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From: Whitehead Mike (ShEx)
Sent: 48 June 2012 08:57 Ate heed f
To: Batten Peter (ShEx) OL. ,
Subject: FW: Will Gibson meeting - feedback/ actions <> ey “ te ' vey ot
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Arbuthnot Meeting
PR position(...
Mike Whitehead
Department for Business, Innovation and Skills Shareholder Executive Royal Mail and Postal Services
1 Victoria Street
London SW1H OET
-----Original Message-----
From: Gibson Will (ShEx)
Sent: 15 June 2012 17:25
To: Whitehead Mike (ShEx)
Subject: Fw: Will Gibson meeting - feedback/ actions
Mike, to see.
ae Original Message -----
From: Alwen Lyons [mailto:
Sent: Friday, June 15, 2012
To: Gibson Will (ShEx)
Subject: FW: Will Gibson meeting - feedback/ actions .
will
' understand Paula promised you a copy of the Arbuthnot meeting communications plan, so please find
attached
Thanks
Alwen
Alwen Lyons
Company Secretary
Post Office Ltd .
148 Old Street, LONDON, EC1V 9HQ
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ROYAL MAIL GROUP LIMITED registered in England and Wales at 100 VICTORIA EMBANKMENT, LONDON
EC4Y OHQ with the registered company number 04138203
POST OFFICE LIMITED registered in England and Wales at 148 OLD STREET, LONDON EC1V 9HQ with the
registered company number 02154540
ERE E ESO EIS ISCO IUD ISI ASI aT IITA TIA IIT TT
’
Draft - In Strictest Confidence
James Arbuthnot Meeting - PR and Stakeholder
Plan - DRAFT
1. Background
Post Office Ltd’s media response lines to queries /
allegations about the Horizon system have been clear and
along the following lines in italics;
“The Post Office is fully confident that the Horizon
computer system in its branches, and all the accounting
processes around it, enable subpostmasters to account
accurately for the transactions and balances they record.
“The system has been operating for over ten years. In that
time thousands of subpostmasters will have used it in
Performing many millions of successful weekly and monthly
financial reconciliations between the cash they have in the
office and the transactions they have handled. The Horizon
system has been rigorously tested and the National
Federation of Subpostmasters, which represents
subpostmasters throughout the country, has expressed its
full confidence in the accuracy and robustness of the
system.
The Post Office has a duty to the tax payer to ensure that
individual branches Properly and fully account for the Post
Office funds in their possession.“
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2. General Background
The Horizon system has been operating for over ten years.
In that time over 20,000 different subpostmasters will have
used it in performing many millions of successful financial
reconciliations between the cash they have in the office
and the transactions they have handled.
For the tiny fraction who have not been able to reconcile
their cash and transactions, there are tried and tested
systems of checking, auditing and following up to determine
what has happened. For example, transactions might have
been mis-keyed (writing 100 instead of 10), a clerk might
have handed out too much change, a clerk may have forgotten
to take the money for the transaction, there may even have
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Draft - In Strictest Confidence
been rare instances of fraud by a customer. These checking
and auditing systems resolve virtually all discrepancies
satisfactorily. These discrepancies are caused by the same
kind of small day-to-day mistakes and human errors that any
large bank or retailer would experience.
In an extremely small number of cases after all these
checks have been undertaken, there remain significant
missing sums that can’t be accounted for. In such cases the
Post Office may take action to end the subpostmaster’s
contract as public money is entrusted to the Post Office
and it is vital that everything is fully accounted for. If
significant money is missing - either as a result of lack
of sufficient competence by the subpostmaster or their
staff or, in extreme and very rare cases, as a result of
dishonesty -it is not appropriate for that subpostmaster to
continue to operate the branch, and the Post Office will
seek to appoint someone new to take over.
There have been a limited number of cases where Court
Action has been taken over missing sums of public money.
In some of these cases, the subpostmaster has made
allegations against the Horizon system that records their
transactions. The Courts have consistently upheld the Post
Office position that the Horizon system is accurate and
reliable. When former subpostmasters have been convicted of
false accounting and/or theft, it is, of course, the Courts
that have convicted, not the Post Office. In some cases,
the subpostmaster pleaded guilty; in others the Post Office
had to provide robust evidence to support the Crown’s case.
A criminal court will only convict an individual if it
considers that the evidence has shown, beyond reasonable
doubt, that the individual is guilty of the offences with
which they have been charged.
The Post Office takes meticulous care to ensure that the
Horizon computer system in branches nationwide is fully
accurate. Tens of thousands of Post Office branches have
used the system to reach financial reconciliations without
difficulty.
e The Post Office is fully confident that the Horizon
computer system in its branches, and all the
accounting processes around it, are absolutely
accurate and reliable.
*® The Horizon system has been rigorously tested using
independently-assured, robust procedures. The Horizon
information security processes meet the relevant
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industry standards which apply to such organisations
as banks and building societies.
