Post Office (Horizon System) Offences Bill (Instructions)

Marion Fellows Excerpts
Monday 29th April 2024

(1 day, 19 hours ago)

Commons Chamber
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Marion Fellows Portrait Marion Fellows (Motherwell and Wishaw) (SNP)
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I beg to move,

That it be an Instruction to the Committee on the Bill that it have leave to make provision relating to Scotland.

At the outset, let me say that if I cry this afternoon, it is not because I am upset; it is because I am angry and feel got at by other parties in this place, which are determined not to bring Scotland into the Bill.

This morning, Robert Thomson, Chris Dawson and Keith Macaldowie—three sub-postmasters—travelled from Scotland to be here to listen to the reasons that Scotland should not be included in the Bill. Unfortunately, there were two urgent questions, a statement and a train break-down, so they have had to go back and could not be here to watch the people in this House hold the fate of their exoneration in their hands.

There are huge legal misgivings about and potential constitutional implications to the Bill, as legal authorities across the United Kingdom have said. However, to use the words of the Minister of State, Department for Business and Trade, the hon. Member for Thirsk and Malton (Kevin Hollinrake):

“We recognise that this is an exceptional step, but these are exceptional circumstances.”—[Official Report, 10 January 2024; Vol. 743, c. 302.]

Postmasters across the United Kingdom want this exoneration Bill to succeed, as do those of us on the SNP Benches. It must succeed; we need to get the exoneration through this place in order that convicted sub-postmasters across the United Kingdom can claim compensation and redress for what they have suffered.

I have before me the witness statement from Robert Thomson, who, during his court case, had to sit down with his two young sons to tell them of the real possibility that he would have to go to prison. How awful is that? How awful it is for all the other sub-postmasters who have had to go through the very same experience?

Gavin Newlands Portrait Gavin Newlands (Paisley and Renfrewshire North) (SNP)
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My hon. Friend talks about going to prison. My constituent lost her liberty, her good name, her house, her marriage, her family—her whole existence—because of this situation. She has had to move to my constituency —a life on her own. The Government are denying my constituent the justice she deserves. Does my hon. Friend agree that that is utterly shameful?

Marion Fellows Portrait Marion Fellows
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“Utterly shameful” does not even begin to describe it.

Right up until quite recently, the Government said that they would include Scotland in the Bill, but they have decided not to do so for spurious reasons. Today, I have been talking to sub-postmasters, and I have invited Scottish MPs to come and speak. The main reason some Scottish MPs, whether they are Liberal Democrats or Conservative Ministers, did not want to include Scotland was that the First Minister said that he did not want to see criminals exonerated when they were guilty. No one wants that—[Interruption.] I have heard the Minister himself say that previously in this House.

Patricia Gibson Portrait Patricia Gibson (North Ayrshire and Arran) (SNP)
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I admire the passion with which my hon. Friend is speaking on behalf of sub-postmasters. Does she agree that part of the sense of insult upon injury is that there is no proper explanation as to why Scotland cannot be included, so it looks like petty partisanship? And I have to say, Madam Deputy Speaker, that that is borne out by the chuntering, sniggering and laughter going on behind me as my hon. Friend speaks.

Marion Fellows Portrait Marion Fellows
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My hon. Friend is right: I am passionate about this. As chair of the all-party parliamentary group on post offices, I have deliberately worked on this issue, across parties, for years—I have worked with everyone. Indeed, when I wrote to the Prime Minister at one point, I had signatures from every party, including from a Member of Sinn Féin, a party that does not attend the House.

I have also heard it said today that the Lord Advocate does not want this. Well, at no point has the Lord Advocate taken a view on proposed legislation either in Westminster or in Holyrood. The Lord Advocate is not responsible for bringing cases of miscarriages of justice before the court of appeal in Scotland.

Alistair Carmichael Portrait Mr Alistair Carmichael (Orkney and Shetland) (LD)
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I have worked with the hon. Lady in her role as chair of the APPG, and I commend her for her work over many years. The point about the Lord Advocate is surely that the route to justice must go through the Scottish Parliament, because the route to prosecution went through the Scottish Parliament. That is where the route of accountability lies. [Interruption.] There was some talk about chuntering earlier, but it seems to go in more than one way. I refer the hon. Lady to the comments of the Lord Advocate in the Scottish Parliament on 16 January. If the Lord Advocate really wants the Bill to proceed, she could say so in terms herself. [Interruption.] Chunter on, boys.

Marion Fellows Portrait Marion Fellows
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I do not think that was an edifying intervention.

Joanna Cherry Portrait Joanna Cherry (Edinburgh South West) (SNP)
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Will my hon. Friend take an edifying intervention?

Joanna Cherry Portrait Joanna Cherry
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Is my hon. Friend as surprised as me that the right hon. Member for Orkney and Shetland (Mr Carmichael), a former prosecutor, does not understand that prosecutions do not go through the Scottish Parliament? The prosecution service in Scotland is completely independent of Parliament. That is a fundamental aspect of our constitution. Is she as shocked as me that the right hon. Gentleman does not understand that, and does she agree that the fact that he misses such a fundamental point rather undermines the force of his argument?

Marion Fellows Portrait Marion Fellows
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I thank my hon. and learned Friend for making that point. The body responsible for bringing miscarriages of justice before the court of appeal in Scotland is the Scottish Criminal Cases Review Commission, which is not under the spell of the Lord Advocate. That argument is spurious to say the least.

Chris Stephens Portrait Chris Stephens (Glasgow South West) (SNP)
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My hon. Friend is making an excellent speech. Is she aware of the evidence given by Professor James Chalmers of the University of Glasgow to the Justice Committee a couple of weeks ago? He was asked this very question, and he said that in his view, it was better that the legislation goes through this place with legislative consent motions in the Scottish Parliament, because it is tied directly to the UK compensation scheme for this area.

Marion Fellows Portrait Marion Fellows
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I thank my hon. Friend for that intervention. Yes, I am very aware that the regius professor of law at the University of Glasgow made that very point to the Justice Committee. There has been widespread disquiet; I think the Chair of that Committee, the hon. and learned Member for Bromley and Chislehurst (Sir Robert Neill), would agree that no one in the legal profession really wants this Bill. It is breaking all precedent, but for a really good reason.

Postmasters have suffered. Robert Thomson, the postmaster who was going to be sitting in the Gallery, was convicted in 2006 while his mother was still alive. He is the man who had to talk to his sons and tell them, “I might not be here tomorrow.” He did not go to prison, but he could not get a job that gave him the income that he had when he was a postmaster. He has been in penury, his life has been turned upside down, and his children have suffered enormously. That is the case for so many sub-postmasters across the United Kingdom: they did nothing wrong, yet people were pointing at them in the street and whispering. Another sub-postmaster who was going to be in the Gallery watching us all today had to move back to his hometown because, five years later, he heard people in the supermarket saying, “There’s the guy who stole from the Post Office.” This kind of thing never leaves those victims—they will carry it to their dying day. Robert Thomson’s mother died before her son spent two years going through the Scottish courts to be exonerated.

Every time I have been in this place when any legal issue comes up, I am told that this Parliament is sovereign. Well, prove it: put the provisions of this Bill into Scotland-wide use as well. [Interruption.] Members can stand at the back, smile and snigger, but I mean it—it is absolutely disgraceful that you are saying to Scottish sub-postmasters who were convicted that they cannot get justice at the same time as their English, Welsh and Northern Irish counterparts. This is a Westminster problem. Westminster must and should sort it out, and it is easily done. Ask for a legislative consent motion, and you will get it. The Scottish Parliament will put a Bill through to exonerate these postmasters, but it cannot do it—it cannot mirror exactly what is done in this place—until this Bill has gone through all of its stages.

Joanna Cherry Portrait Joanna Cherry
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Having regard to the evidence of Professor Chalmers, who of course is regius professor of criminal law at Glasgow University—that addressing this problem would be best done in this place—does my hon. Friend agree that we often hear sanctimonious lectures from the UK Government about how Scotland’s two Governments should work together to benefit Scotland? This legislation deals with a problem made on the UK Government’s watch; is it not the perfect example of an issue on which Scotland’s two Governments should act together, with the UK Government taking the lead in the same way that they have done for Northern Ireland and the Scottish Government consenting, so that we can get justice done swiftly for Scottish postmasters and postmistresses in the same way as it has been done for other people in this glorious Union that Tory Members are always telling us about?

Marion Fellows Portrait Marion Fellows
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Yes. I was appalled, upset and disturbed by the fact that the Scottish Government had been trying to contact Westminster Ministers to get this Bill to cover Scotland as well, and there was no comeback and no correspondence—nobody bothered. One afternoon, within a two-hour period, the Minister—who I greatly admire, as he knows; I have a very good working relationship with him—was able to phone the Northern Irish First Minister, Deputy First Minister and Justice Minister.

Kevin Hollinrake Portrait The Minister of State, Department for Business and Trade (Kevin Hollinrake)
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I thank the hon. Lady for giving way. I have met the Scottish justice Minister twice online; the reason I met the Northern Ireland Ministers physically is that they came here to Parliament to meet us.

May I push back on something that the hon. Lady said a few moments ago? She said that this Parliament is sovereign. Absolutely, it is sovereign, but on these matters, her Parliament is also sovereign. [Interruption.] Clearly, as she said earlier in her remarks, there is legal controversy on these matters—she has admitted that herself. This Parliament is taking the legal risk in that area, but is the hon. Lady aware of her Lord Advocate’s position on this particular matter? These are her actual words:

“It is important to recognise that, in Scotland, there is an established route of appeal in circumstances such as this…and that due process must be followed.”—[Scottish Parliament Official Report, 16 January 2024; c. 14.]

Does the hon. Lady not believe that in that situation, her Parliament should act to overturn these convictions?

Rosie Winterton Portrait Madam Deputy Speaker (Dame Rosie Winterton)
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I am quite anxious that we do not have too many long interventions so that, if hon. Members want to catch my eye, there is plenty of time for debate.

Marion Fellows Portrait Marion Fellows
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Madam Deputy Speaker, I hate to disagree with you—as you know, I do not do that—but there will be no more time for some Members to speak on this Bill if it does not include Scotland. In his intervention, the Minister said that the Scottish Parliament is sovereign—well, there is a surprise. We on the SNP Benches all want Scotland to be sovereign, but it is the people who have sovereignty in Scotland, not the Parliament.

