Inverness MP to seek answers about Thomas Cook collapse
Inverness MP Drew Hendry is set to take part in an inquiry launched by the business select committee into the collapse of travel firm Thomas Cook.
Mr Hendry has already hit out at the company describing the situation as “another sorry tale of corporate greed that has become all too common place in our society”.
More than 6000 people have lost their jobs while a further 3000 have so far been kept on while the fate of the travel firm’s Inverness branch remains uncertain.
Thomas Cook reported a £1.5 billion loss in May and went into liquidation on Monday after the government refused to come up with a bailout.
The business committee, which Mr Hendry sits on, will look at issues around the stewardship of the company, executive remuneration, and accounting practices.
The inquiry is also likely to examine the role of auditors and the impact the collapse will have on small businesses and suppliers.
The committee chairwoman MP Rachel Reeves has also written to the secretary of state for business, energy and industrial strategy Andrea Leadsom.
Ms Reeves raised concerns about the slow progress of audit reform and the alleged “aggressive” accounting practices at Thomas Cook.
Mr Hendry said: “This is yet another sorry tale of corporate greed that has become all too common-place in our society.
“The public rightly expect answers on how it came to pass that this firm was handing out eye watering salaries without audit, or scrutiny – leading to thousands of people losing their jobs, not to mention the hundreds of thousands of holiday-makers left stranded across the globe.
“It is right that, as a committee, we look into the steps that led to the collapse and ensure those involved in the company’s demise face public scrutiny.
“I believe the government has to go further to curb the kind of aggressive high-risk accounting practices that lead to companies of this size going to the wall. Protecting workers and consumers must be our priority.”
The inquiry will seek to question Thomas Cook executives including the CEO, finance director, and chairman, auditors PricewaterhouseCoopers and Ernst and Young, the financial reporting council, and the insolvency service.
The committee will also take the opportunity to question Mrs Leadsom on the UK government’s handling of the affair.
