UKGI00001055
UKGI00001055
OFFICIAL SENSITIVE
To: Secretary of State
From: Laura Thompson!”
Date: 19 March 2015
Subject: Post Office mediation: reply to BIS Select Committee
Purpose: Adrian Bailey MP has written to you following the BIS Select
Committee’s short inquiry into the Post Office mediation scheme. The letter sets
out some points for further clarification, and some recommendations for
Government.
Recommendation: That you agree and sign the attached response to the
Committee.
Timing: We should reply to the Committee early next week, before Parliament
rises.
Summary
1. The BIS Select Committee held a one-off evidence session on the Post Office
mediation scheme on Tuesday 3 February 2015. The Committee heard
evidence from:
= Post Office
« Second Sight, the independent forensic accountants
= National Federation of Subpostmasters (NFSP), the representative body
for subpostmasters
= Justice for Subpostmasters Alliance (JFSA), a small group representing
mostly former subpostmasters with cases in the scheme
= Communication Workers Union
2. Adrian Bailey wrote to you on Tuesday (17 March) summarising the
Committee’s findings, in lieu of a full report on the matter. The Committee
raises some points where it would welcome further clarification, and sets out
some recommendations for Government. You should reply to the Committee
responding to the points they raise.
3. Overall, the Committee’s letter and recommendations are measured, although
they do demonstrate that in some areas it would be helpful to provide additional
information to aid their understanding.
4. In particular, we recommend that your response emphasises that the number of
cases in the scheme is small in the context of the number of subpostmasters
successfully using the Horizon system every day. There are fewer than 150
cases in the scheme, compared to the c.500,000 users who have worked with
Horizon since it was introduced. So this issue, while important, cannot be said
UKGI00001055
UKGI00001055
OFFICIAL SENSITIVE
to have damaged Post Office’s relationship with subpostmasters across the
board. In particular, the response we have prepared emphasises the role of the
NFSP as the body representing the majority (around 6,000) of subpostmasters.
5. It is also important to reiterate that the scheme is independent of Government.
Subpostmasters are not employees of Post Office, they are independent
businesspeople who choose to enter into a contract with Post Office as part of
their business. Where there are disputes, they are disputes between two
businesses and it is not appropriate for the Government to intervene. As such,
we strongly recommend that we do not accept the Committee’s suggestions
which would imply greater Government oversight of the scheme, but provide
some alternative suggestions which should address the Committee’s concerns.
6. The Committee also asks the Government to update the House in the future on
the progress of the scheme, including where cases have been satisfactorily
resolved. Given that the scheme is independent and mediation is confidential,
this is not something that Government can action; however, the Centre for
Effective Dispute Resolution (CEDR) which oversees the mediation process
has agreed to provide regular updates on progress, which we suggest should
be shared with interested parties as appropriate.
Annexes:
A: Draft letter from Secretary of State to Adrian Bailey
B: Letter from Adrian Bailey to Secretary of State
Copied to: Ministers’ offices, SpAds, Permanent Secretary, Mark Russell,
Anthony Odgers, ShEx POL team, Parly Unit, Hannah Franklin-Wallis, Ashley
Rogers
Advice received from:
Finance SpAds Press Legal Analysts
No No No No No
Have devolution issues / impacts been considered?
Devolution Issues Equality Analysis [__ ‘impact on Families’
N/A N/A I N/A