We are dancing on the heads of pins, Madam Deputy Speaker, which is not my intention. It is very clear—so clear that it is transparent— that party politics is involved in all of this. Six days ago, the Secretary of State for Business and Trade described the Scottish Parliament as lazy, and asked why it did not put through its own legislation. Believe me, it can and it will if it has to, but why should Scottish postmasters wait longer for justice? On Second Reading in this place, I said that there was likely to be to-ing and fro-ing, and that it would probably be July before this Bill is passed.

Peter Grant Portrait Peter Grant (Glenrothes) (SNP)
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On behalf of my constituents who have been affected by this scandal, I thank my hon. Friend for the astonishing amount of work she has done in this area. Is it not the case that, while it would certainly create issues for the legal officers in Scotland if Scotland were included in this Westminster Bill, a Bill in the Scottish Parliament would create exactly the same issues for them? The concern for legal officers on both sides of the border is that they do not like it when parliamentarians overturn the decisions of the courts, but it has to be done this time, because some of the postmasters will not live to see their compensation if we do not get on with it soon.

Marion Fellows Portrait Marion Fellows
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I thank my hon. Friend for that intervention. I heard the Minister chuntering from a sedentary position that Scottish Ministers should take responsibility for this.

Marion Fellows Portrait Marion Fellows
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They will, but they did not cause the need for this Bill. This is a Westminster issue and should be sorted out here.

Madam Deputy Speaker, I am incensed—people may have realised that. This is not fake anger: this is a real issue for those men who came down here today. They were representative of the 100 sub-postmasters and mistresses in Scotland, and we have not even started to talk about the effect on their families and those who have died. Two years it took Robert Thomson to go through court, during which time his mother died, and it is the same story right across all the postmasters who have lost family members, and postmasters have committed suicide. This has to be sorted.

I go back to my original point. Scottish postmasters will be behind the curve when it comes to applying for the due compensation they are entitled to if they are not exonerated at the same time as the rest of the postmasters in the UK. This is a piece of nonsense. Get it done for Scotland. The Government have done it for Northern Ireland. Get it done for Scotland.

Kevin Hollinrake Portrait The Minister of State, Department for Business and Trade (Kevin Hollinrake)
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I thank the hon. Member for Motherwell and Wishaw (Marion Fellows) for her remarks and her engagement. It has always been a pleasure to work with her both in the Chamber and in other areas. Yes, we have worked cross-party, and I have been very keen to do that all the way through on these matters, but that does not of course mean we always agree.

I was very grateful to have the opportunity to meet the hon. Lady earlier with the Scottish postmasters she referred to. I am sorry that they have not been able to attend this debate. However, at that point I was able to explain to those postmasters why the Government oppose this motion, as our position remains unchanged that this Bill should not be amended to include Scotland.

Marion Fellows Portrait Marion Fellows
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I just want to ask the Minister: what did the Scottish postmasters say to you—

Rosie Winterton Portrait Madam Deputy Speaker (Dame Rosie Winterton)
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Order. The hon. Lady knows she must not refer directly to the Minister in that way, but do so through the Chair.

Marion Fellows Portrait Marion Fellows
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I beg your pardon, Madam Deputy Speaker. What did the Scottish sub-postmasters say to the Minister this afternoon? Were they pleased, were they happy and did they feel they were getting justice through this action?

Kevin Hollinrake Portrait Kevin Hollinrake
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I listened to the postmasters very carefully, and of course they would prefer us to legislate in the way the hon. Lady describes. I set out very clearly the reasons why we would not do so, and I think they heard the concerns we raised about how we think we should proceed.

Scotland has a historically separate legal jurisdiction, and the Lord Advocate and the Crown Office and Procurator Fiscal Service have a unique role in prosecutions in Scotland. We feel it is more appropriate for the Scottish Government to bring forward proposals to address prosecutions on this matter in Scotland, and for those to be scrutinised by the Scottish Parliament. The First Minister has previously made public comments suggesting that the UK Government’s approach to the criteria in our legislation was too broad in relation to the convictions it would quash. He is reported, in The National on 27 March, to have said that he wanted

“to make sure that people who have genuinely committed a crime…do not then have access to…compensation.”

We have been clear from the start that there is a real risk of that happening with our approach.

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Rushanara Ali Portrait Rushanara Ali (Bethnal Green and Bow) (Lab)
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The Horizon scandal is one of the most egregious miscarriages of justice in British history, and it has robbed sub-postmasters of their lives, their liberty and their livelihoods. We welcome the Government’s inclusion of Northern Ireland in the territorial scope of this Bill following our representations, including on Second Reading.

We agree that sub-postmasters in Scotland who have been victims of this devastating scandal need urgent exoneration and compensation as much as cases in England, Wales and Northern Ireland. I want to commend the hon. Member for Motherwell and Wishaw (Marion Fellows) for her work in tirelessly campaigning for victims across the United Kingdom, especially in Scotland, and her work in the APPG. However, the case of Scotland’s inclusion provides a unique set of issues. Unlike in Northern Ireland, there has not been united support for Scotland’s inclusion in the Bill. Both the Scottish judiciary and a number of MSPs have publicly opposed this course of action.

Marion Fellows Portrait Marion Fellows
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Does the hon. Lady agree with me that many people in England, Wales and Northern Ireland have vociferously opposed the Bill, but actually understand, as people do in Scotland, that it is necessary and that it is a pragmatic solution to a situation that has been going on for far too long?

Rushanara Ali Portrait Rushanara Ali
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I thank the hon. Lady for her intervention, but the reality is that this is a very unusual Bill, and there are serious issues, which we will go on to debate, about the separation of powers between the legislature and the judiciary.

In a context where, as I have said, there is disagreement between the judiciary and the legislature in Scotland, we believe it is not appropriate for the United Kingdom Parliament to overrule the Scottish judiciary. It should be for Holyrood to make that call and pass a mirror Bill. Therefore, we intend to abstain on this motion to include Scotland.

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Alistair Carmichael Portrait Mr Carmichael
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I am intrigued to know what that final question about shutting down the Scottish Parliament is about, but it is open to the Scottish Parliament to deal with such matters through an emergency procedure. That would be sensible, and it would bring sub-postmasters across the whole United Kingdom to exactly the same place at the end of the day. That can be done in a matter of days, as I am sure the hon. Gentleman is aware. We have heard from others that the legislation is drafted and ready to go, so as a matter of politics, what is it that the Scottish National party does not want to admit?

Marion Fellows Portrait Marion Fellows
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As far as I am concerned, and as far as the SNP is concerned, politics does not come into this. It is about getting justice for Scottish sub-postmasters and postmasters across the rest of the United Kingdom at the same time.

Rosie Winterton Portrait Madam Deputy Speaker (Dame Rosie Winterton)
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I want to make it clear that interventions need to be questions to the person making the speech.

Marion Fellows Portrait Marion Fellows
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Does the right hon. Gentleman not agree?

Rosie Winterton Portrait Madam Deputy Speaker
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The hon. Lady has got it!

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Michael Shanks Portrait Michael Shanks (Rutherglen and Hamilton West) (Lab)
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I start by paying tribute to several people across this House from a number of different parties. When I arrived here last year, I could tell they had already been working hard on this issue, including my right hon. Friend the Member for North Durham (Mr Jones) and the hon. Member for Motherwell and Wishaw (Marion Fellows). There is consensus across the House that this huge injustice must be righted. The question, as we have heard from a number of people, is how that is done in Scotland, and that is what I want to speak to briefly.

I want to make two points. First, there is the question of speed, which we have heard about a number of times, but more importantly, there is the question of accountability. Accountability is important. The Scottish Parliament has responsibility for justice in Scotland. Scotland has always had a separate legal system—since long before the Scottish Parliament was re-established—and, as we have heard, there are the questions of the Lord Advocate’s position, of how convictions were taken forward not by the Post Office by but by the Crown, of the basis of evidence used—

Marion Fellows Portrait Marion Fellows
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Will the hon. Gentleman give way?

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Michael Shanks Portrait Michael Shanks
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That is absolutely right. The key point is that there is no question about the Post Office being held to account for the institutional levels of cover-up—

Marion Fellows Portrait Marion Fellows
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Will the hon. Gentleman give way?

Michael Shanks Portrait Michael Shanks
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May I just make the point and then I will give way? The Post Office must be held to account for that institutional cover-up, and it is the responsibility of this place and the inquiry to look into that, but the prosecutions in Scotland were taken forward by the Crown Office, which is responsible to the Scottish Parliament. That is the point that I am making about accountability.

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Marion Fellows Portrait Marion Fellows
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Would the hon. Gentleman agree that accountable for all of this is Post Office Ltd, which is wholly owned by the UK Government as its single shareholder, and that the UK Government took their eye off the ball, did not follow through, and took years to admit that there was a problem in the first place, and that if the UK Government caused this, they should fix it?

Michael Shanks Portrait Michael Shanks
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I am happy to agree with the hon. Lady about the responsibility of Post Office Ltd—I said that a few moments ago—but the prosecutions based on that Post Office evidence were taken forward by the Crown Office. There is responsibility to go around here. [Interruption.] I will just answer the point, if that is okay.

The evidence absolutely came from a flawed system, and Post Office Ltd must be held to account. That does not deal with how prosecutions in Scotland were taken forward not just on evidence from Horizon but with corroboration from other sources.

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Michael Shanks Portrait Michael Shanks
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No. I have taken a lot of interventions and am going to make a bit of progress.

My second point is about timing. I do not accept the SNP’s argument at all that the timing is an issue. I have heard the Minister make the point on a number of occasions that the compensation regime will be available to people who have been exonerated—by whatever means that is—at the moment they are exonerated, so there is no question about that.

On the point about the Scottish Parliament not being able to rush through legislation, it does not have the same processes as the Northern Ireland Assembly—it does not have to go through a lengthy consultation process—so it could introduce a Bill tomorrow and have it passed before there is a vote on any of the confidence motions on Thursday. Indeed, in 2020, the Scottish Parliament passed an emergency Bill on covid—a considerably more difficult piece of legislation, stretching to 138 pages—in just two days, and the idea that this Bill is somehow more complicated than that is ridiculous.

There is no reason why the Scottish Parliament cannot take responsibility and introduce a Bill now. Indeed, if there was a question about not being able to finalise the Bill until the UK Bill had passed, the Scottish Parliament could take it all the way to the final amendment stage and amend it as necessary. But actually, again, the Minister has said that the Scottish Bill does not have to mirror directly the UK legislation for people to have access to the same compensation, which is what the hon. Member for Motherwell and Wishaw and I both want to see.

