Thomas Cook — House of Lords, 2019-11-05
Topic: Domestic Commerce
Jennifer Elizabeth Randerson (Liberal Democrats, Centre to centre-left): My Lords, I thank the Minister for repeating the Statement. It raises some very serious issues. I echo the concerns of the noble Lord, Lord Stevenson, and his inquiries about how Thomas Cook came to be in this very risky situation—risky for its customers. Is it because the law simply has no coverage of this area for companies? In other words, do we need to start absolutely from scratch in terms of legal requirements for companies? Or is it that Thomas Cook actually cut corners and could potentially be judged to be on the wrong side of the law in due course It is absolutely appalling that people who have suffered very serious injury, and indeed died, as a result of incidents when they were customers of Thomas Cook could find themselves in this very difficult position. We all know that when a company goes into liquidation, it takes years to sort it out, even in the best of circumstances. As it stands, who has priority as creditors for Thomas Cook? In addition to that, what are the Government’s plans for plugging the gap that clearly exists in this situation after the election? The Government are looking to add a capped fund. Of course, that means there will be people who remain badly out of pocket. They will not be compensated as they should be when things have gone wrong. The official receiver is conducting an inquiry into the situation for Thomas Cook. Can the Minister explain how long it is likely to take for the inquiry to report I want to raise one or two other issues of concern, following the demise of Thomas Cook. They are not of the order of magnitude of what was in the Minister’s Statement, but they are still serious. The CAA has done some amazing work to repatriate so many people. I know that CAA staff were literally sleeping in the office, because they were being called on to work such long hours. This is the second time in as many years that they have had to do this job and they are clearly getting quite practised at it. It is not acceptable that staff are being put under such huge amounts of stress. Are the Government considering additional resources for the CAA so that staff are not put under quite so much pressure when this happens again, as it almost certainly will There are still almost 2,000 Thomas Cook customers who paid by direct debit and have yet to receive their refunds. The original promised date for refunds was 14 October. These customers are a small percentage of the total, but this is a bad time of year for people to be owed money—significant amounts of money. I would like an explanation from the Minister as to whether the Government or any agency are able to provide support to those who are now having to fill in forms. There might well be vulnerable people who find this process extremely complex and our experience is always that the most vulnerable people find it most difficult to complete bureaucratic processes such as this Finally, the Government promised a review of insolvency legislation following the Monarch financial crash, the purpose of which was to enable companies to continue to trade long enough to bring customers home so that that responsibility did not fall on the Government again. It has happened again, and I would like to follow up with the Minister whether that work is still ongoing and whether the Government intend to introduce a change to insolvency rules to clarify that situation.