BEIS0000830
BEIS0000830
Message
From: Beal, Eleanor (Services Directorate);
Sent: 04/06/2019 16:06:03
To: Creswell, Carl (Business Sectors - Services Directorat Lambert, Gavin (Advanced
Manufacturing and Services) }
cc: Watson, Craig (Professional Post Directorate)
Subject: RE: OFFSEN: Industry Meeting
Hi both,
Alex’s office were struggling to find a time for this discussion to take place tomorrow, so we were called up to see Alex
at short notice today. Readout below; Craig and I are of course happy to discuss with you both tomorrow.
Overall, Alex agreed that developing advice for SoS outlining the options that we think would meet Ministers’ objectives
is the right next step, in anticipation of another meeting on this later this week/early next. Craig is kicking this off. Alex
confirmed we should lead and consult UKGI and that we will need views from others (particularly Legal).
POL management
e Alex noted clear Ministerial interest in refreshing POL management and advised that we:
© Be ready to give our assessment of the candidates for CEO. We should consult UKGI;
co Inform our advice to Ministers with an org chart showing changes to POL leadership 3 years ago VS now,
to indicate that there has been quite a bit of recent change. One for UKGI to produce.
Litigation
e Alex advised that we frame SoS’s steer as “wanting to be a responsible shareholder acting in the public interest”.
He emphasised the need to influence POL’s strategy from this position (linking to potential impact on the long-
term business), but to avoid taking operational responsibility or becoming shadow directors. Frame as “inviting
the Board to think about new solutions”;
¢ Noted that if the appeal is granted we should wait for that to be heard;
® On SoS’s steer that BEIS should take the side of the postmasters, we need to carefully advise of the complexity
here, including that some claimants have acted criminally.
Information sharing
e Alex encouraged us to resolve the issues around information sharing [which we have proposed to do through
the Shareholder Framework Document] ASAP, as this is a relatively simple and solveable ask. We will need to get
UKGI to accelerate and prioritise work on the Framework doc and perhaps press POL — we can pick up with Tom
Cc.
CEO recruitment
e Alex agreed it would be best to influence the CST’s decision ASAP. He advised that Jacqui (PPS) call her HMT
counterpart to press the angle that SoS is supportive of an increased package and sees it as crucial to securing
the right candidate. Next step would be a SpAd to SpAd call. Craig has actioned with Jacqui.
Daily Mail campaign
e Alex agreed no immediate action on us. We are working with the comms team to pick up actions from Jacob on
this.
Best,
Eleanor
BEIS0000830
BEIS0000830
we Eleanor Beal
Department for
Business, Energy
: 1 Victoria Street, London SW1H OET
& Industrial Strategy www.gov.uk/beis I https://twitter.com/beisgovuk
From: Creswell, Carl (Better Regulation Executive)! __
Sent: 04 June 2019 15:30
To: Lambert, Gavin (Advanced Manufacturing and Service:
Manufacturing and Services}
Cc: Beal, Eleanor (Advanced Manufacturing and Services)!
Subject: RE: OFFSEN: Industry Meeting
Watson, Craig (Advanced
Many thanks from me, too. I’m sorry I wasn’t available to join the various discussions today.
It'd be worth seeing if Patrick K could come along to the rescheduled meeting with Alex, I think, since he was
helpful during my recent call with Kelly...
Carl
we Carl Creswell
Director, Professional Business Services, Retail and Post
Department for ;
Business, Energy L
Orchard 2, 1 Victoria Street, London SW1H OET
& Industrial Strat 9) www.gov.uk/beis I https://twitter.com/beisgovuk
From: Lambert, Gavin (Advanced Manufacturing and Services)
Sent: 04 June 2019 15:15 -
To: Watson, Craig (Advanced Manufa:
Regulation Executive); GRO
Subject: Re: OFFSEN: Industry Meeting
Thanks Craig
Just discussed with Alex and we agreed to do the catch up him in the morning when Carl is back in.
BEIS0000830
BEIS0000830
From: "Watson, Craig (Advanced Manufacturing and Services:
Date: Tuesday, 4 June 2019 at 15:07
To: "Creswell, Carl (Better Regulation Executive)"
Manufacturing and Services)"!
Cc: "Beal, Eleanor (Advanced M.
Subject: OFFSEN: Industry Meeting
GRO
“Lambert, Gavin (Advanced
Carl, Gavin,
A quick readout from the industry meeting on Post Office, which went on the agenda last minute. I attended with Tom
Cooper, and Alex Chisholm was also there.
There is a 15min follow up meeting with Alex at 3:45 to discuss actions which you have been invited to Gavin — are you
attending?
Litigation
e SoS (backed up by Kelly) has serious concerns about the direction of travel of the litigation and POLs handling of
it. Referenced the first judgement and particularly the recusal application as evidence of poor judgment of the
board. AC pointed out POL had received advice from senior QCs/previous chair of supreme court on the recusal
application, Tom talked through the steps POL have taken since including changing legal team
e SoS gave a clear steer that he wanted the department to be on the side of postmasters (he said it felt like there
were ‘shades of Windrush’ re: the potential for a number of injustices to come out) and wants a strategy on how
we can take this forward. He wants to resolve this quickly given the damage it is doing to the reputation of POL.
AC cautioned against any public statements that sets SoS (as sole shareholder) against POL and what that might
mean in any settlement discussions.
e Kelly reiterated her concerns about the effectiveness of the Board, and about the information shared with her.
She pointed to the fact that POL hadn’t done any detailed work on the potential liabilities from the case as a
concern.
e@ The CEO recruitment also came up and SoS is clear the issue over pay should be resolved with the CST ASAP. He
mentioned taking it to the PM if necessary so Tom C is exploring what the best way to use SoS to influence this
will be.
Actions SoS has asked for:
e ABEIS strategy to:
- ensure the litigation is settled quickly and put BEIS on the side of Postmasters
- resolve the CEO pay issue so we can recruit the best candidate
- consider how we deal with the ongoing management of POL given the concerns ministers have on Board
performance
Eleanor and I had a debrief with Tom after and discussed some options for the litigation strategy SoS wants,
many of which have pitfalls or legal considerations. I’ve agreed to write a first draft of what we discussed to
share with legal etc, but will hold off until we have spoken to Alex.
Daily Mail campaign
¢ brief discussion on the Mail campaign on Post Offices, Jacob spoke to the DM yesterday and agreed they want to
resolve this soon.
BEIS0000830
BEIS0000830
e Agreement that we have something to say against their 5 campaign asks (banking fees, commitment to network
size) etc, Jacob is pulling a package together with the aim to get it to SoS tomorrow afternoon. We’re checking in
with Spads office to see if he needs anything further from us on that, we had a meeting in for 2pm today which
he cancelled so that suggests not;
Let me know if you have any questions on the above, SoS talked about a follow up meeting this week or next so it looks
like he wants to move at pace on this.
Regards,
Craig
ae Craig Watson — Deputy Director
Professional Business Services, Retail and Post Directorate
Department for Tel! GRO _;I Mobil :
Business, Energy
& Industrial Strategy Floor 4 Victoria 3, 1 Victoria Street, London, SW1H OET
www.gov.uk/beis I https://twitter.com/beisgovuk
sora tage
Mental Health First Aider
MUHFA Details on BEIS Intranet