If the SNP is unwilling to act in the Scottish Parliament to introduce the Bill, my colleague Michael Marra MSP has already drafted a Members’ Bill and will introduce that Bill this week.

Michael Shanks Portrait Michael Shanks
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If the SNP is unable to act, there will be no more dithering and there will be no more delays, because Labour will act. For that reason, I will not be supporting the SNP motion.

Marion Fellows Portrait Marion Fellows
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On a point of order, Madam Deputy Speaker. At no time have the Scottish Justice Secretary or the Scottish Parliament said that they will not pass legislation—

Rosie Winterton Portrait Madam Deputy Speaker (Dame Rosie Winterton)
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Order. The hon. Member for Rutherglen and Hamilton West (Michael Shanks) has finished his speech. If the hon. Lady would like to make a few comments, she can. She does not need to do so through a point of order.

Marion Fellows Portrait Marion Fellows
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Thank you, Madam Deputy Speaker. I have here the Justice Secretary in Scotland’s remarks. She said:

“We remain crystal clear that the best way to achieve parity for the sub-postmasters across the UK who were convicted on the basis of tainted evidence from the Post Office Horizon system is for the UK Government’s Bill to be extended to Scotland, as it has been for Northern Ireland, just as we have been clear if this isn’t the case we will bring forward a Scottish bill that mirrors the UK bill as quickly as possible.”

Question put.

Post Office (Horizon System) Offences Bill

Marion Fellows Excerpts
Jonathan Reynolds Portrait Jonathan Reynolds
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The hon. Gentleman will not mind my teasing him about a call for Unionism from the Scottish National party. [Interruption.] Just on this issue! As I understand it, the issue is that the Scottish judiciary does not support inclusion.

Jonathan Reynolds Portrait Jonathan Reynolds
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Hon. Members will have a chance to speak; I cannot speak for every part of the judiciary in the UK, but I believe that that is the issue. The nature of the always distinct legal system in Scotland is a key part of this, whereas in Northern Ireland it is slightly more complicated.

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Marion Fellows Portrait Marion Fellows (Motherwell and Wishaw) (SNP)
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I have been listening intently to everything that has been said today. I would like to reflect on the number of times I have stood here and talked about the Horizon business. I do not want to repeat my previous remarks, but I agree with everything that the hon. Member for Stalybridge and Hyde (Jonathan Reynolds) said, which has been repeated in this Chamber many times.

We are coming close to a point where we may see movement towards justice for sub-postmasters. The exoneration Bill is vital to that. I am deeply disappointed that Scotland has been left out of the Bill. I have been working hard with the right hon. Member for East Antrim (Sammy Wilson), and I have had many meetings with Northern Ireland MPs from all parties. If Northern Ireland is to be included in the Bill, I can see no reason why Scotland cannot be.

David Davis Portrait Sir David Davis
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I have every sympathy with the hon. Lady and in particular with Northern Irish Members on this matter. Northern Ireland is a very special case in so many ways, for reasons we all know. Is there a reason why the Scottish Parliament and the Scottish Government could not simply replicate the Bill and carry it through?

Marion Fellows Portrait Marion Fellows
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I thank the right hon. Gentleman for his intervention. There is absolutely no reason, and the Scottish Government are indeed prepared to do that. There is ongoing work on that, but it will mean that Scottish victims will have to wait longer for exoneration.

Alistair Carmichael Portrait Mr Carmichael
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The Scottish Parliament has provisions in its own Standing Orders for emergency procedures, just as we have. It would be open to it to do it in three days, if it chose to.

Marion Fellows Portrait Marion Fellows
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I thank the right hon. Gentleman for his intervention. I am surrounded by lawyerly people and I am not a lawyer. In fact, I sat in a room last night for a briefing where I was surrounded by lawyers and even the lawyers were agreeing that they could not agree on the right way forward. The right hon. Gentleman is absolutely correct, and the Scottish Government will do that, but they cannot do it until we see what happens with the Bill as it is brought towards enactment and until we can take into consideration all the amendments that may be necessary for Northern Ireland. That will create a delay. Yes, the Scottish Government can—I cannot say they will, because I am not a Member of the Scottish Parliament or the Scottish Government—and it is possible for the Scottish Parliament to pass a Bill in three days, but it must be aligned with the exoneration Bill passed here. Otherwise, Scottish victims will not be treated equitably and fairly.

On 10 January, the Minister spoke in this place to, I believe, the hon. Member for Edinburgh West (Christine Jardine) and said he saw no reason at that point why there could not be UK legislation. At an Interministerial Standing Committee on 12 March, the Secretary of State for Levelling Up, Housing and Communities said that he saw no reason why that could not happen. Yet a few days after that the Bill arrived in Scotland with no mention of Scotland at all. It is the Scottish Government’s belief that the Bill could be amended to take into consideration the differences in legal terms. For example, amendments would be needed to bring about alignment on embezzlement and to cover all the different crimes, if you like—well, not crimes, because the sub-postmasters did nothing wrong—so that the Bill would apply in Scotland. The Bill could clear the decks of all the things sub-postmasters were charged with and convicted for, so it is all possible. The issue is one of timing, with sub-postmasters in Scotland being told, “Okay, you’ve waited, but you’ll have to wait longer.”

In this place, and right across the work I have done over the past few years on the Post Office, there has always been cross-party agreement on getting things sorted out for the victims. As the hon. Member for Stalybridge and Hyde said, that is the point of the whole thing. It is about the victims. It is about what has happened since “Mr Bates vs the Post Office” was broadcast. I sat with my daughter-in-law, who is herself a lawyer—I don’t hold that against her—and she kept saying, “Is this true, Marion? Is this true?” and I had to say that yes, it was.

Kevin Hollinrake Portrait Kevin Hollinrake
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I thank the hon. Lady once again for the all the work she does. As I have said to her on a number of occasions, our officials are working together on a weekly basis and I have met my counterparts in Scotland on this issue. She will acknowledge that the UK Parliament is taking a political risk. This is unprecedented and unpopular in some quarters. Does she not accept that, as politicians, there are times when we have to stand up and accept the political responsibility and accountability for doing the right thing in our own jurisdictions, just in the way the right hon. Member for Orkney and Shetland (Mr Carmichael) said?

Marion Fellows Portrait Marion Fellows
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I agree with the Minister—of course I do—but let us think back to the victims. Scottish victims should not have to wait any longer than victims across the rest of the United Kingdom. If the Scottish Government were to expedite a Bill in the Scottish Parliament without knowing exactly where this Bill will end up—already today there has been talk of amendments to it to help Northern Ireland—then that would not be right either.

Jonathan Reynolds Portrait Jonathan Reynolds
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Will the hon. Lady give way?

Marion Fellows Portrait Marion Fellows
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I want to move on, but I will.

Jonathan Reynolds Portrait Jonathan Reynolds
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I am extremely grateful to the hon. Lady. I am absolutely willing to listen to the case she is making—that we could, in theory, amend the Bill to cover Scotland—but I do not, if I am being honest, follow the logic that it would take longer to pass a Bill affecting Scottish sub-postmasters in the Scottish Parliament than to amend the Bill before us. I do not agree that extending it to Northern Ireland would in any way adversely affect the Scottish situation.

Marion Fellows Portrait Marion Fellows
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The hon. Member has every right to disagree with me, but I come back to my main point. The Scottish legislation would have to mirror what is done here so we treat victims across the piece the same way, but there would have to be certain amendments made because of Scots law. That is my point: we cannot do it in Scotland until it is done here, so that it mirrors what has been done here.

The other point I want to make is that this has nothing to do with the Scottish Parliament or the Northern Ireland Assembly. The whole business of Horizon arose here under Post Office Ltd, which is wholly owned by the UK Government as the single shareholder. There is therefore a logic to saying that the mess was made here, so it should be cleared up here. No matter whether there ends up being a separate Bill in Scotland with this Bill relating only to England and Wales, everyone across parties agrees that this must be sorted. The Bill is not really what we would all want to do—it is unprecedented, there are risks and so on—but at the end of the day it has to be done. The Scottish Government understand and support that, but want it done here to cover everyone.

Shailesh Vara Portrait Shailesh Vara
- Hansard - - - Excerpts

I am most grateful to the hon. Lady, who has been very generous in giving way. She says that the Scottish Government want to see what happens here. We have heard that a Bill can be passed in three days. Once the Bill goes through this place, then in a matter of days, not weeks, it can be replicated in Scotland and passed in 72 hours. Given that the matter has been going on for years and years and years, I fail to see what the big issue is with having a few days more so that a Bill can get through in Scotland.

Marion Fellows Portrait Marion Fellows
- Hansard - -

There is absolutely no guarantee that it would just be a few days more. There are the different timings of Scottish Parliament sittings and a lot of other considerations that the right hon. Gentleman will not know about and does not normally need to know about. I will be seeking to amend the Bill—I will take advice and then attempt to do what is going to be done for Northern Ireland. I am well aware that that may seem a futile exercise to some, but this is democracy and this is what has to be done from a Scottish perspective, and I am more than happy to take that on.

I would like to close with some messages that have already come out from Members across the Chamber.As a constituency MP, I first had a meeting with sub-postmasters in 2015, two months after I was elected. I had no notion of what Horizon was, or of the damage that it was doing to my sub-postmasters. Over the last almost nine years—and more recently, since “Mr Bates vs the Post Office”—I have had to listen to grown men, and also women, trying not to cry because of what the Post Office had done to them. None of them, not one, was actually charged or prosecuted. They just went on putting their own hard-earned cash into their tills so that they could open their post offices the next morning. I have pleaded with all those people, and I plead again with people across the UK who have been affected, to come forward, but the problem is the lack of trust. Those who were prosecuted are suffering, but so are those who were not. They are suffering from post-traumatic stress disorder. They are traumatised by what has happened to them.

I also want to raise, very briefly, the case of those who worked for partners of the post office: people who worked for the Union of Shop, Distributive and Allied Workers, Scotmid or CJ Lang who were sacked by their employers and could not get an equivalent job, and who were depressed and ill for years as a result. We really must take those people into consideration. I understand that a Bill cannot be a magic wand and make everything go away, but I think it imperative for the House to keep at it. I agree with my right hon. Friend—and I call him that gladly—the Member for North Durham (Mr Jones) that we cannot impose a time limit, because it might mean that people did not receive justice or redress.

