Gareth Thomas MP: speeches

Speeches

• 13 Nov 2024 · Export and Investment Guarantees · Hansard source

  More

  I beg to move, That the draft Export and Investment Guarantees (Limit on Exports and Insurance Commitments) Order 2024, which was laid before this House on 14 October, be approved.

• 13 Nov 2024 · Export and Investment Guarantees · Hansard source

  More

  I pay tribute to Crawford Falconer for his work for the Department and the country. He has already fed into the work that my right hon. Friend the Minister for Trade Policy and Economic Security is leading on the trade White Paper. Others in the Department are actively leading negotiations with a number of countries in support of our free trade negotiations and our ambitions for new free and fair trade agreements. The hon. Lady asked me whether there is a need for further legislative reform to UK Export Finance. The Secretary of State has instructed UKEF officials to explore how we can increase the organisation’s overall financial capacity. That work is under way. We are committed to ensuring that UKEF can support British exporters now and into the future, but these statutory instruments are key in the short and medium term to helping it to continue to do its job. The hon. Member for Wokingham (Clive Jones) gives me the opportunity to plug International Trade Week, which is taking place this week. I am glad to see that he at least has taken the advice that I wrote out for every Member of the House, encouraging them to reach out to exporters in their constituency, to support what they are doing already and to make them aware of further help that the UK Government could give them to win new export orders overseas. One message that we have sought to get across during International Trade Week is that we are absolutely committed to a reset in our trade relationship with the European Union. There is no doubt that the poor-quality trade deal with Europe that the previous Government negotiated has held back many British businesses from winning export orders in Europe. We need to reset the trade relationship with Europe in very practical terms. We committed, for example, to negotiating a sanitary and phytosanitary agreement, and to exploring more opportunities for mutual recognition of professional qualifications. We see next year’s trade and co-operation agreement review as another opportunity to look at what we can do to reduce the difficulties that businesses face in trading with our nearest neighbours. The Conservatives talked down the opportunities for British businesses to win export orders in our nearest overseas markets. That was a huge mistake; businesses have told us so. We are actively looking at what we can do to change that. If the hon. Member for Wokingham gives any message to the representatives of the company that he is visiting tomorrow, let it be this: please encourage them to look again at Europe. We recognise that there are difficulties, but we want to work with business to sort them out, because we genuinely believe that there are real opportunities. He asked whether I would meet him and representatives from Wokingham businesses. I would be very happy to. In that spirit, I commend the draft orders to the House. Question put and agreed to . Export and Investment Guarantees Resolved , That the draft Export and Investment Guarantees (Limit on Exports and Insurance Commitments) (No. 2) Order 2024, which was laid before this House on 14 October, be approved. That the draft Export and Investment Guarantees (Limit on Exports and Insurance Commitments) (No. 3) Order 2024, which was laid before this House on 14 October, be approved.— (Martin McCluskey.)

• 13 Nov 2024 · Future of the Post Office · Hansard source

  More

  As I have said, we are clear about our continuing commitment to ensuring that every community, no matter where in the UK, has access to post office services. That commitment has not changed. Indeed, we want to improve the quality of the offer from the Post Office—hence my comments about banking services. However, if it would be helpful, I would be very happy to meet my hon. Friend to discuss his concerns about his community.

• 13 Nov 2024 · Future of the Post Office · Hansard source

  More

  Each time I have met a sub-postmaster who was a victim of the Horizon scandal, I have been shocked by the way the Post Office treated them. I am sure other Members share that sentiment, having spoken to sub-postmasters in their constituencies who were also victims of the scandal. The Post Office’s culture must change fundamentally. I welcome Mr Railton’s plan to set up both a consultative council, to work with sub-postmasters on the Post Office’s commercial future, and a postmaster panel to provide more training and support for postmasters. One of the challenges for the Government, which is why we have committed to publishing a Green Paper, is to think through how we lock in that culture change. My hon. Friend, and indeed other Members, will be very welcome to engage with us during that Green Paper process.

• 13 Nov 2024 · Future of the Post Office · Hansard source

  More

  My hon. Friend makes a crucial point about the future of the Post Office—we must get right the technology that sub-postmasters are expected to use. There were serious problems and delays in the previous Government’s efforts to find a replacement for Horizon. We have had to bring in additional consultants to work with the Post Office to bring forward a proper replacement. More generally, on Fujitsu, we expect the Horizon inquiry to bring forward a view about the accountability of particular organisations and particular individuals. We will look at what Sir Wyn’s inquiry recommends and then make appropriate decisions on those issues.

