Post Office Closures
January 22, 2007 1:31 PM
• Post Office Closures - On the 14th December 2006, Trade and Industry Secretary Alistair Darling announced a new strategy for the Post Office network, which they expect will lead to the closure of a further 2500 urban and rural post office branches by 2009. A summary of the proposals is as follows:
o Investment of up to £1.7bn over five years to support the post office network and enable the Post Office to modernise and place it on a more stable footing;
o A new account to replace the Post Office Card Account when its' contract ends in March 2010.
o Support to enable the Post Office to expand its' financial services for customers, including a roll out of up to 4,000 free-to-use ATMs across the network.
o Annual subsidy of around £150m to continue until at least 2011 to help safeguard a national network with an expectation that a continuing subsidy will be needed after this.
o New access criteria to preserve a national network, and ensure that rural communities and customers in deprived urban areas will continue to have reasonable access to Post Office services.
o Post Office Ltd to set up 500 innovative outlets for small, remote communities - including mobile post offices, and services in village halls, community centres and pubs;
o An investigation into what role local authorities and the Devolved Administrations in Scotland, Wales and Northern Ireland might play in influencing how Post Office services are best delivered in the future.
o Post Office Ltd to develop new market and business opportunities for the network among internet companies and other mail operators. For example, providing customers with the ability to pick up parcels they have ordered through mail order companies or via internet services from post office counters.
Alistair Darling outlined the Government's ongoing support for a national network, but stated the need for there to be some reduction in its size, to reflect the fewer number of people regularly using the post office and the losses the network continues to make. Last year the network lost £2 million every week, rising this year to £4 million despite an annual public subsidy of £150m.
A consultation on the proposals is running until 8th March 2007. To respond, the consultation document can be found here: http://www.dti.gov.uk/consultations/page36024.html.
To support the Lib Dem's campaign for action to protect the Post Office network, please use the following link: http://www.libdems.org.uk/commerce/issues/postoffice.html
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