R epo r t o f t h e Selec t C o m m it t ee o n C a stleto w n AND BALLASALLA SUB-POST OFFICES S elec t C o m m it t ee o n C a st let o w n a n d B a lla sa lla Su b -P o st O ffic es Mr J D Q Cannan MHK (Michael) Mrs B J Cannell MHK (Douglas East) Mr G M Quayle MHK (Middle) " The Committee was established by a resolution of Tynwald sitting in October 2002 appointing a Select Committee of three Members to investigate and report on the manner and circumstances in which Isle of Man Post awarded the agency for Castletown sub-post office to the Manx Co-op. The Committee's remit was extended by resolution of Tynwald sitting in June 2003 to include an investigation of the announcement by Isle of Man Post of its intention to relocate the Ballasalla Post Office, and produce findings in a joint report. The powers, privileges and immunities relating to the work of a committee of Tynwald are those conferred by sections 3 and 4 of the Tynwald Proceedings Act 1876, sections 1 to 4 of the Privileges of Tynwald (Publications) Act 1973 and sections 2 to 4 of the Tynwald Proceedings Act 1984. Copies of this Report may be obtained from the Tynwald Library, Legislative Buildings, Bucks Road, Douglas IMI 3PW (Tel 01624 685516, Fax 01624 685522) or may be consulted at ixjixTW. hmwald.0r7.im All correspondence with regard to this Report should be addressed to the Clerk o f Tynwald, Legislative Buildings, Bucks Road, Douglas IMI 3PW. C/CSP003/ mck To The Honourable Noel Q Cringle MLC, President of Tynwald, and the Honourable Members of the Council and Keys in Tynwald assembled. R epo rt of th e Select C o m m ittee on Castletow n AND BALLASALLA SUB-POST OFFICES OVERVIEW OF THE COMMITTEE'S WORK The Select Committee's remit 1.1 At the October 2002 sitting of Tynwald a Select Committee of three Members was established- To investigate and report on the manner and circumstances in which Isle o f Man Post awarded the agency far Castletown sub-post office to the Manx Co-op. 1.2 At the June 2003 sitting of Tynwald the Committee's remit was extended to include- An investigation of the recent announcement by the Post Office of its intention to relocate the Ballasalla Post Office, and produce findings in a joint report. C/CSP003/ mck Meetings of the Committee 1.3 Your Committee were elected by Tynwald Court on 17th October 2002 and first met on 22nd October 2002, when the Chairman of the Committee was elected. We have met on a total of sixteen occasions, of which seven have included public hearings in which oral evidence has been received from the following:- Mr R E Quine MHK, Chairman of Isle of Man Post Mr W R Collister, Chief Executive of Isle of Man Post The Hon J A Brown SHK, Member of the House of Keys for Castletown Mr J R Houghton MHK, Member of the House of Keys for Douglas North Mr J J Cringle, Chairman of Castletown Commissioners Mr M Mellon, Human Resources Director, Isle of Man Post Mr M Kelly, Postal Operations Director, Isle of Man Post Mr ] Dale, Counters Manager, Isle of Man Post Mr M Hewison, Accounting Manager, Manx Co-operative (CWS) Limited Mr A F Morris, former subpostmaster at Castletown Sub-Post Office (by telephone link) Mrs A C Joughin, an applicant for Castletown Sub-Post Office Mrs P Davenport, former subpostmistress at Ballasalla Sub-Post Office Mr C M Davenport, husband of Mrs P Davenport 1.4 The Hansard record of this evidence is at Appendix 1. Written evidence received 1.5 The written evidence received is listed at Appendix 2. Under Standing Order 3.23(8) this material has, on account of its volume, not been printed with this Report but has been, and remains, available for examination in the Tynwald Library. 1.6 An overall chronology of events in relation to the Sub-Post Offices at both Castletown and Ballasalla is at Appendix 3. 3 C/CSP003/ mck PART I - CASTLETOWN SUB-POST OFFICE ACCOUNT OF EVENTS The previous subpostmaster's appointment 2.1 Mr A F Morris was formally appointed subpostmaster of Castletown Sub-Post Office under a contract dated 16th February 2001, on terms which stated explicitly that Mr Morris was an agent of Isle of Man Post and not an employee. On 1st April 2002, Isle of Man Post agreed to an assignment of Mr Morris's interest under that contract to a company, which we understand was wholly owned and controlled by him, called Golden Harvest Limited ("Golden Harvest"). 