• 13 Nov 2024 · Future of the Post Office · Hansard source

  More

  The right hon. Gentleman is right to bring the House’s attention back to the issue of sub-postmaster pay: there has been no material improvement in sub-postmaster pay for over a decade. If we are to see sub-postmasters genuinely treated better in the future, addressing the issue of pay is fundamental. I welcome the focus on that by the chair of the Post Office, Nigel Railton, in his speech today. I gently re-emphasise to the right hon. Gentleman that we remain committed to the Government requirement to deliver 11,500 branches, to ensure that every community has easy access to the post office branch network. Communities will absolutely need to be involved in any decisions about individual branches.

• 13 Nov 2024 · Future of the Post Office · Hansard source

  More

  My hon. Friend has always been a great champion of her constituency. I have visited the banking hub in Acton in a previous life, before the general election. I would be very happy to revisit the post office. I hear her message about co-location and I assure her I will look at that. I am sure she will continue to press me on the future of banking hubs in Acton.

• 13 Nov 2024 · Future of the Post Office · Hansard source

  More

  I will happily meet my hon. Friend. As I have said, no decision to close individual directly managed branches in full has been taken. It is right that the Post Office considers the cost of providing directly managed branches going forward if we are to achieve the objective of putting it on a sustainable footing. However, we are absolutely clear that every community in the UK needs to be able to retain good access to post office services, and we are looking at what else we can do with the Post Office senior management team to improve post office services, not least in banking.

• 13 Nov 2024 · Future of the Post Office · Hansard source

  More

  My right hon. Friend is right to stress the importance of post office branches to the future of all our communities. In that regard, work is required from trade unions and others on highlighting the importance of banking services. I wish that work had been given more attention by my predecessor. [Interruption.] With due respect to those on the Opposition Front Bench who are heckling me, it has fallen to this Government to roll out banking hubs in a more significant way. On my right hon. Friend’s more general point about directly managed branches, as I have already said to the House, given that they cost significantly more to run, it is right that we look at those costs. No individual decisions have been taken as yet, and we have made it clear to the Post Office that it needs to consult directly with sub-postmasters, trade unions and other stakeholders.

• 13 Nov 2024 · Future of the Post Office · Hansard source

  More

  I can be absolutely clear with the hon. Gentleman: I said no decision had been made on any individual directly managed branch, and that is absolutely true. We are also clear that sub-postmasters, trade unions and communities will have to be consulted about the future of directly managed branches. We want an improvement in the services that post offices can provide; that is one of the reasons for our work on banking services with the Post Office going forward.

• 13 Nov 2024 · Future of the Post Office · Hansard source

  More

  As I have already made clear, no decisions have been taken to close any directly managed branch. There is a need to look at the costs that the Post Office incurs going forward, in order to make it fit for purpose over the next five to 10 years. As a result, we will need to look at the future of directly managed branches, but only once Post Office managers have talked seriously with sub-postmasters, trade unions and other key stakeholders, as we have made clear to the Post Office. That is the right way to proceed. We have also made clear we will not change the commitment to provide 11,500 branches, which will ensure everybody continues to have good access to a Post Office branch in every part of the country.

• 13 Nov 2024 · Future of the Post Office · Hansard source

  More

  We expect the appeals process that we announced for the Horizon shortfall scheme to be up and running soon—realistically, probably early in the new year. I say gently to my hon. Friend that I share his deep concern that there are so many sub-postmasters who are victims of the Horizon scandal, and who are still to receive their compensation and full and fair redress. We have seen an increase in the numbers getting redress, but there is more work to do; it is a challenge that we are very much focused on as a Government.