* Subpostmasters are given fully appropriate training,
typically including classroom training and further
time on site under close supervision and guidance from
a Post Office manager. Subpostmasters can also ring a
dedicated helpline for advice.
¢ The Horizon system has operated successfully for over
10 years across the Post Office network, which
currently stands at more than 11,500 branches.
¢ The National Federation of Subpostmasters, which
vigorously represents the views and interests of
subpostmasters around the entire country, has gone on
record on a number of occasions to express its full
confidence in the accuracy and robustness of the
Horizon system.
¢ The Horizon system provides detailed records of every
transaction, no matter how small or large, in any
individual Post Office branch. Separate records of all
key strokes in the system are stored in a tamper-proof
way.
The Post Office handles large sums of public money as well
as the money entrusted to it by the 20 million people who
visit our branches each week. The Post Office rightly makes
every effort and takes all reasonable steps to protect the
money in its care
3. Positioning given the James Arbuthnot meeting
These lines still stand as Post Office Ltd’s overall
position. There is no new evidence or information that
would make Post Office adapt this position.
What we have had is an approach from a number of MP’s who
seek to respond to individual constituents that are
expressing concern about the termination of their contract
as subpostmasters by Post Office Ltd. We have met with
these MP’s and demonstrated the way the Post Office’s
accounting systems and contractual relationship with
subpostmasters work. To take forward these meetings, and to
assist the MP’s in considering responses to those
individual constituents that have expressed concern, we
have arranged an independent firm to review a number of
existing cases and to then meet with the MP concerned.
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Draft - In Strictest Confidence
On that basis our general response lines can be;
4. Specific lines in response to the Arbuthnot meeting (See
draft Press Release too)
A number of MP’s have raised with Post Office Ltd a small
number of specific individual cases where ex-subpostmasters
in their constituencies have felt that their contracts to
run a Post Office were terminated inappropriately by Post
Office Ltd. These cases can involve a complex series of
issues where the subpostmaster believes they were not at
fault
In order to assist these MP’s in responding to these cases,
Post Office Ltd has commissioned an external reviewer to
perform an independent review of a number of individual
cases where there has been termination of the
subpostmasters contract. They will make conclusions on the
cases and feedback to the MP concerned. We would expect
these reviews to have been completed by Christmas..
In undertaking these reviews, Post Office Ltd is seeking to
provide clarity to the MP’s concerned. Post Office Ltd
remains fully confident about the robustness and integrity
of its systems and processes.
5. Media Approach
The above line should be supplemented by a series of
Questions and Answers (being established with the external
media team). Central amongst these Q’s and A’s is the
stance that there is no new information that has come to
light which would mean that Post Office Ltd would alter its
general stance on the robustness of its systems. This
activity is being done to look at the contract termination
processes of a number of specific cases and in doing so it
is intended to provide clarity on the situation to those
who have expressed concern.
Given this stance - in principle we believe our media
approach should be reactive.
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We need to strongly consider that going out proactively,
could make this a Major story. A proactive stance would
alert all media to the matter and we could expect key
national ‘Post Office watchers’ to pick this story up and
make it a Horizon story given their track records in
reporting on the Horizon system. It is not our intention to
make this a story - our line is that there is no story.
However, we have an in principle proposal with JA that the
Post Office could put its’ own release out with a quote
from him. He has also indicated that the Times has shown
interest.
We would like to understand more about the Times interest,
however it is likely that JA will want to respond in some
way to them. In this case our proposal is that JA provides
a jointly agreed statement (including a quote from Pauala
to the Times but does not issue anything wider.
We also have an option to show Support to the attending
MP’s by working with them to agree local, constituency
based press.
Our approach should be discussed and agreed at Monday’s
meeting.
A targeted approach is proposed to brief / inform other
stakeholders also.
6. Stakeholders Approach
BIS - BIS stance has been to note and accept Post office
Ltd’s confidence in its systems. Will Gibson already made
aware by Paula. We should provide our media lines to them
in advance of the meeting, so they can issue similar points
if asked. Action - Mike Granville
NFSP - They do not have concerns with the system and have
publicly said so. Following receipt of Arbuthhnot’s
statement, and subsequent finessing of our position, we
should brief George Thomson and supply our media lines to
them in advance of the meeting so they are in a position to
respond if asked. Action -— Kevin Gilliland
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JFSA - We should assume that Arbuthnot is keeping them
informed given that his interest started with a meeting
with them. As a self formed lobby group, direct contact
with them by Post Office is not advised — our approach here
is to deal with concerns from MP’s. We should monitor their
website for any comment and respond to any comment they
make to the press. Action - Alana Renner / Mike Granville
Shoosmiths solicitors - Legal should contact Shoosmiths and
make clear that the actions being taken with respect to
MP’s does not change in any way our legal stance towards
cases being currently handled, nor our approach should
Shoosmiths submit any future letters before claim. Contact
should be made on Monday afternoon straight after the
meeting. Action - Susan Crichton
cwu (generally) - Andy Furey has been supportive of the
system to date. We should brief him personally as to the
approach being taken on Monday. We should share with him
any press position we make. Action - Kevin Gilliland
CWU (subpostmaster section — Mark Barker) - it is not clear
the extent that individuals here have connections
/sympathies with the JFSA - therefore no direct contact
suggested —- contact should be through Andy Furey.
