Post Office Network
In the run up to the
local elections local opposition candidates are issuing scare stories about the closure of
Post Offices. Whilst there is currently
a review (the ‘Network Change Programme’
or NCP) into the network and some further planned closures are to be announced, we
won’t know the proposals for Birmingham until 24 June, when there will be a public
consultation.
The National Federation of SubPostmasters (NFSP), who represent the interests of postmasters and
postmistresses are supporting the review. The
NFSP want the NCP to go ahead, as at least this will be managed change, rather than
leaving us with ad hoc closures, as happened
when the Tories were in Government. In the NFSP’s view, the alternative to the NCP is
mass unplanned Post Office closures. Under the
NCP there will be minimum access standards and the Government is putting in additional
money to ensure agreed standards of service.
I am in contact with all
the postmasters and mistresses in my constituency and from this it would appear that there
is nothing to justify suggestions in the leaflets being distributed as part of the
election campaign that particular post offices are under threat. On the contrary, one of the postmasters has told me
he has no idea of the origin of the scare that his Post Office is under threat, as his
business is doing very well. There is no
reason to close post offices that are well used and providing a good living to the
proprietor and I would fiercely resist any attempt to do so.
As well as writing to
the postmasters and mistresses and planning a meeting with them, I have made a submission
to the Independent Review of the Postal Services Sector that was set up by the Government to examine the impacts of
liberalisation of the UK postal services. A copy of my letter is printed below.
One issue is how the
Government and Post Office Ltd plan to use the Post Office Network to deliver key services
and new products, which will be vital if the Network is to become sustainable. I
strongly criticised the BBC over their decision to take the issuing of TV licences away
from post offices. Contrary to poular
perception, this was not a Government decision. Therefore
I am asking the people running our local post offices what ideas they have for additional
Government business they could take on.
For its part, since 1999, the Government has invested over £2bn
in the Post Office network, including £480m for the Horizon Project to bring modern
computer systems into every post office in the country for the first time - enabling Post
Office Ltd to launch a range of new products and to open its counters to potentially over
20 million bank customers. Most of the rest
has been for the support of post offices in rural and deprived urban areas. There will be a further investment of £1.7bn up to
2011. Though the Tories criticise post office
closures, they haven’t said they would put any additional money into the network, nor
how they would finance what is planned if their own policy of cutting public expenditure
were to take place.
I will update this
webpage once we know what the proposals are for Birmingham.
Meanwhile I would encourage constituents to make good use of our post
offices. I would particularly recommend the
use of the Post Office Card account for benefit payments!
Letter for the Independent Review of the Postal Services Sector
24 April 2008
I am writing to register my support for the points made by Royal
Mail and the key proposals outlined by the CWU in their submissions to the Independent
Review of the Postal Services Sector.
I am concerned that Royal Mail’s overall financial
situation is increasingly fragile and that falling profits and declining mail volumes,
coupled with the fact that it has one of the UK’s biggest unfunded pension deficits,
is making it difficult to survive in an increasingly competitive market place.
It is my understanding that Royal Mail is facing a number of
challenges that are the result of over regulation, including regulation to such a degree
that it is forced to provide unprofitable services. For example, the creation by Postcomm
of the ‘access headroom’ rule has contributed to the rapid decline in Royal
Mail’s market share. The decision to give rivals guaranteed margins, means that Royal
Mail can never be competitive no matter how efficient it becomes.
The ‘access agreements’ have allowed rival companies
to cherry pick the most profitable contracts and, once they have accessed the market, they
give the items back to Royal Mail to deliver, which in real terms means the Royal Mail
loses up to 2p on each item it handles in this way. Royal Mail needs to be able to
charge its rivals a fair price for this ‘final mile’ service.
Postcomm decided to liberalise the postal services at a faster
pace than was required by the EU and the results have had a damaging impact on Royal Mail.
I am very concerned that in the future, the company will struggle to maintain its
universal postal service obligation, which is an important and essential public service.
Furthermore, I am also opposed to any further extension of post
office closures, which will withdraw services, which elderly and vulnerable members of
society need most. The National Federation of SubPostmasters warned recently that
thousands more post offices face closure if the government awards the Post Office card
account contract currently held by Royal Mail to the private sector. This further loss of
key post office functions would be a terrible blow after the decision of the BBC to
withdraw TV licence payment arrangements from post offices, a decision I strongly
criticised at the time.
I should be grateful for confirmation that this letter will be
considered.
Yours sincerely,
LYNNE JONES MP
Previous postings on Post Offices
2007
2004
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