• 13 Nov 2024 · Future of the Post Office · Hansard source

  More

  With permission, I will make a statement on the Post Office. Frankly, the Government inherited a Post Office that is simply not fit for purpose, following disinterest from the previous Government, a toxic culture in head office and years of under-investment. Our top priority remains delivering redress to those affected by the Horizon scandal. We have already taken significant steps to increase the payment of redress, which has nearly doubled under this Government. Let me be clear with the House, though. There are still complex cases to resolve, and we have identified gaps in the compensation process, but we are beginning to make progress. As of 31 October, £438 million has been paid to over 3,100 claimants. In July, we launched the new Horizon convictions redress scheme for victims whose convictions were overturned by legislation, and we have announced our intention to set up an appeals system for the much-criticised Horizon shortfall scheme. We were clear in our manifesto that we will work to strengthen the post office network in consultation with postmasters, trade unions and customers. The post office network provides critical services that are valued by communities across the whole of the UK. Their essential services go beyond post; they provide access to cash, banking and other financial services too. This Government recognise that access to cash remains particularly important to millions of people across the UK. Through its network of 11,500 branches across the UK, the Post Office continues to provide vital banking services to communities and businesses alike through the banking framework, and to protect access to cash. I know how highly this House rightly values postmasters and what they provide day in and day out to the communities they serve, but we have to recognise that the Post Office is far from perfect. We have seen this from the evidence given at the inquiry. It is clear that there needs to be a significant cultural change at the Post Office to ensure that it genuinely prioritises the needs of postmasters and delivers customers’ needs far into the future. It is also clear that more needs to be done to rebuild trust within the business and with the public who depend on its services. It is also no secret that the business is facing commercial challenges. Nearly half of its branches are not profitable or only make a small profit from the Post Office business, postmaster pay has not increased materially for a decade, and the company has a high cost base and needs to transform its IT system. Earlier today, Nigel Railton set out his ambition for the future of the Post Office, in his role as its chair. Postmasters have to be placed front and centre of the Post Office, and we agree that the culture of Post Office headquarters, in particular, needs to change fundamentally to deliver that. As part of this, the Post Office plans to reduce central costs and look seriously at other ways to deliver efficiencies, which should enable real-terms increases in postmaster pay. Mr Railton’s ambitions are a new deal for postmasters that puts postmasters at the heart of the Post Office. There will be stronger postmaster engagement in the running of the business. As part of this, a new postmaster panel will be established to enable current postmasters to work with the company to improve the support and training provided to postmasters. The Post Office will also set up a new consultative council that will work with the Post Office’s senior management on how these new plans are taken forward, to provide genuine challenge and maintain focus on the needs of postmasters. Mr Railton’s plan seeks to makes changes to the business, with the ambition of significantly increasing postmaster remuneration, and it sets out an intention to transform the service and support that postmasters receive from the Post Office. No decisions to close any or all of the remaining directly managed branches have been taken. The Post Office will continue to deliver on the 11,500 minimum branches requirement set by Government. We have made it clear to the Post Office that we expect it to consult postmasters, trade unions and other stakeholders before any individual decisions are taken. Aspects of the plans are also subject to Government funding and the outcomes of the upcoming spending review. Lastly, we have already set out our plan to publish a Green Paper to consult the public on the long-term future of the Post Office, not least on how it should be governed after a decade of decline. Doing nothing at the Post Office is simply not an option. There is more work to be done, but there has to be change. I commend this statement to the House.

• 13 Nov 2024 · Future of the Post Office · Hansard source

  More

  Perhaps the hon. Gentleman did not fully hear my answer. There have been no decisions to close any individual directly managed branch. As I have said, significant additional costs come with running a directly managed branch, as opposed to a post office franchise, and it is right that the Post Office look at those costs. To make a similar point to that raised by the right hon. Member for Stone, Great Wyrley and Penkridge (Sir Gavin Williamson), we recognise the responsibility to provide Post Office services to every community in Scotland and across the United Kingdom, so that communities can have easy access to post offices. That has not changed and will not change.

• 13 Nov 2024 · Future of the Post Office · Hansard source

  More

  I welcome my hon. Friend’s question. We need to take a number of steps in order to see mutualisation as a realistic way forward. In the first instance, there has to be a sustained change in Post Office culture about how sub-postmasters are treated. On that, the establishment of the postmaster panel and a consultative council, announced by the chair of the Post Office, Nigel Railton, are significant steps forward. I hope the sub-postmasters in my hon. Friend’s constituency will genuinely engage with those bodies. I do not think we can impose mutualisation; it must come up from the grassroots, with the Government being willing to look at that option. The changes that Post Office senior management is looking to make are a good first step in their own right, and have the potential for future positive governance change in the long run. I genuinely encourage my hon. Friend and his sub-postmasters to engage in the Green Paper process.

• 13 Nov 2024 · Future of the Post Office · Hansard source

  More

  I welcome that the Committee’s first act is to look at redress for sub-postmasters who were victims of the Horizon scandal. I will happily appear next week to talk through where we are on compensation payments. My right hon. Friend is right to say that one of the bright spots in the Post Office’s future lies in banking, and the continuing commitment of its sub-postmasters is the brightest spot. With the right support from the financial services industry, there is clearly more that the Post Office could offer on the high street through banking hubs and the post office network. We will work with the Post Office, and the banks have a particular responsibility, given how many bank branches have closed, to work constructively with the Post Office to improve the banking offer on the high street.

