delivering what we are seeing today. However, there are people I represent among the 555 who have still not received any compensation for a variety of reasons, so can the Minister tell the House whether the scheme, under its brilliant advisory board—some of whom are in the Chamber—will cover all 555 claimants?

[Kevin Hollinrake]

I thank my right hon. Friend for his words. He is absolutely right that it has taken too long and people have died waiting for compensation. That is totally unacceptable, and the worst part of that delay was the obfuscation and denials of the Post Office when clear evidence that something was sadly amiss was brought to light by parliamentarians. Yes, it is absolutely the case that we want every single person of the 555 who merit compensation to get it so that it is fair across the board—so that, between them, the three schemes deliver fair outcomes and there is parity across them. I am determined to make sure that that happens, as is the advisory board. We will report back to Parliament regularly to ensure that Members are aware that that is the case.

Economic Crime (Transparency and Enforcement) Bill

Debate between Kevin Hollinrake and David Davis

Committee stage
Monday 7th March 2022 Commons Chamber

[Mr Davis]

It would be good. It would allow us to crack down more effectively; not so much more quickly but more effectively.

What will we see during the months it takes to get people to the legal point at which they are sanctioned? We will see Russians scrambling to sell off their houses, dispose of their businesses and offload their football clubs. In respect of many of the measures, we will know a lot more about it and be much better informed, if none the wiser, with respect to what they are doing. Multimillion-pound car collections will be loaded into jets; anchors will be weighed on superyachts; priceless artworks will be squirrelled away—all to wend their way back to Russia or some other safe haven for these people. By the time our sanctions have taken effect on not all but many of the oligarchs, the horse will have well and truly bolted. Indeed, the background noise is currently the sound of a stampede of horses bolting as the door on the stables creaks shut. That is what we have to put right.

My new clause will help to prevent all that. It will not do everything, because it is only one piece of the repertoire of things we need to do, but it will allow the Government to publish a hitlist—forgive the tabloid term—or a list of individuals who are being considered for sanctions. In the same way as someone may wait on bail before they face trial, the freedoms of those on the list will be restricted for the period so that they do not flee. Once a person’s name appears on the list, their ability to sell, liquidate or transfer out of our jurisdiction their assets—cars, homes, businesses, jets, investments, cash and so on—will be frozen. They will then be unable to sell those assets or move them out of the UK. They will still be able to use them—there will be beneficial advantage to them—but their ability to thwart what we are trying to do today will be restricted.

Given my history in this House, some may be rather surprised that I am willing to see a restriction of a specific human property right—that is what my new clause amounts to and that is quite unusual for me—but we need to take action now; otherwise, any sanctions that the Government seek to impose will be entirely meaningless for a large number of these people. We see Chelsea being sold today and all sorts of actions going on that cannot be helpful to what we are trying to achieve. My new clause would give the Government breathing space—time to go through the legalities of formally sanctioning the oligarchs and pals of Putin who rightly deserve to be the target of sanctions.

Although the Government have identified 100 oligarchs to sanction, other countries have identified more. This is going to be a long war. The sanctions are going to be in place for years, not months. They will have effect only if we move more quickly than the targets.

[Kevin Hollinrake]

Will my right hon. Friend give way?

[Mr Davis]

Not for the moment; I am just about to finish the point. To move rapidly is the only way to ensure that our sanctions actually hit Putin where it hurts. I will now give way—I have never not given way in my life.

[Kevin Hollinrake]

I am most grateful. My right hon. Friend’s new clause is very important but, as he would probably concede, a difficulty with it is that we need alongside it transparency in respect of beneficial ownership; otherwise, we will not know who owns the assets. The problem is that the ownership of a lot of the assets is hidden. Does he agree that for his new clause to be truly effective we need a day-one capability to see who owns the assets?

[Mr Davis]

Yes, I do, but my hon. Friend must bear in mind that the burden in the new clause—the responsibility and requirements—falls on the person who is sanctioned.

Loan Charge 2019: Sir Amyas Morse Review

Debate between Kevin Hollinrake and David Davis

Thursday 19th March 2020 Commons Chamber

[Mr Davis]

I thank the right hon. Gentleman—I nearly called him my right hon. Friend, from my days on the Public Accounts Committee.

When financial advisers and accountants could not understand the law, when employers could not understand the law, and when the courts could not agree on the law until 2017, how could an ordinary layperson possibly have understood the law?

The Supreme Court’s eventual decision, overturning three decisions before it, reflects changing national attitudes on the responsibility of the taxpayer—the point the right hon. Gentleman has just lighted on. As a result, one organisation representing the professions involved explicitly changed its guidance to its members. It said:

“Members must not create, encourage or promote tax planning arrangements or structures that…set out to achieve results that are contrary to the clear intention of Parliament in enacting relevant legislation and/or…are highly artificial or highly contrived and seek to exploit shortcomings within the relevant legislation.”

In what year was that changed guidance handed out by the professions? 2017.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

My right hon. Friend is making some very good points, which I agree with. However, does he not agree that if something looks too good to be true, it usually is? In my business, we have been brought this kind of scheme a number of times by our advisers over the last 30 years, maybe with a barrister’s letter saying, “Don’t worry. It’ll be fine. You can reduce your tax bill hugely by adopting this scheme.” We have always rejected them because we knew the risk. Does my right hon. Friend agree that there is a requirement on the individual who subscribes to one of these schemes to make sure they understand the risks and that there is no guarantee the scheme will actually reduce their tax burden?

[Mr Davis]

My hon. Friend is, of course, a skilled businessman; he knows what he is doing, and he is across this sort of thing—it is his job to be across it—but I am not so sure we could say that about a locum nurse or a social worker. This issue was actually at the centre of Sir Amyas Morse’s arguments. He took the view that the attitude from 2017 should apply back to 2010, even though the law was not clear. He took the view that the principle of a taxpayer’s responsibility for their own tax affairs must be upheld. That is the point my hon. Friend is making, and it is right—but only when the law is clear. That means that the Government have a responsibility to make the law clear and not to punish ordinary, hard-working taxpayers when Ministers fail to live up to that responsibility.

HMRC itself seems to disagree on the importance of the taxpayer’s responsibility. Why do I say that? Because until 2014, it did not approach the individual taxpayers; it approached the advisers. It approached the companies that insisted—they did not ask, but they insisted—that these locums and social workers took up this option. HMRC went to the advisers until 2014—until the issue suddenly started to become quite controversial.

Last year, the Prime Minister himself commented on this issue. He said:

“The real culprits in this matter, if I may say so, are not so much the individuals themselves who have decided to use the loan charge as a way of minimising their tax exposure. It’s the people who advised them that it was a sensible thing to do. In my view, we should find a way of going after them.”

That is the Prime Minister’s view, and I happen to agree, unusually.