POL00022167 - Second Sight Mediation Briefing Report. Draft (V2) 30 July 2014: Reactive comments regarding subpostmaster contract
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LEGALLY PRIVILEGED AND CONFIDENTIAL.
SECOND SIGHT MEDIATION BRIEFING REPORT DRAFT V2 30" July 2014: REACTIVE COMMENTS os CONTRACT.
1, Executive Summary I
a ‘
The in-scope element of the Second Sight report is fundamentally flawed for a number o} J Ne ns, détail M.: at #2 below, and expressed
in more detail in the table at #4. r \ N \ or
2. Key Points. a %
2.1 There is no evidence that Second Sight (2S) have considered that the Ul. _ meat ~ by the contract booklet, but a number of other
(online) manuals, booklets, and operational instructions issued by POk, fri nm ie, whi
weaknesses of their narrative, as a good quality and unbiased rep; ould
2.2 There is no evidence that 2S have contextualised risk with reward,
parties to the agreement on consideration of signing. Eq <c thee is
aN our’
are supportive. This exposes the limitations and
tal olistic view of the subpostmasters contract.
is he acai and fair assessment would be undertaken by both
vidence of any benchmarking with other companies that operate their
ay Ssition is an attractive one as evidenced by the number of agents
estate on a ‘contract for services’ basis, nor any — T
nationwide.
2.3 The report expresses a series of subjective orn a. en t, many of which are unqualified and un-evidenced. The evidential points
2S have raised are incredibly selective and wt el re Si evidence of any attempt to present counter points, or to refer to drafting not
selected by agents, even though 2S would nh “a
2.4 The fact that the report is silent on the Hey SP is\ery notable, and would indicate that 2S had considered that it would have been entirely
unhelpful to several of their argu jt défiberately.
3. Scope: To examine and comment on t iy mments regarding the subpostmaster contract. I have not evaluated any other drafting.
4. Tabulated comments for in ri e oa joning.
:
Ref. _I Items of concern ‘ Interhal comment External positioning
2.3 The reports indicates a) This reférenice is opaque, as the report POL believe that their contracts are fair, and make clear the risks and
and ‘transfer of financial andy does fot say ‘transferred from where, potential rewards to its 11,500 agents, and would expect that any (new)
2.6 other risk’ and in the , or what’. The wording itself is agent would have taken independent legal and financial advice when
context of new agents. pejorative, as it implies a POL agenda in I doing due diligence as part of their application.
‘transferring risk.’ The risk is not
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transferred, it is accepted by both
parties.
2.3 The report speculates This is just supposition as it is not Whilst POL should not¢rovide legal or financial advice as a proxy,
that agents may not have I evidenced that there is an underlying before, during and after appointment process POL are equipped and
understood the risks. problem here. content to discu agent’S,contract with the agent, and have a
dedicated team atin’ .
24 The report mentions It is trite but these agents are a self- POL woul, ourageit’s agents to read all of the contract before
elements of the contract I selecting group, and it is not a sound signin, ind ake it legal and financial advice, before
that agents have referred I approach to only look at discrete parts decid ‘ it is fox, thet, in the context of the rewards available for
to. of the contracts when evaluating any pérforming the contrast. We believe that the entry level, and the ratio
dispute;the contract should be looked of ri k, ‘O at a good one in the market place, and that is
at in its entirety, and aspects of law ( I evi nced by th t that we have an estate of c.11,500 branches run
should be considered in doing thatg? Ney jOtivated agents.
2.4 The report mentions For a report to be balanced and a 4 Sattig comment as immediately above.
elements of the contract I would have expected it to make not » \
that agents have referred I the omissions of agents ell iy 4
to. they had stated. This rep My, ir
important aspects of the co ty
example sectiot boar hat
crystal clear thi ents are
private use @§pOn unds?