• 13 Nov 2024 · Future of the Post Office · Hansard source

  More

  My hon. Friend makes a strong and compelling case. The criticisms that he has just articulated about the compensation process are ones I have heard directly from victims of the Horizon scandal and their legal representatives. We are looking at a series of further things that we can do to improve the compensation process. We have moved more staff in the group litigation order compensation process to help speed up redress for sub-postmasters in that scheme, whose remaining cases are more complex. Perfectly reasonably, people want to see them compensated as quickly as possible. I am optimistic that for claims that come into the GLO scheme before Christmas, we will see significant redress delivered to victims of the Horizon scandal by March.

• 13 Nov 2024 · Future of the Post Office · Hansard source

  More

  I am absolutely clear that the Government recognise and accept our continuing responsibility to ensure that post office services are available to every community across the UK, and that there is easy access to a post office branch in rural and urban areas alike; we remain absolutely committed to that. As I said, no decision has been taken to close any individual directly managed branch, but it is right that the Post Office considers all its costs if we are to achieve an increase in sub-postmaster pay. In that regard, and on the hon. Lady’s wider point, it is important that the Post Office management consults properly—previous management teams have not always done so—with sub-postmasters, trade unions and other stakeholders.

• 13 Nov 2024 · Future of the Post Office · Hansard source

  More

  I am absolutely open to any idea that will help to speed up the roll-out of banking hubs; I recognise that they are crucial for communities up and down the UK. If he has particular ideas, I am very happy to talk to him about them separately.

• 13 Nov 2024 · Future of the Post Office · Hansard source

  More

  I hope my hon. Friend will forgive me, but I am not aware of the exact circumstances in his constituency, though I am happy to meet him to talk through them, if he thinks that would be useful. As I hope I have set out, we remain absolutely committed to ensuring that every community has good access to a post office branch and all the services that it provides. That is as true for his constituents as it is for the constituents of Members across the House.

• 13 Nov 2024 · Future of the Post Office · Hansard source

  More

  We have made it clear to the Post Office that it has to talk to sub-postmasters, stakeholders and the trade unions about the costs associated with directly managed branches. We are committed to the requirement to ensure there is easy access to a post office branch for every community, up and down the country. We want the Post Office to continue to talk to people who want to run post offices in their communities, and we continue to encourage it to do so.

• 13 Nov 2024 · Future of the Post Office · Hansard source

  More

  I say gently to the hon. Member that I absolutely recognise his point about the role that bank branches play in communities such as Kendal and about their retreat from our high streets. The banks have a responsibility to work with the Post Office to make sure that communities can have access to the banking services that they need, particularly those offered through the post office. That is one reason why we want to significantly expand the number of banking hubs. On the hon. Member’s point about the post office in Kendal, I simply underline the fact that no decisions have been made about Kendal or any other individual directly managed branch. We expect the Post Office to talk to sub-postmasters, trade unions and other stakeholders about this process, but genuinely I say to him that there are significant additional costs associated with the directly managed branches and it is right that the Post Office looks at that as well.

• 13 Nov 2024 · Future of the Post Office · Hansard source

  More

  Absolutely. I recognise that the Post Office has a particularly responsibility to work with sub-postmasters who provide a post office service in rural communities. It is one reason why we remain committed to the requirement to provide 11,500 branches across the UK. One key change that we need to see in the Post Office, and one reason why I welcome the commitments in Sir Nigel Railton’s plans today, is the commitment to a consultative council. That will, I hope, help to ensure that the voices of rural sub-postmasters and sub-postmasters more generally are heard much more directly by senior management. I also welcome the idea of a postmaster panel to provide support to sub-postmasters in general, but, in the context of this question, to rural sub-postmasters in particular.

• 13 Nov 2024 · Future of the Post Office · Hansard source

  More

  I am grateful to my hon. Friend for her question. I hope I can reassure her that when we publish our Green Paper on the future of the Post Office next year, I will welcome the voices of sub-postmasters from Portsmouth, as well as from the rest of the country; that will help us to think through longer-term questions around the future of the Post Office. As I have already underlined a number of times, no specific decisions have been taken about individual directly managed branches. We expect the Post Office to not only look at all its costs going forward but, crucially, consult with sub-postmasters, trade unions and other stakeholders.

• 13 Nov 2024 · Future of the Post Office · Hansard source

  More

  I welcome the hon. Gentleman’s comments, as ever, and I recognise the concerns of his constituents. As I said, we remain absolutely committed to ensuring that every community has good access to post office services going forward, and no decision has been made about directly managed branch closures. If we are to achieve the objective of putting the Post Office on a genuinely sustainable footing and increasing sub-postmaster pay, we must consider all Post Office costs and how we can genuinely deliver, to all communities, a better future for the Post Office. We are doing that, but I am conscious of the strong point that he has made about his constituents.