Thumbs up for people's bank by the union

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Thumbs up for people’s bank by the union which floated the idea

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by Keith Richmond

THE Communication Workers Union has welcomed plans for a people’s bank at the Post Office. The union sees it is as vindication of its position defending the Post Office as a vital public service. Indeed, it was the CWU which first put forward the idea of extending banking services at the Post Office – general secretary Billy Hayes made the case for “a new people’s bank” in Tribune on October 24 2008.

Mr Hayes told Tribune this week: “Establishing a Post Office people’s bank provides a clear and practical opportunity for both Government-backed banking and a successful sustainable post office network. With deposits in the Post Office and National Savings and Investments soaring, there is clear demand for Government-backed banking.”

He added: “The irony is that the Post Office used to have Girobank, which was sold off to Alliance & Leicester and has, in turn, been bought by Santander.”

The Department for Business Enterprise and Regulatory Reform, led by Peter Mandelson, announced last week that it wants to provide more services at the 12,000 post offices throughout Britain.

The department has asked the House of Commons Business and Enterprise Select Committee to examine ways to help make the plan work.

Royal Mail chief executive Adam Crozier said: “Royal Mail has been very clear that we want to expand the range of banking services we provide through the Post Office network and there are a number of things in the pipeline.”

The CWU has long argued that the Post Office, with its nationwide network of branches, is perfectly positioned to fill the gap left by banks which have tried to boost profits by closing branches – leaving many people in many parts of the country without a branch nearby.

“It’s very good news”, said one senior CWU source. “But then it was a CWU idea. Our only fear is that Mandy’s view of a people’s bank may not be the same as ours.”

The union believes such a plan will not only help save the Post Office as a successful business – and the jobs of its members – but also provide an important public service.

And Lord Mandelson believes it will help head off criticism from left-wing Labour MPs as well as the union unhappy with recommendations in the Hooper Report to part-privatise the Royal Mail. Privatisation would, they fear, mean fewer jobs, fewer post offices and poorer services for the public.

BERR promised on Monday this week that there would be no more closures beyond those announced last year.

Mr Hayes said: “While we welcome the support of ministers for the people’s bank, this cannot be used as trade-off to pressurise support for a part-privatisation of Royal Mail. Why muddy a popular idea with a deeply unpopular one?

“The British public is fed-up with privatisation and free-marketeering. The failure of the banking system could rovide the perfect opportunity to strengthen the post office network, revitalising it as the shop front for both Government and mail services.”