Carmichael calls for independent management of Horizon scandal compensation

Orkney and Shetland MP, Alistair Carmichael, has today argued for compensation for the Horizon scandal to be handled by an independent commissioner, rather than by the Post Office. Mr Carmichael made the call during an Urgent Question in Parliament, following further revelations and competing claims about the management of the Post Office during select committee questioning yesterday, in which former Chairman of the Post Office Henry Staunton revealed that the current Chief Executive Nick Read was under internal investigation.

Some 700 sub-postmasters were prosecuted by the Post Office for theft and false accounting between 1999 and 2015 after the Horizon IT system, developed by Fujitsu, made it look like there were shortfalls at branch accounts. It led to what has been described as the most widespread miscarriage of justice in British legal history. Thousands more pumped their own money into the Post Office shops they managed to cover discrepancies caused by Horizon.

Speaking in the House, Mr Carmichael said:

“Surely what we saw yesterday was a glimpse of senior management in the Post Office who are now completely dysfunctional. As such, it is difficult to see how anyone can have confidence in their administration of the various compensation schemes.

“Would it not be a sensible first step to restore confidence in that most important national institution—the Post Office—to take all role for them out of the administration of the compensation schemes and appoint an independent commissioner? Nothing starts to get better for the Post Office until the schemes are successfully delivered and wound up.”

Parliamentary Under-Secretary of State for Enterprise, Markets and Small Business, Kevin Hollinrake MP said:

“I think what we actually heard and saw was a dysfunctional former chair of the Post Office; that is what we saw. Interestingly, to the right hon. Gentleman’s point about compensation schemes, the former chair said at one point during his evidence that he had no concerns about the speed of delivery of the HSS—which was extraordinary, because I have many concerns about it.

“I hear loud and clear calls from across the House about the role that the Post Office is playing in compensation schemes. These are sensitive matters, because people in the Post Office are employed to manage and administer the compensation schemes.

“I hear the point made by the right hon. Member loud and clear. We are looking at it, but I reassure him that all three schemes have independence in them. Both latter people are retired High Court judges, which should give claimants and the right hon. Gentleman, I hope, some confidence that the schemes will operate properly.”

Reacting after the exchange, Mr Carmichael said:

“Confidence in the Post Office, and its ability to handle the Horizon repayment scheme fairly, has been badly damaged by recent events. Rebuilding that confidence has to start by speeding up the payment and restitution for postmasters. I suspect that many of those affected will feel a great deal more confident if decisions are driven by an independent body rather than by the organisation that created the mess in the first place.

“The minister knows this issue well and I am certain he grasps the importance of delivering for the victims of Horizon as quickly as possible. I will continue to press home the arguments for a swift and fair resolution for postmasters in the weeks to come.”