2.2 Mr Morris, however, remained liable for the performance by Golden Harvest of the duties of subpostmaster and he acted as guarantor of that company's obligations; in addition, Mr Morris undertook himself to perform the subpostmaster's obligations in the alternative - see clause 3 of the Deed of Assignment of 1st April 2002. 2.3 Mr Morris's formal appointment had been preceded by some delay. The evidence we have heard indicates that a Mrs J Saunders, who had been the previous subpostmisstress, had resigned and her notice had expired before it had been possible to find a successor, and that her contract had, according to Mr M Kelly, Isle of Man Post's Operations Director, been extended by mutual agreement to help cover the period between the expiry of her notice and the commencement of Mr Morris's contract. Mr Morris's resignation 2.4 On 6th June 2002, a meeting was held at Mr Morris's request between him and two officials of Isle of Man Post, Mr John Dale and Mr Mark Mellon. Mr Dale was the Counters Manager and Mr Mellon the Human Resources Director. 4 C/CSP003/ mck 2.5 Mr Mellon's note of the meeting indicates that Mr Morris wished to discuss his intended resignation and the "mechanics" of how it would be taken forward. Mr Morris said his health had suffered because of the stress of trying to change Isle of Man Post's "archaic" systems, and in consequence he had decided to retire to Spain and to sell his property. 2.6 Mr Morris then said that he had received an attractive offer for the flat above the Sub-Post Office premises which he owned at 10 Arbory Street in Castletown, and was seeking a buyer for the Sub-Post Office premises themselves. Mr Morris said that the Sub-Post Office premises were not guaranteed to the Isle of Man Post and might, depending on the bids he received, be used as a legal office, an insurance company or for an estate agent's business. 2.7 After establishing that the Isle of Man Post did not wish to buy the premises, Mr Morris then expressed his wish to leave the Sub-Post Office on seven weeks' notice instead of after the contractual twelve weeks, but Mr Dale said that that would not be acceptable. 2.8 On 10th June 2002, Mr Dale confirmed that in writing to Mr Morrris, saying that Isle of Man Post would however permit the five weeks' difference between what Mr Morris wanted and the Isle of Man Post would accept to be taken as holiday leave, provided that Mr Morris remained responsible for the running of the Sub-Post Office by the staff there. Mr Dale's letter continued: "We cannot guarantee that the Post Office will remain in the current premises. This depends on the options we are given by the applications we receive." 2.9 On 19th June 2002, Mr Morris replied with formal written resignations, both on his own behalf and on behalf of Golden Harvest; he asked for confirmation that the last day of service would be 18th September 2002. Mr Dale wrote back on 22nd June 2002 acknowledging Mr Morris's letters and confirming 18th September 2002 as the last day of service. Isle of Man Post later noted in the file, on 22nd August 2002 following, that clause 9 of section 1 of Mr Morris's contract had provided that- 5 C/CSP003/ mck "If, on resignation of his appointment, the subpostmaster disposes of his private business and/or premises in which the Sub-Post Office is situated, the person acquiring the private business and/or the premises or exchanging contracts in connection with the purchase of the private business and/or premises will not be entitled to preferential consideration for appointment as subpostmaster." The selection of new candidates - the Manx Co-op 2.10 Isle of Man Post then advertised for a subpostmaster or subpostmistress, with a closing date for applications of 15th July 2002. Applications were received from five candidates, four of whom were individuals and one of whom was Isle of Man Co-operative (CWS) Limited ("Manx Co-op"). Of the individual applications, one was from a Mrs A C Joughin, whose application was received late but who was nonetheless admitted for consideration with the other applicants. 2.11 Three of the candidates were interviewed on 29th July 2002, and the remaining two, including Mrs Joughin, were interviewed on 8th August 2002. All the interviews were conducted by Mr Dale and Mr Mellon, the two officials who had had previously met Mr Morris on 6th June 2002, prior to his formal resignation. 2.12 Mr Mike Hewison was seen, representing the Manx Co-op, on 29th July 2002, and emerged as the favoured candidate from those seen that day; he is recorded as being a Manager, and Board member, of Manx Co-op.