I should be happy to speak to the Minister later and catch up with all the to-ings and fro-ings between Scotland and this place, but I still stand here saying, “This is what the Scottish Government have looked at, and this is what they want, because they think it is best for the victims in Scotland.”

--- Later in debate ---
Sammy Wilson Portrait Sammy Wilson
- Hansard - - - Excerpts

I am not going to enter into a debate about Scotland, because I do not have enough knowledge of the situation, but surely the way around this issue relates to the individuals responsible for having taken the prosecutions and for advising the Scottish Government. That is perhaps where we should be looking. If they are all satisfied that the decision should be taken here in Westminster, why not include that in the Bill? I am sure the Scottish nationalists can argue their case very well.

The one thing I would say as a Unionist is that I am pleased that the SNP recognises that there is a role for Westminster. If the Scottish Government want to give some of their powers to Westminster on this particular issue, I will take that as a Unionist win.

Marion Fellows Portrait Marion Fellows
- Hansard - -

The fact is that the Scottish Government want the Bill to go through for all four nations of the UK, and they would give a legislative consent motion for that to happen. That surely indicates that in this case, as the right hon. Member has already said, this issue arose here and should be sorted out here. In Scotland and in England, there were prosecutions by the CPS; the prosecutions that this place will exonerate through the Bill are not only Post Office prosecutions.

Sammy Wilson Portrait Sammy Wilson
- Hansard - - - Excerpts

I am not going to become a kind of spokesperson for the Scottish National party on this particular issue; I am arguing the case for Northern Ireland, but I also believe there is a parallel. I know that there will be differences, and we have heard the arguments back and forward today as to why Scotland might be treated differently and everything else, but there is a sour taste in people’s mouths because of the injustice over the Horizon scandal. Let us not let that persist.

If there is a way of sweetening the issue and dealing with it respectfully, impacting on everybody and ensuring that those who have had this cloud hanging over them—those who have lost out financially and in many other ways—can be exonerated and sorted out, let us do it quickly and fairly and ensure that we put this injustice behind us as quickly as we can.

--- Later in debate ---
Alistair Carmichael Portrait Mr Carmichael
- Hansard - - - Excerpts

I do not really need to answer that, so I will take the hon. Lady’s intervention.

Marion Fellows Portrait Marion Fellows
- Hansard - -

I thank the right hon. Gentleman. One of the issues about timing, and it is about timing, is that I think everyone would agree that it is best that every victim is exonerated at the same time. As we do not yet have the programme for the timing of the Committee and Third Reading stages, it is possible that the Scottish Parliament could be in recess. It will be in recess as early as 29 June, a full month before this place.

Alistair Carmichael Portrait Mr Carmichael
- Hansard - - - Excerpts

That is a political decision for the Scottish Government, who control the Scottish Parliament’s business, to take.

Marion Fellows Portrait Marion Fellows
- Hansard - -

May I gently correct the right hon. Gentleman? The recess dates are not set by the Scottish Government; they are set by the parliamentary board.

Alistair Carmichael Portrait Mr Carmichael
- Hansard - - - Excerpts

They are set by the Parliamentary Bureau, of which the majority of members come from the SNP and the Greens. I have kept this fairly broad in its terms. Can I just say gently to the hon. Lady that if the Scottish Government, instead of trying to evade political accountability, would take their responsibilities seriously and get on with it, they would get on with the drafting of the necessary legislation? If they want to wait and see how it all works here, to see if there are further amendments, then of course they can do so. They should be mindful of the fact that, apart from this one point, on the substantive provisions in the Bill there is complete unanimity across all parties in the House. So I would not see this as a Bill that is likely to attract amendment on the substance.

If the hon. Lady wishes to introduce her amendments relating to jurisdiction at a later stage, then that is another matter altogether. If we consider the consequences for the substance of the Bill, we would effectively be writing a whole new part of it. For example, if we have regard to the offences for which compensation is to be paid, very few are terms of art in Scots law, so we would be writing a new Bill to be inserted here.

Why are the Scottish Government so resistant to getting on and doing what they are constitutionally charged to do, when they could do it if they started now, in a timescale that brings everybody to the same place? The hon. Lady herself said that compensation had to be done equitably and fairly. I put it to her and to her colleagues that the consequence of their route being followed would be Scottish victims having justice of a lesser quality, because the decisions about prosecution are accountable to this House in England, and there would be no such accountability for decisions on prosecution if they were to be taken in the Scottish Parliament.

Post Office Legislation

Marion Fellows Excerpts
Wednesday 13th March 2024

(1 month, 2 weeks ago)

Commons Chamber
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Marion Fellows Portrait Marion Fellows (Motherwell and Wishaw) (SNP)
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Thank you, Mr Speaker, and apologies for being slightly late. I thank the Minister for giving me prior sight of his statement. I welcome the announcement of the legislation. It will hopefully go a long way to speeding up full and fair financial redress for a large number of Horizon victims, and will bring them closer to justice. Furthermore, I welcome the enhanced financial redress for those who experienced Horizon-related shortfalls, and the fact that those who have already settled for less than £75,000 will have their redress topped up.

I pay tribute to the Minister for his hard work on this, to the Horizon compensation advisory board for its sterling work, and to Sir Wyn Williams and his inquiry for their ongoing work. Most of all, I pay tribute to the victims, following the unimaginable pain that they have been forced to endure at the hands of Post Office Ltd and successive UK Governments. I hope that today’s announcement can give them some hope, and that there is an end in sight to this sorry chapter.

I welcome the administration of financial redress schemes being taken out of the hands of Post Office Ltd —not before time. Post Office Ltd has demonstrated obfuscation and incompetence at every stage. From a Scottish perspective—I am sure my Northern Irish colleagues will agree with me—I am deeply disappointed that the legislation is confined to England and Wales only. That needs to be addressed. We should include Scotland and Northern Ireland to ensure parity. The Westminster Parliament is sovereign, but the Scottish Parliament can be challenged on its legislation, and this needs to be looked at.

The devolution process also risks slowing things down. Will the Minister guarantee today that any relevant orders under section 104 of the Scotland Act 1998 will be processed quickly by his Government? Scotland has no direct equivalent Minister for postal affairs, as only Westminster and his Department have a remit for the Post Office. Will he ensure that the Bill contains provisions requiring Post Office Ltd to fully co-operate with the Scottish Government and to supply all needed materials? It is vital that victims in Scotland and Northern Ireland do not have to wait any longer for justice than their English and Welsh counterparts. Victims across these isles suffered enormously at the hands of a wholly reserved institution, so complete parity is essential.

Kevin Hollinrake Portrait Kevin Hollinrake
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I thank the hon. Lady again for all her work in this area. She has been a tireless campaigner. We would all like to be further along, but she has made an important contribution to our work.

The hon. Lady is right to say that victims should be front and centre when it comes to compensation, which must be delivered fairly and as quickly as possible. Some of the changes I have announced today, including in my statement, have been brought forward on the basis of feedback from victims and their legal representatives. We are listening to them, and we will make sure that we deliver any changes where we can.

I fully understand the hon. Lady’s point about Scotland and Northern Ireland, and she will understand the constitutional sensitivity of this area. These are tough decisions, and I understand that Scottish Ministers will have to make similar decisions. They can decide to do what we are doing and, if they do, we will support them in how they legislate. Given the sensitivities, we thought that, where justice is devolved, the devolved Administrations should make the decision. I again commit to making sure that we work across the piece, wherever we can, to deliver the consistent compensation that she requires, without forgetting that the redress schemes are UK-wide. As soon as people’s convictions are overturned, they will be able to access compensation, just as they can in England and Wales.

Post Office Board and Governance

Marion Fellows Excerpts
Wednesday 28th February 2024

(2 months ago)

Commons Chamber
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Marion Fellows Portrait Marion Fellows (Motherwell and Wishaw) (SNP)
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(Urgent Question): To ask the Secretary of State for Business and Trade if she will make a statement on what steps are being taken to restore public confidence in the Post Office board and governance following evidence taken at yesterday’s Business and Trade Committee.

Kevin Hollinrake Portrait The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)
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I sat there for five hours listening to all the evidence that was given to the Select Committee yesterday. Several serious allegations have now been made against the Government, my Department and its officials by Henry Staunton. His most recent revelation is that there is an ongoing HR investigation that involves both him and the Post Office CEO Nick Read. I have to say as a former chair that I clearly found that statement to the Select Committee highly unprofessional.

The fact that Nick Read is being investigated is evidence that no one is untouchable and the Post Office culture is changing. An investigation is of course not evidence that allegations are accurate. While Nick Read has co-operated fully, Mr Staunton tried to block the investigations looking at his conduct. It was this action, as well as his attempt to bypass the formal process to appoint a new director to the board, which led the Secretary of State to lose confidence in Mr Staunton. As was said in the Business and Trade Committee yesterday, board members felt so strongly about Mr Staunton’s conduct that they were going to resign. It was right that the Government decided to act.

Mr Staunton has now made a series of allegations which we strongly reject. He is using the Nick Read investigation to divert attention from the issues the Select Committee was discussing about his dismissal. The allegations made are also proving to be a further distraction from the victims of this injustice. His central allegation is that the Government told him to slow down compensation payments. Not a single person backed him up on this claim. My officials are clear that they have never been instructed to do this. Post Office executives are clear that such an instruction was never passed on to them. We have provided a letter from June 2023 from my Department to Mr Staunton telling him the opposite. His only evidence is a note of a conversation which is clearly about operational financing of the Post Office business; this is entirely different from compensation to sub- postmasters. The permanent secretary wrote recently to give her truthful account of what happened. We also released her office’s contemporaneous notes of that meeting.

Mr Staunton alleged that the Secretary of State refused to apologise to him after he learned of his dismissal from Sky News; this was not the case. He claimed there was pressure on Nick Read to send a letter to the Justice Secretary; this was not the case. He claimed the Secretary of State told him that someone has got to take the rap for the Horizon scandal and that was the reason for his dismissal; this was not the case.

The Post Office faces unprecedented challenges and needs to work at pace to deliver compensation to the thousands of postmasters who fell victim to a flawed IT system as well as continue the essential work to implement the necessary operational and cultural changes needed within the business. As we have repeatedly said, Post Office governance is a priority for the Government; that is why we acted swiftly to remove a chair about whom there were serious concerns and allegations and why we are working at pace to appoint an interim chair.

