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pod Kelly Tolhurst MP
Department for Department for Business, Energy &
. Industrial Strategy
Business, Energy 1 Victoria Street
London
& Industrial Strategy SW1HOET
Tim Parker
Chair T
Post Office Limited E
20 Finsbury Dials w
London
EC2Y 9AQ
29 May 2019
Dear Tim
OFFICIAL SENSITIVE: COMMERCIAL
I appreciate you taking the time to meet with me on 15 May. It was helpful to discuss a breadth
of topics across Post Office Limited and I am pleased that good progress continues to be made
on the business’s journey towards commercial sustainability. As Minister for Postal Services, I
am committed to ensuring that the Post Office has a bright, long-term future.
When we met, we discussed the ongoing Alan Bates and Others v Post Office Limited litigation
that is being conducted in the High Court pursuant to a Group Litigation Order. During the
meeting I outlined my concerns about the implications of the trials for the business and its
reputation. I have since noted the Judge’s decision to refuse permission for Post Office Limited
to appeal the judgment from the common issues trial and the decision to issue a costs order.
I am aware that Post Office Limited has appointed a new legal team to represent the business
going forward. I would therefore like to ask that you write to me, drawing on the advice of your
lawyers, with an update on your legal strategy in the light of the advice you're receiving from the
new team.
Although the litigation is ongoing and may run for a considerable time, it is clear that it poses
significant long-term risks to Post Office Limited, financial as well as reputational, and it is
imperative that we are prepared for the potential outcomes and consequences, financial and
operational. I would be grateful, therefore, if you and your lawyers could advise me and my team
on the following topics:
- Current status of the litigation, particularly the Horizon trial and the appeal of the Common
Issues trial;
- What changes to your litigation strategy have been made following the appointment of
the new legal team;
- Scenarios as to how the litigation will play out and how it could be settled, including what
settlement windows could exist during the trial timetable;
- Your assessment of the potential cost of the litigation, including a range of possible
outcomes with rationale;
- Details of any other significant operational consequences arising from the litigation; and
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- Confirmation of Post Office’s ability to fund a settlement in the range referred to above
without further taxpayer support.
Work must be undertaken now to assess the risks presented by the litigation and to mitigate
them to whatever extent is possible. I for that reason ask that you undertake, and share with
me, a full and detailed assessment of the risks, costs and any other impacts that could result
from the litigation.
As agreed, I would also like to take you up on your offer to join a Board meeting and would be
grateful if you could be in touch with my office to find a suitable date.
Finally, given the recent difficulties that the litigation has presented, I would welcome your
assessment in your role as Chair of how effectively the Post Office Limited Board is operating
at present.
I would be grateful if you could share the information requested by 13 June 2019 and that we
can meet again shortly after to discuss these issues further.
Yours ever,
KELLY TOLHURST MP
Minister for Small Business, Consumers & Corporate Responsibility