Thomas Cook: Union leader calls for ministers to face scrutiny over travel firm’s collapse

‘There are questions about what the government knew about possible financial assistance from Europe,’ says Manuel Cortes

Tourists feared being stranded after the firm's collapse last month (AFP)

A union leader has called for ministers to be held to account for the loss of thousands of jobs and chaos for holidaymakers with the collapse of Thomas Cook.

Manuel Cortes, general secretary of the Transport Salaried Staffs Association, said questions should be answered about how much the government knew about possible financial assistance from European governments.

He is pushing for the Commons business committee to question ministers and Peter Fankhauser, the former Thomas Cook chief executive.

The travel giant closed down in the early hours of Monday 23 September after a financial rescue deal fell apart. About 21,000 Thomas Cook staff globally lost their jobs, including 9,000 in the UK, who have not been paid since.

The 150,000 customers abroad at the time were brought home free of charge in airlifts organised by the Civil Aviation Authority (CAA), known as Operation Matterhorn.

But hundreds of thousands of travellers who bought packages from the failed holiday company have been told they will have to wait another week before even beginning the refund process – with the likelihood of no money back before December, The Independent has revealed.

And smaller airports such as Newcastle, East Midlands and Cardiff are likely to be hardest hit.

The head of the repatriation scheme has told how planning had begun well before the company announced it was going into liquidation.

Mr Cortes, in a meeting due with Rachel Reeves, who chairs the committee that is investigating the collapse, is expected to call for ministers to be put under the spotlight.

He has already called for the resignation of Andrea Leadsom, the business secretary, over her handling of the crisis.

Mr Cortes said: “It’s crucial that the business committee use every lever at their disposal to get to the bottom of why Thomas Cook was allowed to go under.

“There are other questions to answer about how much the government knew about possible financial assistance from European governments.”

A government spokesman said: “The collapse of Thomas Cook is devastating for those who have lost their jobs, and affected holidaymakers. A government bailout would not have solved the company’s financial problems.

“The business had been experiencing financial difficulties for many years and was carrying the burden of repayments on £1.6 billion of debt it had built up after coming close to collapse in 2012.

“A government bailout would have thrown good money after bad, leaving taxpayers to pick up the bill.

“When a large company faces difficulties, it is standard procedure for one department to act as a single government contact. In this instance it was the Department for Transport.

“In response to the collapse, the government has promptly convened a national taskforce to support employees and the local communities affected.

“We have asked the Insolvency Service to fast-track their investigation into the circumstances surrounding Thomas Cook going into liquidation.”

Thomas Cook’s auditor, EY, is under investigation by the accounting watchdog, the Financial Reporting Council (FRC).

The FRC said it would look at EY’s audit of Thomas Cook’s financial statements for the year ending 30 September 2018, adding that the probe could be broadened if required.

That could spell trouble for EY’s Big Four rival, PricewaterhouseCoopers, which was Thomas Cook’s auditor until 2016.

Additional reporting by PA