We of course recognise the seriousness of an investigation into individuals at the Post Office. I also recognise parliamentary and public concern and the need to ensure there is confidence in the Post Office leadership. I will therefore ask the Post Office to provide me with the findings of the investigation once it is completed. However, it is right to wait for this investigation to conclude before making any further judgment.

Marion Fellows Portrait Marion Fellows
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I am really disappointed that the Secretary of State herself is not here, but I thank the Minister the hon. Member for Thirsk and Malton (Kevin Hollinrake) for everything he does for post offices and am happy to work with him going forward.

Prominent Horizon victims are still saying financial redress is far too slow. Legal representatives of victims said yesterday that redress schemes are not working for victims—too much “lawyering” going on, too much obfuscation. Lawyers say complete claims might have settled for less than they were entitled to and might need to be revisited. Neil Hudgell suggested that August deadline target will not be met and the current compensation impasse could continue for another one or two years.

Henry Staunton’s claims persist. Why has the Prime Minister refused to back up the Secretary of State, refusing to repeat the claim that Staunton lied? This is the third time we have been here to find out about the circumstances of Mr Staunton’s departure. The last time the Secretary of State mentioned investigations into Staunton but failed to reveal an 80-page investigation into current CEO Nick Read. With all we have seen about the Secretary of State’s past assurances being undermined, how can we trust her firm assurances now?

Does the Secretary of State have faith in the Post Office board, which is clearly in total disarray? There were even claims that the chief executive officer, Nick Read, had threatened to resign over pay. Victims and the public have lost faith in the Post Office board and governance. When more than £1.2 billion of public money is being spent on financial redress, the taxpayer ought to have confidence that costs will not be driven up further by mismanagement. The evidence from yesterday’s Business and Trade Committee shows that the public and victims have no reason to be confident, as incompetence and obfuscation has marred the process until now. Sub-postmasters say that redress schemes are not working. Victims agree. The lawyers say that they are not working and the former chair of the Post Office says that they are not working. Why should we trust the Government, and what will the Minister do to fix this?

Kevin Hollinrake Portrait Kevin Hollinrake
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I should say that the Secretary of State is abroad at a World Trade Organisation conference.

I thank the hon. Lady once again from this Dispatch Box for all that she does on behalf of postmasters. Interestingly, in his evidence yesterday, Mr Staunton said that he had no concerns over the speed of compensation, which I think astounded both the hon. Lady and me. We have been fighting for years to try to improve the speed of compensation. That is just one more concern that people might have with Mr Staunton’s evidence, but it was clearly stated in one of his responses.

It is right that we constantly seek to improve the speed of compensation and to make sure that it is full and fair and is seen to be so. One reason that I spent all day listening to the evidence yesterday was to make sure that we are doing everything possible to accelerate compensation. I heard some interesting conversations in the evidence session, including ideas from Mr Hudgell and others on how we can accelerate compensation, which we are very keen to do.

The hon. Lady will know that the latest figures were quoted yesterday at the Select Committee hearing. On the group litigation order scheme, for example, 106 full claims have been submitted, 104 offers have been made, and 80 have been accepted without reference to the independent panel, which would tend to indicate that the offers being made are fair. The hon. Lady will also recognise from the announcements that we made on Monday during the statement that we have introduced a £450,000 interim compensation figure for when people submit their full claim for the overturned convictions. When an offer is made, we will provide 80% of that initial offer to claimants in the GLO scheme.

Interestingly, Henry Staunton seemed to think that the biggest concern with the compensation schemes was around the overturned convictions—he clearly said that yesterday—when the hon. Lady and every Member of this House knows that we announced legislation on Monday, and previously, that will overturn the convictions en masse, which is unprecedented. Obviously, that is the key to unlocking compensation. For all those reasons, we should not take Henry Staunton’s evidence at face value.

Post Office Horizon: Compensation and Legislation

Marion Fellows Excerpts
Monday 26th February 2024

(2 months ago)

Commons Chamber
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Kevin Hollinrake Portrait Kevin Hollinrake
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I thank my right hon. Friend for his question. He and I have had serious conversations about the future of the Post Office, which I am keen to continue to engage on. The current UKGI representative who sits on the Post Office board is Lorna Gratton, for whom I have a great deal of time and respect. Clearly it is important that the inquiry does its work to determine who did what in the past. As we look to the future, there are different opinions on how the Post Office should be governed. I am happy to keep those discussions ongoing with my right hon. Friend.

Marion Fellows Portrait Marion Fellows (Motherwell and Wishaw) (SNP)
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I thank the Minister for advance sight of his statement. Under successive Labour, Tory and Liberal Ministers, Post Office Ltd has overseen the largest miscarriage of justice in UK history. The Horizon scandal is just appalling. Unusually, both the Scottish and Northern Irish Governments have written to the UK Government, calling on them to rule on devolved affairs. It is vital that the UK Government work to ensure that exonerations in Scotland and Northern Ireland take place at the same time as those in England and Wales. [Interruption.] I do not find this amusing at all, but obviously the right hon. Member for Wokingham (John Redwood) does.

Marion Fellows Portrait Marion Fellows
- Hansard - -

The devolved Governments have no power or locus in the UK Post Office, so we really need to get this together. When will the legislation for both the exoneration and the redress schemes be published? The Scottish and Northern Irish Governments have written to ask for UK-wide legislation. We need the UK Government to act, because otherwise we cannot guarantee simultaneous legislation that is compatible and comparable with UK Government schemes. When will there be a response to the Scottish Government? This is really important.

There were reports yesterday that Post Office Ltd has only now brought in external investigators to investigate its internal investigators. Does that not seem quite late to the Minister? Why was that not done earlier? Is it just to avoid the appearance of continued cover-ups in Post Office Ltd?

Kevin Hollinrake Portrait Kevin Hollinrake
- View Speech - Hansard - - - Excerpts

I thank the hon. Lady for her work and for her points, including on the devolved issues around Scotland and Northern Ireland which she is right to raise. We considered that very carefully. When we originally set out to legislate, we were very clear that it would be for England and Wales only, but that we would work with our counterparts in the other parts of the United Kingdom on what they might do. Indeed, we have responded to them already. We met them last week before we announced the legislation in this statement to the House. We decided to legislate for England and Wales only, because justice is a devolved matter. As she said, the Post Office is UK-wide, but justice is a devolved matter in Scotland and Northern Ireland, and of course they have different legal systems in those areas and different prosecutors. Taking action to interfere with the independent judiciary is a very, very serious thing to do, of course, but we believe that it is the right way. We are working closely with our counterparts in the devolved Administrations to ensure they understand our legal approach and we are very happy to assist with any legislation they may seek to undertake in their own Parliaments.

On redress, there is a single UK-wide scheme, so once somebody’s conviction is overturned they can access redress in exactly the same way as anybody in England and Wales. On the investigation or investigators, that is initially a matter for the Post Office but also for the inquiry to see what happened in the past. There is little point in the huge expense of setting up a public inquiry, as Members called for, and then seeking to do the inquiry’s work ourselves. We need to see exactly what the inquiry makes of that and of many other issues.

Post Office Horizon Scandal

Marion Fellows Excerpts
Thursday 22nd February 2024

(2 months, 1 week ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

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This information is provided by Parallel Parliament and does not comprise part of the offical record

Lindsay Hoyle Portrait Mr Speaker
- Hansard - - - Excerpts

I call the SNP spokesperson.

Marion Fellows Portrait Marion Fellows (Motherwell and Wishaw) (SNP)
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Documents published this week by the BBC reveal that the Swift review, dated February 2016, noted that Post Office Ltd “had always known” about the balancing transaction capability that allowed transactions to be addended remotely, which is what happened. The lawyers for Post Office Ltd did nothing about that, and many people still do not trust it. A letter has been circulated, and the right hon. Member for North Durham (Mr Jones) deserves all the praise we can give him today. I have a copy of his memo, which says that anyone can write to him on any issue and get advice on how to pursue claims.

The Minister has given us a list of percentages and so on, but it is still not fast enough. It is still not good enough, and one of the reasons is that Post Office Ltd is still not trusted; people want nothing to do with it. I cannot fix that, but I do not think that the spat between the Secretary of State and Henry Staunton this week did anything to increase sub-postmasters’ confidence, and we really need to get this sorted. Yes, the Horizon shortfall scheme has been well managed in some regards, and claims are going through and being paid, but how much is being paid? So many sub-postmasters are getting derisory offers—not just people in the GLO scheme, but normal, everyday sub-postmasters who have been putting in money for years. We need to get this sorted. I appeal to all sub-postmasters affected to put in a claim.

Kevin Hollinrake Portrait Kevin Hollinrake
- View Speech - Hansard - - - Excerpts

I entirely agree with the hon. Lady on that point and on a number of other points she raised, and I thank her again for the work she has done in this area for many years. I, too, am concerned about some of the information that came to light this week, and the public inquiry is there to examine any allegations relating to who knew what and when. It would be wrong of us to duplicate the inquiry’s efforts, because it is a public inquiry that has the powers to summon witnesses to give evidence and to carry out other forms of evidence gathering, which is the right way to do this. I agree with the hon. Lady that compensation cannot come fast enough and that Post Office Ltd has to rebuild trust not just with the wider public; key to this are the postmasters.

Yes, of course we want to make sure that people get fair compensation. May I point gently to the performance so far of the group litigation order scheme? Fifty-eight full claims have been received, 48 offers have been made and 41 have been accepted without going to the next level, which is the independent panel. That tends to indicate that those offers are fair, because people have recourse to the appeal process. I am aware of one or two high-profile cases where people say they have not been offered a fair amount. I cannot talk about individual cases, but we urge any of those individuals to go to the next stage of the process, which is the independent panel. The whole scheme is overseen by Sir Ross Cranston, who has a very good reputation both in this House and further afield. We absolutely believe that the process will offer fair compensation, but we urge people to return to the table and ensure that their claim is properly considered by all means available.

Post Office Governance and Horizon Compensation Schemes

Marion Fellows Excerpts
Monday 19th February 2024

(2 months, 1 week ago)

Commons Chamber
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Marion Fellows Portrait Marion Fellows (Motherwell and Wishaw) (SNP)
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I am at a loss today: another Monday, another Post Office scandal. I have tried very hard to pull together my thoughts on the statement, what was said in The Sunday Times, and what was said in this place less than two weeks ago when I led a Backbench Business debate on the culture of Post Office management.

