Infected Blood far from the last scandal if lessons not learned – Carmichael

Orkney and Shetland MP, Alistair Carmichael, has today in Parliament warned that ministers must learn the lessons of the “Infected Blood” scandal around the culture of government institutions. Mr Carmichael highlighted parallels with the FCA’s inaction over the Midas fraud in Scotland, after government minister John Glen set out details of the infected blood compensation scheme in the House of Commons.

During the infected blood scandal, 30,000 people were infected with hepatitis and HIV while receiving NHS treatment between the 1970s and 1990s. 3,000 have since died. On Monday, a public inquiry said victims were repeatedly failed, with evidence of a cover-up.

The government has reportedly earmarked £10bn for a compensation scheme, and expects the first final payments to be made before the end of 2024. The Infected Blood Compensation Authority has been set up to administer the compensation scheme.

Those eligible for interim payments are: living infected beneficiaries, people registered with existing support schemes, those who register with the support scheme before the final compensation scheme becomes operational, and the estates of those who pass away between now and payments being made. 

Speaking in the House, Mr Carmichael said:

“Can we accept that institutional defensiveness has not gone away, and will only go away when we in this House act to make it go away? For the past few years I’ve been working with constituents who were victims of a Ponzi scheme. They lost millions of pounds. They were failed repeatedly by first the FSA and later the FCA. They have been left out of pocket to the tune of almost £2m in legal fees, in which the FCA has no apparent interest. Would he meet with me and other honourable members who have affected constituents, and some of the victims themselves, to see what can be done to deliver for them the good intentions that he has expressed today?”

Responding for the government, Cabinet Office minister John Glen MP said:

“I’m very sorry to hear about his constituents. If there is a matter for the FCA I know that the current Economic Secretary to the Treasury is best placed to address that.”

Reacting after the exchange, Mr Carmichael said:

“The scandals we are responding to today took years and decades to reach this point. The scandals of years to come are in the making right now – and will continue if we do not shake up the behaviour of our public institutions. 

“The cases I have supported in the isles in relation to the Infected Blood scandal have been some of the most infuriating, because those affected had so little ability to protect themselves from what was done to them. Whether it is Infected Blood, Horizon or the Midas fraud, the common thread is public institutions forgetting that their obligations to the public come before protecting themselves. The only way we are going to break that long term cycle and protect victims of fraud or malfeasance is through a serious re-examination of the culture in public bodies.”