The minister has denied the “discord” that led to the resignation of the Post Office chairman, amid calls for a “massive cultural change” in the management of the Post Office.
Trade Minister Kevin Hollinrake said “very serious governance issues” led to Henry Stanton’s resignation, adding that he had not received any severance pay.
Hollinrake told MPs that an interim chair would be appointed “soon” but that a permanent replacement would need to be “the right leader” to implement further changes.
Mr Stanton stepped down as chairman of the state-owned company after nine years as chairman of WH Smith, having been appointed in December 2022.
He was tasked with leading the board of directors at a time when management was in turmoil in the aftermath of what was said to be Britain’s biggest miscarriage of justice.
From 1999 to 2015, more than 700 branch managers were indicted by the Postal Service after flaws in Horizon accounting software made it appear as if money was missing from their branches.
Answering urgent questions, Mr Hollinrake told the House of Commons: “The current chair position has not been effective, and we have had to make a difficult decision whether to change course or wait until the chair recovers.
“Given the difficult circumstances of the Post Office and the importance of the role of the Chair, the Corporation Commissioner took decisive action.
“We understand that members will want to know more details about this decision, especially given the intense scrutiny the Post Office has rightly been under at this time, beyond its handling of the Horizon scandal. I can confirm that there have been issues, but as you can imagine, that’s what I believe.”I cannot comment on the details of individual personnel matters. ”
For Labour, shadow business minister Rushanara Ali said the government’s decision to announce Mr Stanton’s resignation at the weekend was “unusual”.
She continued: “The Minister has assured us that this decision is in fact substantive and is not simply the result of a personal rift between Mr Stanton and the Secretary of State (Kemi Badenoch). Can you give me a guarantee?” he continued.
Mr Hollinrake replied: “I don’t know why she feels this is some kind of rift or has any evidence of it, as she says.
“This was about a governance issue, a very serious governance issue… It’s a confidential matter, it’s a personnel issue.”
He added: “This was not about holding anyone accountable for the Post Office’s past problems. This is about the future governance of the Post Office, which is why Mr. Stanton’s resignation was mutually agreed upon. .”
Conservative MP Bob Blackman (Harrow East) said: “Following the Horizon incident, it is clear that a major cultural change is needed to drive the management of the Post Office, and in particular its relationship with subpostmasters. ” he said.
He added to the Minister: “I will make sure that whoever is appointed to this position as chairman thoroughly addresses this need to change the culture, changes other board members as necessary, and does what we all want. Will we be able to ensure that the changes that we see happen?” See? “
Hollinrake highlighted efforts to improve the relationship between the Post Office and the Deputy Postmaster General, adding: It’s the right leadership on the board that can do that, and that’s what we took over the weekend. ”
Hundreds of sub-postmasters and sub-postmasters are still waiting for compensation, despite the government announcing that those whose convictions have been quashed will be eligible for a payment of £600,000.
A legal investigation into the story is ongoing and sparked renewed public outrage after it was dramatized on ITV’s Mr Bates v Post Office earlier this month.
Former Conservative Party minister Ranil Jayawardene asked for confirmation whether Mr Stanton had received or received any severance pay.
Mr. Hollinrake replied, “Yes, I can confirm that. There was no payout or severance package.”
SNP business spokesman Richard Thomson said: “When it comes to Horizon, I think people can be forgiven for having suspicions that ministers are a bit like the Japanese lunar lander. It’s like when something hits you, it suddenly comes to life.” In this case he was aired by the ITV program. ”
Liam Byrne, the Labor MP who chairs the Business and Trade Committee, said: “Leaving the Post Office rudderless at a time when people are literally dying before they can get relief is a situation we cannot live with. Not,” he said.
Mr Hollinrake replied: “I cannot accept the assumption that there is no rudder and that the chief executive is still there. I spoke to the chief executive a few minutes ago in advance of this urgent question.
“We will appoint an interim person as soon as possible, followed by a permanent replacement shortly thereafter, and the board’s day-to-day operations will continue.”