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Post Office Ltd: Management Culture
13 July 2023
Lead MP
Marion Fellows
Motherwell and Wishaw
SNP
Responding Minister
Kevin Hollinrake
Tags
Business & Trade
Word Count: 12709
Other Contributors: 6
At a Glance
Marion Fellows raised concerns about post office ltd: management culture in Westminster Hall. A government minister responded.
Key Requests to Government:
Marion Fellows called on the Government to provide assurances that scandals will cease, for a proper support system for sub-postmasters, and asked for a detailed plan regarding the post office network. She also requested information about when the Government was made aware of disclosure issues and what discussions have been had with Post Office Ltd.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Marion Fellows expressed deep concern about the management culture at Post Office Ltd, citing numerous scandals including the Horizon IT scandal and compensation schemes that are unfair to sub-postmasters. She highlighted issues such as inadequate compensation for sub-postmasters, secrecy, cover-ups, and incompetence in the management of Post Office Ltd. The lead MP also criticized the ongoing bonus payments to executives despite unresolved cultural issues and recent racial categorization practices by POL.
Darren Jones
Lab
Bristol North West
As part of an intervention, Darren Jones highlighted the statutory definition of 'false accounting' in relation to bonuses paid to executives despite unresolved cultural issues at Post Office Ltd.
Gavin Newlands
SNP
Paisley and Renfrewshire North
Mr Newlands praised his colleague's work on Post Office issues, particularly for sub-postmasters affected by the Horizon scandal. He highlighted ongoing management practices that harm sub-postmasters and called for accountability of those involved in the scandal.
Justin Madders
Lab
Ellesmere Port and Bromborough
Madders thanked Marion Fellows for securing the debate, highlighting concerns about the Post Office's management culture and lack of accountability. He cited examples of cover-ups and secrecy and raised questions about the board's actions during litigation. Madders also criticized executives receiving bonuses while victims waited for compensation. He asked if section 1112 of the Companies Act was breached and inquired about outreach branches' accessibility criteria.
Kevan Jones
Lab
Durham North
I was shocked that the inquiry was suspended again last week because the Post Office had failed to disclose documentation to it. Does that not show that the secrecy, incompetence or cover-up is continuing? Mr Jones criticised the Post Office's management culture, describing it as 'rotten to the core.' He highlighted the prosecution of sub-postmasters based on flawed evidence from the Horizon computer system and cited specific cases where individuals were sent to prison or bankrupted. He also pointed out that despite knowing in 2011 about the flaws in the system, the Post Office continued prosecuting individuals until 2014. Mr Jones expressed outrage over the compensation of former executives, including Nick Read's £455,000 bonus and Alisdair Cameron's £316,000 bonus. I would like to put on the record my thanks to the Minister and his predecessor, the hon. Member for Sutton and Cheam, for their approach to the Horizon compensation scheme scandal.
Lucy Allan
Con
Telford
Expressed concerns about the Post Office's management culture, citing the chief executive's lack of awareness regarding a serious non-disclosure issue that halted the public inquiry. Criticised the organisation for its corporate denial and secrecy, highlighting issues similar to those seen in other public sector scandals. Raised questions about the role of non-executive directors and shareholders in overseeing Post Office practices. Asked whether lawyers Herbert Smith Freehills should be sacked due to their involvement in the Post Office scandal. This debate is about the culture of the Post Office, and we have raised issues around the bonus arrangement, non-disclosure of documents, and racism and the use of categories. Will my hon. Friend move on to discuss the points raised by hon. Members?
Margaret Ferrier
SNP
Rutherglen and Hamilton West
Respect in the workplace should be a given, but it was not at Post Office Ltd. The management culture there led to devastating effects on postmasters and postmistresses accused of fraud due to flaws in the Horizon system. Between 2000 and 2013, over 700 people were prosecuted based on issues with Horizon. Former chief executives received bonuses despite the scandal, which is disgraceful.
Government Response
Kevin Hollinrake
Government Response
The Minister acknowledged the devastating impact of the Horizon scandal on postmasters and Post Office. He highlighted improvements in trust-building measures, including appointments of non-executive director postmasters to the board and new director roles for current postmasters. Compensation schemes have paid out over £20.4 million for wrongful convictions and more than £100 million through the Horizon shortfall scheme. The Government are supporting Post Office with funding to deliver fair compensation by an August 2024 deadline.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.