Post Office and Horizon Software

Debate between Sharon Hodgson and Gill Furniss

Thursday 5th March 2020 Westminster Hall

[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

It is a pleasure to serve under your chairpersonship, Mr McCabe. I thank the hon. Member for Telford (Lucy Allan) for securing this important debate.

This extremely serious matter has raised worrying questions about the management and governance structures of Post Office Ltd and the way in which the Government oversee it as a public body. I pay tribute to the many sub-postmasters who have endured the harsh realities of this national scandal. Among them is Alan Bates, who has spearheaded the litigation that ultimately saw sub-postmasters get some of the vindication they deserved. Like Mr Bates, I know that the successful litigation was the first step towards achieving justice. I also pay tribute to journalist Nick Wallis, who has followed the case from the beginning and has been a passionate champion for the sub-postmasters’ cause over many years.

This debate relates specifically to the review of criminal cases, so I am disappointed that the Ministry of Justice is not responding to it. Will the Minister explain why it is a BEIS representative who is responding, when the topic of the debate was intended to fall under the brief of the Ministry of Justice?

The wrongful conviction of sub-postmasters has had an impact on the lives of far too many individuals and their families. People have lost their livelihoods, had their businesses stolen from them and, in many cases, been ostracised from their communities. For those affected, that has been a living nightmare.

One young woman began her career as a sub-postmaster at the age of 18, but after prosecution and conviction she has faced unemployment and financial ruin at a time when her adult life and independence should have begun. Another sub-postmaster whose life was turned upside down was bankrupted by legal fees and shunned by the community he had so diligently served. His neighbours would not speak to him, and his daughter was spat at on the bus to school. In one of the most tragic examples, one sub-postmaster took their own life, such was the shame, anxiety and stress that the Post Office’s heavy-handed pursuit of them brought on. Sub-postmasters who were implicated in Horizon’s IT failures have been wrongly labelled as criminals, had their lives turned upside down and, in some cases, faced decades of debt and social disgrace.

On 11 December, while we were all busy with our election campaigns, the sub-postmasters’ fight for justice took a huge step forward. The Post Office agreed to pay a £58 million settlement to the 557 sub-postmasters who brought court action against it. Mr Justice Fraser noted in his ruling that the Post Office felt entitled to treat sub-postmasters

“in capricious or arbitrary ways which would not be unfamiliar to a mid-Victorian factory-owner.”

That falls far below the standards we would expect from one of Britain’s most recognisable and trusted institutions. Mr Justice Fraser also raised concerns about the structure of accountability within the Post Office, stating that it appeared

“to conduct itself as though it is answerable only to itself.”

That was evident in the way in which the Post Office handled its litigation; it was noted that the Post Office pursued the trial with the resources and effort of a blue-chip tech company.

It is worth remembering that litigation was brought to address the errors of a Government-owned company, which was ultimately found at fault for the vicious pursuit and prosecution of hundreds of sub-postmasters. The Post Office is a Government-owned company. A civil servant sits on the board and its only shareholder is the Secretary of State for Business, Energy and Industrial Strategy, so more should have been done to address the scandal before it was allowed to fester to this extent.

In the light of the number of wrongful convictions, a group expungement of the criminal records of those convicted seems the most suitable way forward. Unfortunately, the Post Office has resisted that idea and would prefer each sub-postmaster to bring their own legal action to overturn their conviction. That is completely outrageous. People who have lived for many years through the scandal and lost everything, including their savings and reputations, are now being asked to go back to court to give their own evidence, despite Mr Justice Fraser’s finding that the Horizon computer system by Fujitsu was at fault. The Post Office was alerted to those faults many years ago, so it should not have any illusions about the system’s effectiveness.

It is striking that the Post Office seems to have learned nothing from the unnecessary prosecutions of 557 hard-working sub-postmasters or from the huge amount of anger expressed by judges, parliamentarians and the public. Instead, it forges ahead as though it has done nothing wrong. I urge the Minister to work with colleagues in the Ministry of Justice to move towards overturning, quickly and fairly, the convictions of the sub-postmasters affected by Horizon.

Serious questions need to be answered about the relationship between the company and the Government. The Government have been content to parrot the Post Office’s line throughout the process, claiming that the December settlement was the end of the matter. Nothing could be further from the truth for the people who are still fighting for justice.

[Mrs Hodgson]

My hon. Friend, who chairs the all-party parliamentary group on post offices and has long been an advocate on this issue, is making a powerful case. Does she agree that, although the scandal is outrageous and should never have happened, the Government and Select Committee investigations need to follow the money? People lost their livelihoods to pay that money back, so where did it go? Where was the shortfall? Somewhere, there are bulks of money that obviously went to the Post Office, which should use it to pay the legal fees as part of the compensation.

[Gill Furniss]

My hon. Friend makes a key point. People have paid money, so where is it? That must be at the heart of any investigation.

Unfortunately, fundamental corporate change within the Post Office seems a long way off, given the close relationship between both current and previous Post Office officials and the Government. The Post Office is being allowed to mark its own homework, meaning that a culture of denial is likely to persist. Could the Minister explain why Paula Vennells, the former chief executive of the Post Office, whom Judge Fraser noted was practising

“the 21st-century equivalent of maintaining the earth is flat”,

serves in the Cabinet Office?

The management and governance of the Post Office were severely criticised by the judges, so I raised the issue with the previous Minister. Will the new Minister call for a full review of the governance and management and of the relationship between the two? Furthermore, will he look closely at the way in which the National Federation of Sub-Postmasters, which is fully paid and resourced by the Post Office, has acted throughout the affair?

It is important that the taxpayer is not left to foot the bill for mistakes made by management. In December 2019, BEIS paid the Post Office £50 million as a network subsidy payment to cover the operating costs for the network. Will the Minister assure us that not a penny of that public money will be used to fund the December 2019 settlement or any future litigation?

The consistent failings of the Post Office, spanning more than two decades, have caused immeasurable damage to hundreds of lives. Only now is the full picture beginning to emerge. I welcome the commitment from the Prime Minister for a full public inquiry into the issue. I have already written to ask him to confirm that that is the case, and to give me timescales. Unsurprisingly, I have not received a letter back to that effect.

The convictions we have discussed today, however, must be dealt with as a matter of urgency. The Post Office and the Government must wake up and use every influence to ensure that the seriousness of the situation is realised. I hope this debate is one step in helping to move this process along. We must secure an independent, judge-led inquiry to quash the convictions, to pay up what the convicted have lost and, most of all, to clear the names of those hard-working decent people.