Consumer Focus - Subpostmasters concerns about Horizon have
not been an issue for Consumer Focus, there have been no
consumer complaints about the system. We do not seek to
involve them in this issue. Therefore we should brief on
Monday afternoon — as we are clear that press statements
may be going out - to explain the nature of the issue and
emphasise that this is a subpostmaster issue not a customer
one. Action - Mike Granville
Fujitsu - Lesley Sewell has already been in touch.
Following finalising our media position, we should brief
again and provide our response materials. It is not
expected that Fujitsu would make any comment.Action -
Lesley Sewell
MP’s in Arbuthnot Group - These will be picked up in the
meeting - we can offer in the meeting to meet any of them
individually as part of our meeting position. Any other
contact with these MP’s will be a matter for Arbuthnot.
Action - Simon Baker
Draft - In Strictest Confidence
MP’s with Horizon cases (i.e. outside the Arbuthnot Group)
~ It is likely that we will have MP’s outside the Arbuthnot
Group, but who have cases of subpostmasters making
allegations about Horizon, who will contact POL seeking the
same kinds of information/review with respect to their
cases. A standard response letter will be set up anda
system of arranging meetings with such MP’s that will
parallel that for those in the Arbuthnot Group. Action -
Simon Baker
MP’s generally - We do not advise any specific contact to
MP’s generally about this issue. Our approach is that our
reactive media lines should suffice. We have not changed
our position. Action - Mike Granville
Devolved Administration Representatives — As with MP’s
generally. If individual MSP’s, AM’s, ASM’s seek to claim
cases in their constituencies and demand the same processes
as Westminster MP’s, our approach should be that the
arrangements we have in place relate to cases raised by
Westminster MP’s consistent with Post Office matters being
reserved to Westminster on a UK level. Action -Mike
Granville ,
National/Local Media that have shown past interest - e.g.
BBC. Approach is dependent on final media position agreed
Monday afternoon. Our recommendation is not to go proactive
and so draw attention to this if not needed. However, the
compromise is detailed above. With a JA issuing a statement
to the Times and the option of working at a local press
level with the MP’s. No wires.. Q and A’s and statement
will be available for any follow on interest. We should not
offer interviews or talk about any individual cases. Action
~ Alana Renner/Ronan Kelleher
Trade Press - Computer Weekly, Convenience Store ete. Take
reactive stance. Action - Alana Renner/Ronan Kelleher
Multiple Partners (One Stop, WH Smiths, McColls, Co-op
ete). following Monday’s meeting, if relevant, we should
brief the largest multiples to explain the specific nature
of the approach being taken. This should be done Monday
afternoon once it is clear any media positioning. Action -
Kevin Gilliland
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Association of Convenience Stores. We should not
proactively brief. However, if there is significant media
interest being shown, we should contact them to inform them
of our position and press statement. Action Kevin Gilliland
/ Mike Granville
Clients with accounting arrangement with POL. If it is
clear there will be significant media, account managers
should brief Clients with emphasis that there is not change
to the integrity of accounting systems. Action - Martin
Moran /Nick Kennett (briefed by Simon Baker)
Rural Shops Alliance. We should not proactively brief.
However, if there is significant media interest being
shown, we should contact them to inform them of our
position and press statement.Action - Mike Granville
Fol enquiries position. We should expect FoI enquiries
with respect to this process and to any individual cases
that are being looked at. The Fol team should be briefed
and normal processes and timescales will be followed.
Action - Susan Crichton
Current legal cases underway. Legal should contact parties
to any cases as appropriate to make clear that this doesn’t
impact at all on cases that may be underway.
Action - Susan Crichton
Current termination cases underway. Network Services Team
should be briefed in advance and advised that this doesn’t
impact in any way on cases that are currently underway.
Action - Angela van den Bogerd
Internal Comms position. It is not intended to do any
widespread internal communications unless there is major
media coverage about the issue. A simple line should be
prepared if needed which will emphasise our faith in the
system and that this is about responding to the concerns of
MP’s in specific cases. Action - Alana Renner/Richard
Weaver
Subpostmaster questions. Responsive Q’s and A’s should be
prepared to cover questions that come in from
subpostmasters/ staff via internal channels - and a brief
will need to be given to field managers to make sure that
they can respond consistently to questions from
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subpostmasters in the field. Action — Alana Renner /Richard
Weaver
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