MP calls for inquiry into collapse of holiday firm
SHADOW Business Minister Bill Esterson has called for a public inquiry into the collapse of Thomas Cook after it was revealed that European governments had stepped in to offer support while the UK government allowed it to fold.
Of the company’s 563 stores to shut, Skelmersdale and Maghull were affected along with Formby, Crosby and Southport.
The Sefton Central MP said it was a disgrace that 9,000 members of staff in the UK, including many local people, faced going without pay this month while German, Spanish and Scandinavian subsidiaries continued after lastminute support from their governments.
The MP said parts of the business could have been saved, and in fact should have been, in order to help bring stranded holidaymakers home.
The cost of the company’s collapse, he said, could be as much as £1.2bn when taking into account the costs of repatriation and the payouts that would be needed to compensate those whose holidays had been cancelled.
Constituents have reported to the MP that there was some excellent work at Thomas Cook regarding staff wellbeing, which would now be lost.
He said: “Thousands of staff, including many in my constituency, face not being paid this month, while many of the company’s executives have walked straight into jobs with subsidiaries across Europe.
“Once again the bosses have walked away with their earnings intact while the hard working staff on the ‘shop floor’ suffer.
“What I am hearing is that the airline part of the business at least could have been saved.
“The company was doing great things with staff wellbeing and support.
“That is how a company builds productivity and ultimately becomes successful. “Now that has been lost. “The Germans and
Scandinavians saved their parts of the airline.
“The Turkish and Spanish governments wanted to provide a loan – the UK government should have been talking to them. ‘‘
Mr Esterson added: “The collapse of Thomas Cook will devastate the tourist industry in these countries.
“The knock-on effect will be that there will be less capacity for British holidaymakers to travel abroad, which will lead to price increases. “Everybody loses. “Any inquiry into Thomas Cook must be public and question the government’s decision not to step in with a shortterm loan to help parts of the business survive.”