I will ask the Secretary of State a few questions. Will she place on the record whether Nick Read wrote to the Justice Secretary last month defending the convictions, saying that some postmasters were guilty? That is a serious allegation, and I would really like to have an answer.

There has been talk all morning about damaging confidence in the compensation schemes. If there is confidence in them, can the Secretary of State explain why so many leading sub-postmasters affected by the scandal were given such derisory offers, months and months late? That is just not on. The Secretary of State cannot say that Henry Staunton damaged the compensation schemes; it was down to the Government and Post Office Ltd.

Is the Secretary of State aware that Post Office Ltd still employs 40 investigators who secured convictions? I agree with what the hon. Member for Stalybridge and Hyde (Jonathan Reynolds) said: exoneration must be hurried up and compensation must be paid sooner rather than later. I have said that every month for the last nine months.

Kemi Badenoch Portrait Kemi Badenoch
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The hon. Lady asks multiple questions. The first is about a letter written by Nick Read, Post Office’s chief executive, to the Justice Secretary. What I can say is that UKGI and Post Office Ltd have both vehemently denied that Nick Read was put under any pressure to write the letter she refers to.

On the risks of making a decision on blanket exoneration, the postal affairs Minister, my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake), has said repeatedly that we have been faced with a dilemma: either to accept the present problem of many people carrying the unjustified slur of conviction, or to accept that an unknown number of people who have genuinely stolen from their post offices will be exonerated and perhaps even compensated. That is the case, and it is certainly what the Government believe. What she says about people being put under pressure to write a letter is something that UKGI and Post Office Ltd have both vehemently denied.

The hon. Lady repeats Mr Staunton’s allegations, but I have already given a statement saying that they are completely false. She asks about individual cases of people who have been paid. I cannot comment on individual cases, but I would like to clarify that the main scheme in place under Henry Staunton’s watch was the Horizon shortfall scheme. Some 2,417 people were made offers within the original deadline. One hundred per cent have received offers, but 84% have accepted offers. I just wanted to clarify my previous comments.

On the 40 prosecutors still working for Post Office, I have had multiple people giving different bits of information. The inquiry is looking at that and will get to the bottom of it.

Post Office Management Culture

Marion Fellows Excerpts
Thursday 8th February 2024

(2 months, 3 weeks ago)

Commons Chamber
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Marion Fellows Portrait Marion Fellows (Motherwell and Wishaw) (SNP) [R]
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I beg to move,

That this House has considered the management culture of the Post Office.

I thank the Backbench Business Committee for allowing this debate. I spoke in Westminster Hall on this very subject in July 2023, but it is even more pertinent now.

The Horizon IT scandal resulted from the Post Office’s management culture. In his March 2019 judgment on Bates and others v. Post Office Limited, Mr Justice Fraser stated:

“There seems to be a culture of secrecy and excessive confidentiality generally within the Post Office, but particularly focused on Horizon.”

Following this damning judgment, Nick Read, who had been appointed as chief executive officer, set about changing the management culture of Post Office Ltd when he took over in September 2019. In a letter to the Select Committee on Business, Energy and Industrial Strategy in June 2021, he stated that he was

“undertaking to drive a culture of genuine commercial partnership between Post Office and postmasters with openness and transparency at its core…a major programme of improvement has been underway. The goal is to overhaul the culture of the organisation”.

I reiterate his words: “openness and transparency” and

“to overhaul the culture of the organisation”.

Since last July, we have seen a spate of historical scandals emanate from Sir Wyn Williams’s statutory inquiry, from Post Office staff pursuing prosecutions despite knowing of Horizon issues, to others boastfully emailing colleagues to celebrate having sent innocent sub-postmasters to jail, and auditors omitting evidence in witness statements. It has been another shameful chapter in the Post Office’s history and, at the outset, I commend the work of the inquiry for bringing these issues and many others to light.

It is worth pointing out that more than 40 current management staff were there throughout the Horizon scandal period. Some have given evidence to the inquiry demonstrating elements of the toxic management culture that has gone on too long. The continual disclosures that have blighted the inquiry appear to be another “spanner in the works,” as one victim said. The clear case of obfuscation on the watch of the current management of Post Office Ltd suggests that very little has changed in the organisation.

Amy Callaghan Portrait Amy Callaghan (East Dunbartonshire) (SNP)
- Hansard - - - Excerpts

My hon. Friend is making a powerful opening speech, and I commend her efforts on this issue more generally. Does she agree with me and many of my constituents in East Dunbartonshire that the Post Office has a difficult culture of secrecy? That culture was highlighted by the ITV drama “Mr Bates vs The Post Office”, which resonated with so many of our constituents. Does she agree that sub-postmasters were othered by Post Office Ltd and the Government, and that they were not listened to or respected?

Marion Fellows Portrait Marion Fellows
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I absolutely agree. The ITV drama exposed what happened, despite numerous efforts by many distinguished people in this place and the other place, by journalists such as Nick Wallis and by Computer Weekly. Many thousands of people knew about this scandal, but not the general public.

Alistair Carmichael Portrait Mr Alistair Carmichael (Orkney and Shetland) (LD)
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I congratulate the hon. Lady on securing this debate. She has heard me speak often enough about the culture in the Post Office. Does she agree that following the money is often a good approach? Last year, the cost of administering the Post Office centrally went up by 10%, but the money going to sub-postmasters went down by 2%. When those figures are reversed, we will know that there has been a genuine change of culture within the Post Office.

Marion Fellows Portrait Marion Fellows
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I could not agree more with the right hon. Gentleman. I frequently agree with him on Post Office matters. This is important, because the all-party parliamentary group on post offices, of which he is a member and I am the chair, is a true cross-party group. There is no party that does not have a member of the APPG.

Sean Hudson of the Communication Workers Union described the management culture perfectly:

“Every serious management failure results in a culture of offering that failure up for external investigation at significant expense to POL and the taxpayer, without learning from those mistakes.”

It has since transpired that the legal fees for resolving disclosure issues in the past year alone cost £24 million. That money could have gone into the network to help struggling sub-postmasters, many of whom are working for below the minimum wage. For context, POL announced remuneration improvements this year of just £26 million, which in no way take into account the rise of costs and overheads. Some of the issues were only brought to light through the perseverance of campaigners through freedom of information requests that revealed that not all relevant evidence had been disclosed to the inquiry. Some of the issues outlined came to light before the transmission of ITV’s “Mr Bates vs The Post Office”, which has had a monumental impact on the public consciousness in Britain. It is important that that was beamed into front rooms across the nation. It has caused deep distrust of Post Office management among the general public.

With the words “openness and transparency” in mind, I want to bring to the attention of the House the case of my constituent Salman Aslam. Salman, or Sal, is a young man who ran a post office in my constituency for five years, before he walked away last year. Sal took over the post office from his father, when he was in remission from Hodgkin’s lymphoma. Sal began noticing shortfalls, which he continually plugged himself and which ranged from £4,000 to £16,000 at a time. He estimates that he has paid in about £100,000 of his own money. When audited last year, a shortfall doubled in front of his eyes to £80,000, He decided he could no longer go on, for the sake of his finances, and of his mental and physical health, which doctors were saying was under threat due to his levels of stress.

Throughout the five-year ordeal, Sal contacted the Post Office for help continually, but none was forthcoming, and after handing in his keys, the Post Office was not in touch for more than a year, leaving him in a perennial state of stress and fear. Sal went public with his story a few weeks ago—I had a hand in that—and once the story went out, Post Office Ltd immediately sprang into action and the communications department got in touch with him. That is not indicative of a change of culture. It echoes tales of the past that are all too familiar: desperate postmasters reaching out to POL for help, but receiving little in return; and communication from POL arriving only after some negative press.

Throughout the Horizon scandal, POL prioritised institutional reputation over the welfare of sub-postmasters, whom Mr Read himself recently told the Business and Trade Committee were the trusted asset that made the network what it is. Sal is one of many postmasters who have been in touch in the past weeks to tell me that they are experiencing shortfalls—not historical shortfalls, but ones that have occurred in the past year. Issues with Horizon appear to be continuing to this day, which is seriously concerning. Is the Minister aware of ongoing issues with Horizon? What has he done, or is he going to do, to address these? Sal, like all the victims who preceded him, is in this position through no fault of his own. Today, I call for an undertaking from the Government, the Post Office’s sole shareholder, that he will not be pursued for the ghost debt of £80,000, and I ask the Government to examine what kind of redress he can expect, having sunk so much of his own money into his post office to cover repeated shortfalls generated by Horizon. I have other constituents who are also in that position.

The culture of change that Nick Read has called for has not been apparent. In 2023, POL was rocked by scandals once again, with one appropriately named “bonusgate”. The former Chair of the Business and Trade Committee, the hon. Member for Bristol North West (Darren Jones), outlined the statutory definition of “false accounting” at a meeting and said:

“it seems to me that in the annual accounts that Post Office reported to Parliament there was false or misleading information presented that did lead to…financial gain”.

I said in July:

“That is the management culture of POL: bonuses for doing ‘a reasonable job’.”—[Official Report, 13 July 2023; Vol. 736, c. 161WH.]

We should compare that with the compensation schemes, which have been fraught with difficulty every step of the way. The fundamental principles of public life, including openness, honesty, and integrity, have not been upheld by the management of POL for decades.

Regrettably, even the compensation schemes established to address the injustices of the lamentable Horizon chapter are not immune from POL’s unjust approach. Dan Neidle, a renowned tax expert, soon realised that the schemes are designed to ensure that the lowest amount of compensation is paid out. The application forms are so legally intricate that even a legal expert such as Mr Neidle expressed the need for legal advice in order to complete them, but POL provides only token amounts for legal advice. The original absence of an option to claim punitive damages, something a lawyer would notice, puts applicants, many of whom are elderly and financially vulnerable, at risk of missing out on a significant portion of their compensation. I have seen a heavily redacted offer, and that is what happened to a sub-postmistress who was spat at by members of her local community after rumours of her stealing abounded in the neighbourhood. This is appalling, shameful and a stain on us all.

Kevin Hollinrake Portrait The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)
- Hansard - - - Excerpts

The hon. Lady remarked earlier about the number of people coming forward following the ITV series, and I am keen for people to do that. It is important to say to all postmasters that they will be treated fairly. I know that she has some concerns about that, and she is right to raise concerns where she has them. I, too, have concerns about some elements of the original Horizon shortfall scheme. We are looking at that, in conjunction with the advisory board, to see what might be done to make sure that those payments were fair.