2.5 The report states that the I This is ifie tement and is POL strongly believes that its contracts represent a fair ratio of risk to
contract is biased in not evide isreg: Mig rewerd reward, and that it’s terms are fair on both parties. The attractiveness of
favour of POL, and can mitigating risk, I our proposition is evidenced by the fact that POL are able to attract
operate to the detriment 6 attempt to suitably motivated independent business people in a competitive labour
of the agent. tward ratio. It also market, that contribute to the success of our brand. POL strongly
go s to recognise that believes that it would be misleading to view its contracts with its agents
( overned by (statutory) through the very small and narrow prism of dispute resolution.
\ rms regulations, and are of
y coursjsubject to challenge in law.
25 The reports states that elreport does not say whether such POLs agents are self-employed business people who would be used to
there is no sighted
evidence that POL advises
evidence had been requested.
Currently, POL go to great lengths in its
agreeing contracts with their suppliers and employees. Despite this, POL
does clearly indicate to potential new agents the importance of taking
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it’s agents to seek
independent legal advice.
Engaging Agents materials to advise
potential new agents to take advice.
independent legal and financial advice.
2.5 The report states that This is correct. POL could not manage POL could not manag: estate efficiently on the basis of having
POL do not vary the its estate efficiently on the basis of bespoke terms for its agi ;, and if it chose to do so it could provide an
terms of their standard having bespoke terms for its agents, unfair competitiv@ lvantag@to one agent at the expense of another.
contract. and if it chose to do so it could provide Kn \ gv
an unfair competitive advantage to one iN iy
agent at the expense of another. > ty ( Mp
2.6 The report indicates that I The contracts make clear the POLy deciceg m1 who are happy to discuss with its agents
agents are unable to obligations and risks, and the onus is on ways of mitigating ri in eir Post Office business.
manage risk if they do not I the agent to seek advice if they do not \ Ny
understand it. understand the obligations in their “I No ." %
contract. & hy Wa ty
2.6 The report suggests that I The report completely ignores tect POL) loes take’great care to discuss proposed changes with the
agents are hostage to that agents can serve notice on thei ty orgal ion that represents subpostmasters, NFSP. We do recognise
POL decision making. contract, and that POL c i that e of our agents will wish to serve notice on their contracts and
NFSP on changes affectin gents, % a other interests, and when they do that we always seek to
including economic change: 4 int a suitable agent in that community.
2.7 The report suggests that I This is untrue. ‘Ss can isp ; POL has dispute resolution systems in place that mean that disputed
un-evidenced losses are losses, and the: pare freq sc i, losses can be held in suspense whilst POL is providing further evidence
recovered from agents. suspense whilst PObis(providi to support the loss recovery.
evidence to st rt loss recovery.
The re ~ mefition of the
fi hthat a he eports back
rplusesin its favour.
2.8 I The report states that igther a 22h defating point to make as I POL would encourage it’s agents to read all of their contract with us,
agents are unaware i I \dicates that the agent has not read and seek independent advise.
section 19. sec 19.
2.9 Makes the point \ This is beeatse the issue is a private Should an incident escalate so that the Police are involved, and the
regarding legal ty mattefat this point, the report does not I agent is interviewed formally, the agent would be allowed to have legal
representation. \y it is considered to be unfair. representation.
2.10 I Makes a number of This is just unsubstantiated, self-serving I Contract booklets are not signed by agents, however they do sign to
points regarding sight of
hearsay evidence. Contract booklets
acknowledge receipt of the contract booklet on transfer. Agents are
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the contract
are not signed by agents, however they
do sign to acknowledge receipt of the
contract on transfer. Agents are able to
read the contract as part of due
diligence, and seek advice, and request
a copy of their contract from HRSC
should they misplace it.
able to read the contract as part of due diligence, and seek advice, and
request a copy of their contract from HRSC should they misplace it. We
are always concerned te, find that documents have been misplaced and
have taken steps to imp! our document retention systems so that
an el
the impact pf an’ 's is mitigated.
a WW
Paul Inwood
Agents Contracts and Policy Development Manager
4" August 2014.