Let me draw the hon. Lady’s attention to some of the stats on the new group litigation order scheme. We may be talking about the simpler cases coming forward here, but with 58 claims received, 52 offers have been made and 41 have been accepted without even a reference to the independent panel for people who are unhappy with the offers made. I do believe that the offers made are fair, but I am also happy to be challenged, in order to make sure that they are.

Marion Fellows Portrait Marion Fellows
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I thank the Minister for his intervention. I know that he has worked hard since he took over his post to make things better, but it would not be right if I did not continually and continuously push him.

Kevin Hollinrake Portrait Kevin Hollinrake
- Hansard - - - Excerpts

indicated assent.

Marion Fellows Portrait Marion Fellows
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He is acknowledging that.

At this point, it is worth reading out a letter from Professor Chris Hodges, the chair of the Horizon Compensation Advisory Board, who has been similarly scathing. He writes:

“Dear Nick Read,

My colleagues on the Advisory Board and I remain deeply unconvinced by the substance of what you say on legal issues. We continue to hear stories your former Sub-Postmasters and Mistresses are confused, intimidated and hurt by the behaviour of the Post Office and its lawyers in negotiating settlements generally and in continued use of legalistic terminology. This is especially true for the significant number who remain deeply traumatised, and who do not understand the practice of terminology of what they see as an aggressive approach to settling claims. This is irrespective of whether the language or behaviour may or may not be technically permissible, and irrespective of the fact that they may have legal representation. Your reliance of legal argument and legal terminology similarly does not impress us. We do not perceive demonstration of behaviour that is anything like a sympathetic understanding towards the people your organisation has harmed. We suggest that this should give you cause for deep concern.”

Andrew Bridgen Portrait Andrew Bridgen (North West Leicestershire) (Ind)
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The hon. Lady is giving an excellent speech about a sad chapter in the Post Office’s life. As someone involved from the beginning, back in 2012, Ron Warmington’s first investigation into the Post Office Horizon scandal concluded that the Post Office always tended to promote from within, which led to an incestuous management style and the keeping of secrets. Does the hon. Lady think that may be part of the problem?

--- Later in debate ---
Eleanor Laing Portrait Madam Deputy Speaker
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If the hon. Gentleman was not in the Chamber at the beginning of the hon. Lady’s speech, it is not in order for him to make an intervention in her speech. I have allowed it because the House is quiet this afternoon, but the rules are there for a good reason and they have to be observed. It is perfectly in order for the hon. Gentleman to intervene in another speech, later, after he has been in the Chamber for a while. I have to make that point because if I do not make an example of the hon. Gentleman now, on a quiet day, we will totally lose control on busy days, when lots of people want to do that, and it is not right. There are very few people here this afternoon and there is plenty of time, so in these circumstances I have allowed the hon. Gentleman to make his point and I will allow the hon. Lady to answer it.

Marion Fellows Portrait Marion Fellows
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I agree with the hon. Gentleman. He has been one of the people who has been pursuing this business for many years, and I pay tribute to him for that.

Shockingly, the Post Office’s attempt to suppress the truth continues as it cautions sub-postmasters under the Horizon shortfall scheme against mentioning compensation terms to anyone. The overall process of seeking fair compensation is described by one applicant as “soul destroying”, raising concerns about the added suffering imposed on those individuals who have already endured so much. Again, I have a personal example of a constituent I am trying to persuade to apply, but he is terrified because he signed a non-disclosure agreement. Because he has heard about how others have been treated, he is even more afraid to apply.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
- Hansard - - - Excerpts

I commend the hon. Lady for her speech. One issue that burdens me— I think it burdens us all in this House—is those who unfortunately took their own lives as a result of what has happened. I am conscious of the families left behind now carrying that burden. Does the hon. Lady agree that there should be some methodology to ensure families who are left without a loved one are helped through the process, which they might find equally terrifying and worrying?

Marion Fellows Portrait Marion Fellows
- Hansard - -

I absolutely agree with the hon. Gentleman. Many victims have described themselves as suffering from post-traumatic stress disorder. There is no scheme in place to help them and their families through what has been a traumatic and absolutely awful time for all of them, especially when someone has died before they have been vindicated. There are many recent examples of that.

Kevin Hollinrake Portrait Kevin Hollinrake
- Hansard - - - Excerpts

I am sorry to intervene on the hon. Lady yet again, but people might listen to her speech more than mine at the end, so I am keen to get a point on the record about the non-disclosure agreements. In evidence to the Select Committee, the Post Office has been quite clear—it is certainly our position—that nobody will be held to their non-disclosure agreement, so everybody should feel completely at liberty to discuss the terms of their settlement with Members of Parliament and others, as they feel appropriate. It is important to get that on the record.

Marion Fellows Portrait Marion Fellows
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I really thank the Minister for his intervention because hearing direct from the Minister that he will not be pursued will provide my constituent with some element of comfort. However, people are still traumatised years later because of the treatment they have had and it is hard for them to believe that people will not pursue them. I will show my constituent a clip of what the Minister just said.

I have met recently with Christopher Head, who is in the Gallery today. He is a Horizon victim and campaigner who, out of his own good will, helps others in applying for compensation. I do not want anyone else to add to Christopher’s burden because he is doing such a good job. He has told me of the difficulties people face and that he himself received an offer that was only a minuscule fraction of his estimated Horizon losses. Alan Bates recently talked about his offer as well.

Many sub-postmasters I have spoken to recently told me that they plugged shortfalls out of their own pocket for years. The Minister has advised those people to apply for the Horizon shortfall scheme, and I sincerely hope that many more people will take advantage of that. Will the Minister ask Post Office management to make their records of those payments available to individuals? Have Post Office management let the Minister know when they will give an estimate of the excess claimed in Horizon shortfalls, from the introduction of the system to the end of financial year 2019-20? That is important because all that excess money, which was not owed, was put into Post Office Ltd and management bonuses were paid on profits.

The Post Office network is in disarray. Sub-postmasters have no faith in the current management of Post Office Ltd to turn things around. What they see is an organisation that is top-heavy, with multiple layers of management and directors, who have self-interest at heart.

Andy Slaughter Portrait Andy Slaughter (Hammersmith) (Lab)
- Hansard - - - Excerpts

The hon. Lady is making an excellent speech. For obvious reasons, she has focused on the Horizon scandal, which has horrified the country, but the malaise within the Post Office management goes much further than that. Over the last 10 years, I have noticed the so-called temporary closure of many sub-offices that never reopen, and the loss of town centre post offices, some of which have been there for a century or more. Does she agree that the fundamental duty of the Post Office to run a viable network across the countries of the UK is simply not being fulfilled, and that lies at the door of Post Office management?

Marion Fellows Portrait Marion Fellows
- Hansard - -

I could not agree with the hon. Gentleman more. I have lost three post offices in the last year, but not one vacancy has been filled. As we all know, it is the poorest and most vulnerable who regularly use post offices. I will be applying to the Backbench Business Committee for another debate on the continuation of the network. The network also includes pick-up and drop-off offices—PUDOs, in the vernacular—that are not real post offices. Those who work there are not under Post Office terms and conditions, as they work for Payzone, which Post Office Ltd owns. The post office network is in disarray and postmasters have absolutely no faith in the current management. All the while, as the hon. Gentleman says, the network is crumbling, post offices are closing, and sub-postmasters are being asked to take on additional work for less pay, being punished for reducing hours as they try to keep overheads down in the middle of an economic crisis, and seeing their life investment lose value with each subsequent scandal that is uncovered. Lack of sub-postmaster support continues to this day, in stark contrast to the postmaster support policies championed by POL in the briefing that it gave me for this debate.

I have heard evidence of a recently widowed postmaster, who was told by a senior manager that Post Office Ltd

“does not have a roadmap for bereavement”,

meaning that people were left alone without support, except from their fellow sub-postmasters. In the same briefing, Post Office Ltd outlined that it had increased fees for banking deposits by 20%. As Richard Trinder, chair of Voice of the Postmaster, put it:

“20% of not a lot, is still not a lot.”

Communities are losing a vital social asset, and the post offices that remain are being powered by the altruistic nature of hard-working sub-postmasters, pillars of the community, who are running out of energy. In 2012, the societal value of POL was estimated to be £2 billion. Does the Minister have an updated figure? I do not expect an answer on that today.

The Minister’s announcement that the Government will legislate to exonerate convicted sub-postmasters is welcome. Lord Arbuthnot said that

“a mass problem requires a mass solution.”

Will the Minister commit to changing the governance format, which clearly has not worked for decades? It is high time for the Government to adopt a new approach, as the current arm’s length governance arrangement has allowed scandal after scandal to fester under the watch of successive Labour, Conservative and coalition Governments. Essentially, sub-postmasters find themselves subsidising a Government-owned network at significant personal cost. Moreover, when issues arise, they are left to navigate the path to justice on their own. The pressing need for genuine support for those on the frontline is evident. Will the Minister elaborate on the Government’s plan for the post office network, excluding PUDO services?

Government oversight has not solved any of the issues of the past, including Horizon. It is the hard work and tireless campaigning of sub-postmasters themselves, journalists such as Nick Wallis, and campaigners such as Alan Bates and Christopher Head, the Justice For Subpostmasters Alliance, Eleanor Shaikh, Dan Neidle, Tim McCormack, the CWU, Voice of the Postmaster, the National Federation of SubPostmasters, and many Members in this place past and present, that has continued to push the Government on the issue. Will the Minister, on record, please confirm that sub-postmaster organisations, such as Voice of the Postmaster and the CWU, will no longer be excluded from discussions with Post Office Ltd? It is essential that those who power the post office network are front and centre of any decision-making process that will carry the Post Office forward. For those who are not aware of this, the NFSP is financed by Post Office Ltd. I am making no judgment on how it performs in respect of its members, but we need a wider range of postmasters who will be consulted on and worked with if we are to change things going forward.

I have seen a rather large list of 23 directors in the senior leadership team at Post Office Ltd, not one of whom is a postmaster national executive director or a postmaster experience director, so when Nick Read speaks of putting

“postmasters right at the centre of the business”,

are the postmaster director roles simply window dressing?

Until postmasters have a say in all levels of the business, the culture will not change. Only recently, a communications director at POL, Richard Taylor, was suspended for saying that

“some of them were guilty.”

It says so much that he felt able to say that publicly.

As Bates v. Post Office Ltd has shown the nation, it was the hard-working community sub-postmasters who built the trusted reputation and social value of the Post Office over centuries, and it was those within management who pulled it down. If it is to be rebuilt, then the rebuild must be led by those community pillars once again.

Mr Deputy Speaker, the speech I had written was twice as long as this. I know that I have probably overrun my time, but I still have so much more to say. Change must happen. The fact that there will be a general election this year—that is without doubt—must not stand in the way of change that is so, so needed.

--- Later in debate ---
Marion Fellows Portrait Marion Fellows
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I thank everyone who has taken part in this debate. It was quite a surprise that so many people turned up on a Thursday as the House rises for a recess. I intend to go on with this. I intend to secure more and more debates to keep this issue, as far as possible, in the public eye and in the eye of the House, the Minister and any Government that follow.

I will start by mentioning Fujitsu, which was raised by my hon. Friend the Member for Inverclyde (Ronnie Cowan). I, too, have written to it. I have had no response as yet, but I am ever hopeful. The hon. Member for Wansbeck (Ian Lavery) has been doughty in his questioning in the Select Committee and I have had the privilege of listening to him. As with so many of us, he has had many difficult cases which sometimes leave you almost gasping for breath. They fire you, as they have me, with a real sense of injustice. We have to follow through and make sure things are done.

I thank the hon. Member for Chesham and Amersham (Sarah Green) for what she said about non-disclosure agreements, and I thank the Minister for his response. It is important for people who have been affected by the Horizon scandal or by working for or in conjunction with Post Office Ltd as sub-postmasters to be able to come forward with their experiences and speak about what has happened to them. I also want to give special thanks to the hon. Member for Strangford (Jim Shannon), who has been very supportive in every debate that I have initiated, on this and on other subjects.

Let me gently remind the Minister that the chief executive officer of Post Office Ltd has been in post for more than four years. I think that many people, especially postmasters, expected to see more change during this period than seems to have happened. I am extremely pleased that the Minister is to continue discussions with representatives of Voice of the Postmaster and the CWU, and I hope that he will, in turn, gently remind the CEO of Post Office Ltd that he should be talking to those organisations as well.

I am pleased that things have moved forward a bit. The Minister is pleased that those in the GLO scheme are accepting £600,000, but it should be borne in mind that people are accepting offers because they have simply had enough. They want nothing more to do with the whole process, and they are broken by it. That is something on which we should all reflect deeply.

I am grateful to you, Mr Deputy Speaker, for chairing the debate—in part—and, as I have said, I am grateful to all Members who have taken part in it. I do not often compare myself to Arnold Schwarzenegger, but I will be back.

Question put and agreed to.

Resolved,

That this House has considered the management culture of the Post Office.

Post Office Ltd

Marion Fellows Excerpts
Monday 29th January 2024

(3 months ago)

Commons Chamber
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Each Urgent Question requires a Government Minister to give a response on the debate topic.

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Marion Fellows Portrait Marion Fellows (Motherwell and Wishaw) (SNP)
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(Urgent Question): To ask the Secretary of State for Business and Trade if she will make a statement on the removal of Henry Staunton as Post Office Ltd chair and wider governance issues within the organisation.

Kevin Hollinrake Portrait The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)
- View Speech - Hansard - - - Excerpts

Following a conversation with the Secretary of State for Business and Trade over the weekend, Henry Staunton agreed to step down as chairman of the Post Office. An interim chair will be appointed shortly, and a recruitment process for a new chair will be launched in due course, in accordance with the governance code for public appointments. I will update the House when we have further details.

The current chairmanship was not proving effective, and we had a difficult decision: change course, or wait and hope that it improves. Given the challenging context for the Post Office and the importance of the role of chair, the Business Secretary took decisive action. I understand that Members would like more details around the decision, especially considering that the Post Office is rightly under heightened scrutiny at this time. I can confirm that there were issues beyond the handling of the Horizon scandal, but as hon. Members would expect, I am not able to comment on the specifics of individual human resources cases.

As the Business Secretary has said, Post Office governance is a priority for the Government. The Post Office is a public corporation; as such, the Post Office board has responsibility for the strategic direction of the company. While there was a clear need for new leadership of the board, we continue to have confidence in the other board members, who are experienced executives with a range of business expertise across the legal, financial, insurance, asset management and pensions sectors; there are two elected postmaster non-executive directors, too.

The Post Office faces unprecedented challenges. It needs to work at pace to deliver compensation to the thousands of postmasters who fell victim to a faulty IT system, as well as to continue the essential work to implement the necessary operational and cultural changes needed in the business. As such, strong and effective leadership of Post Office Ltd is a necessity.

Marion Fellows Portrait Marion Fellows
- View Speech - Hansard - -

I thank the Minister for his response. It is concerning that the Secretary of State’s move towards clarity and better governance at Post Office Ltd begins with the Government being on a different page from Post Office Ltd on whether Staunton was fired or left by mutual consent. Will the Minister clarify that? Is it possible that Mr Staunton is being made a scapegoat to take the heat away from this Government, and those who came before, the Government being the sole shareholder in Post Office Ltd?

Back in July, the Minister for Enterprise, Markets and Small Business said in a debate on POL’s management culture:

“Through the shareholder’s representative on the board, the Government oversee the Post Office’s corporate governance, strategy, performance and stewardship of its financial and other resources.”—[Official Report, 13 July 2023; Vol. 736, c. 180WH.]

That is not the same as the chairperson. Are the Government satisfied that the UK Government Investments board representative has adequately fulfilled his oversight role? Indeed, has Tom Cooper, who stood down in May, been replaced? That is not clear from Post Office Ltd’s website.

It is clear that the governance model simply has not worked. The arm’s length approach used by successive Governments has allowed scandal after scandal to fester. The post office network is in disarray. Financial redress to postmasters is far too slow and, in some cases, wholly inadequate. The remuneration package for sub-postmasters means that many are working for below the minimum wage, and services are continuously being stripped away. Does the Minister have confidence that the removal of Mr Staunton will speed up financial redress for victims and bring about change in the management culture of Post Office Ltd?

Back in July, Mr Staunton appeared in front of the Business and Trade Committee over the bonusgate scandal. In a debate at the same time, I asked the Minister if he had confidence in the current management of Post Office Ltd. I received no meaningful answer, so has it taken a TV drama for the Government to take action? How is that acceptable?

Kevin Hollinrake Portrait Kevin Hollinrake
- View Speech - Hansard - - - Excerpts

I thank the hon. Lady for her work; the all-party parliamentary group on post offices does a tremendous job. The phrase used in the statement was “mutual consent”, but it is fair to say that the Government exercised their right to remove the chairman; the hon. Lady can deduce from that what she will. This is not a case of allocating responsibility for the past problems of the Post Office; we are simply saying that we need new leadership going forward. There were specific circumstances around the chairman that meant that we felt that he was not the right person to lead the organisation of the board at this time.

The shareholder representative on UKGI, as the hon. Lady was right to say, is not the chair; it was Tom Cooper, but is now Lorna Gratton. Do I have confidence in her? Yes, I do. I meet her regularly and have a high degree of confidence in her.

Compensation is too slow—we accept that. A number of measures were introduced prior to the TV drama, as the hon. Lady puts it, including the fixed-sum award of £600,000 for overturned convictions. We have also introduced a fixed-sum award for the group litigation order to expedite compensation. That is something on which I am absolutely focused on a daily basis.

I accept what the hon. Lady says about the remuneration of sub-postmasters around the country. Part of that, of course, is about consumer habits—where we shop on the high street. We are keen to identify new sources of revenue, including through the banking framework, which is a potential lucrative opportunity, and parcel hubs.

On the issue of confidence in the individuals, let me say that, having been a board director myself for 30 years, you are only as good as your last game, so it is fair to say that, at this point in time, we did not feel that Henry Staunton was the right person to lead the board.

Post Office Horizon Scandal

Marion Fellows Excerpts
Wednesday 10th January 2024

(3 months, 3 weeks ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

Each Urgent Question requires a Government Minister to give a response on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Lindsay Hoyle Portrait Mr Speaker
- Hansard - - - Excerpts

I call the Scottish National party spokesperson.

Marion Fellows Portrait Marion Fellows (Motherwell and Wishaw) (SNP)
- View Speech - Hansard - -

I thank the right hon. Member for Haltemprice and Howden (Sir David Davis) for securing this very important urgent question. I am sorry that it was not a statement, because then I would have had prior sight of what the Minister was going to say.

When we stood here on Tuesday, I asked how long “some time” would be, and I am glad that things are progressing quickly, although with a note of caution—I totally understand the hesitation to introduce any kind of blanket Bill or whatever. We need to move things forward and keep up the momentum from the ITV series in the press, here and everywhere.

We also still need to listen to the victims. Only this morning, some of the postmasters said that we should all stop referring to compensation, but refer instead to financial redress. This is not compensation but money due to them, and we need to get it to them as quickly as possible. The hon. Member for Sutton and Cheam (Paul Scully) said that some people do not want to go anywhere near justice or the Post Office. We must encourage people to come forward. I am meeting constituents who were involved who have not officially approached me yet, and I am sure that many others across the House will be in exactly the same position.

Scottish law is different, as the Minister is well aware. The Cabinet Secretary for Justice made a statement yesterday, and said that the Scottish Government were looking at Fujitsu contracts, which is really important. I cannot speak for the Scottish Government, but I know there will be no hesitation in moving things forward. As chair of the all-party parliamentary group on post offices, I will write to the Crown Office and Procurator Fiscal Service in Scotland.

Kevin Hollinrake Portrait Kevin Hollinrake
- View Speech - Hansard - - - Excerpts

I thank the hon. Lady for her question and, once again, for her work in the all-party parliamentary group for post offices. I am sorry that I was not able to share a statement with her, and I appreciate her welcoming what we have done today.

I am very happy to term this “redress”; it is only about putting people back where they would have been, and trying to make good what has happened to them. I understand what she says about compensation, but this is there to compensate people financially for losses and impacts on their lives.

I could not agree more that, as well as delivering compensation more quickly and fairly, the No. 1 thing we would like to happen is for more people to come forward. A simplified process that does not require postmasters themselves to file an appeal will mean that this is done more quickly. The routes to compensation have been simplified, and we very much hope that people will come forward. That seems to be our experience right now. We will continue to engage with the devolved Administrations to ensure that they have everything they need, as they may want to adopt similar measures.