Scotland's post office network facing crisis

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A warning has been sounded about the state of Scotland’s post office network, with new figures revealing that many have closed or been put up for sale in the past year.

And there are fears that the rate of closures will only increase as a result of uncertainty being created by legislation currently going through Westminster.

Provisions in the new Postal Services Bill to effectively split Post Office Ltd from one of its biggest cash sources, Royal Mail, are viewed in many quarters as a potentially catastrophic move.

Last night critics said the UK Government must do more to ensure post offices secure extra services to make their finances viable, particularly in Scotland’s rural areas where the network is a lifeline for the community.

The warning has been sounded by the Communication Workers’ Union in a submission to the Scottish Affairs Committee, which is scrutinising the passage of the Bill.

It quotes Post Office data that reveals 21 of 162 post offices closed in 2010 in the UK were in Scotland.

And, of more than 900 post offices up for sale in the UK at the end of the year, 51 were north of the Border.

While the Coalition Government has stated that there will be no programme of post office closures, the union has told MPs of the financial risk to many existing branches.

It warns that “Post office closures will continue as sub-postmasters leave and are not replaced”.

The union says: “Post Office Ltd’s financial position is a particular issue for Scotland, given that 70% of branches are in rural areas, where revenues are significantly lower than average.

“Post Office Ltd’s figures show that less than 23% of rural branches generate more than £40,000 per annum in remuneration, compared to 69% of urban and 65% of urban-deprived branches.”

It warns the network in Scotland “is in a precarious position financially” as rural branches were “typically being less well remunerated and less economically viable”.

The CWU claims the 21 post offices that closed last year were listed as “long-term temporary closures” but that is a euphemism for closure. Five of them are on the for sale list.

They said the post offices are simply not reopening after being put up for sale, or when the postmaster leaves or retires. Those that do reopen will do so as a diminished service, such as an outreach van on set days. The union also claims the fate of other post offices up for sale remains unclear but they could be lost through what it described as the “temporary closure loophole”.

Post offices are classed as long-term temporarily closed if a buyer cannot be found.

A CWU spokesman said: “Many sub-postmasters in Scotland are retiring or leaving the business because of the low levels of revenue generated in sub-offices. In many cases the Post Office struggles to find alternative premises or service providers.

“The primary reason for this is that buyers cannot be found due to instability being caused by the progress of the Postal Services Bill which does not legislate for an inter-business agreement (IBA) between Royal Mail and the Post Office.”

The new Postal Services Bill would see up to 90% of the Royal Mail sold and a heavily subsidised post office network.

Mike Weir, SNP MP for Angus, is a member of the Westminster committee currently scrutinising the Bill. He is not surprised by the closure figures and believes the closures will increase when the legislation is enacted.

He said: “Post offices have struggled in recent years across Scotland and there is nothing in the new legislation in my view that is really going to help them.

“The floating off of Post Office Ltd as a separate company I think is very dangerous because post offices already rely on Royal Mail for the bulk of their business and there is no guarantee in the legislation of a long-term business agreement between the two.

“The Government are just leaving it entirely to the two companies, so you are going to be left with a privatised Royal Mail negotiating with a very weak Post Office Ltd. That’s not good for many post offices, particularly in rural areas.”

Dr Michael Foxley, LibDem leader of Highland Council, said: “The UK Government has got to realise just how vital it is that post offices continue in rural communities.

“Indeed it has become even more vital in the Highlands. One of the cuts the council has been forced to make is that it will not be handling cash from people wanting to pay their council rents or council tax.

“This will save us £500,000 a year, but it is going to be absolutely critical that people who don’t have cars can make their payments at the post office.”

A spokesman for the postal watchdog Consumer Focus Scotland described the closure of post offices as worrying: “Every post office that closes represents a loss to the community it served. When people have to travel further to their nearest post office, it’s the older and less well off who are hit hardest,” he said.


‘It would be a big loss if we were ever to lose it’


Case Study

By Marisa Duffy and David Ross



In the shadow of the Campsie Fells, the village of Milton of Campsie has remained largely unchanged for more than a century.

Lying 10 miles north of Glasgow, it is characterised by residential streets fanning out from a Victorian-built high street that is home to a smattering of shops, a church, a pub and a post office.

The solid sandstone building bears the date 1886. Its ground-floor frontage has been painted in the distinctive colours of the post office; dark green trimmed with red. The building can be seen from approaches from all directions and the post office motif is a welcoming beacon.

Even on a dreich bank holiday, there is a definite buzz as residents walk their dogs around the village and pop out for the morning paper. Everyone stops outside the post office to read the notice on the door that explains it is currently closed due to flooding.

While this closure is temporary, many fear for the future of this rural lifeline. Like 50 others in Scotland, this post office is up for sale. The current owners were unavailable for comment yesterday but residents were united in their support for the service.

Joe Hutchison, 75, has recently moved back to the area after living in Durban in South Africa for 35 years. “Compared to what we had in South Africa, there is a really efficient post office service here. I’ve been really impressed.”

For a newcomer, the shop is a vital point of contact. “It’s also good place to get to know people,” said Mr Hutchison. “I can see that it would be a big loss to the community if we were ever to lose it.”

Elisabeth Downie, 47, agrees that it is a linchpin of community life.

“It’s a very nice post office, really efficient and has friendly staff who are particularly helpful with the elderly, helping them pay their bills. I usually come in about once a week and it’s always busy.

“You always get a bit of news when you go in and it’s a good place to find out things. It’s a real focal point of village life.”

Ms Downie, who moved to the village 25 years ago, added: “It would be a great loss if the village were to lose its post office.

“I’m lucky because my daughter has a car but for others who don’t drive they would need to get the bus to Kirkintilloch and the buses are a bit hit and miss. It’s also the extra time involved.”

Gary Coombe, 30, a father-of-two, has lived in the village all his life. “I must admit it is more used by the older generation.

“I pay all my bills by direct debit or online so I don’t use the post office as much as I used to, but it is still very much the heart of the community. It would be sad to see it go, especially for the older residents who use it frequently.”

For sub-postmasters across the country, this is a worrying time. Caroline MacKechnie, sub-postmistress on the Island of Raasay since 1999, provides postal services along with running the island’s shop.

She said: “It has already been a hard time for small post offices and a lot of people are retiring and are not being replaced. The price of property is often still too expensive for new people to buy in and take over.”

She has watched many of the neighbouring sub-post offices on the island of Skye close down to be replaced by vans coming at designated times every week to provide postal services to rural communities.

“I don’t think that could work here as there are days when the ferry can’t sail because of bad weather. So we are perhaps protected being an island.

“However there is no doubt along with our counterparts in other fragile rural communities, we could benefit from more services being channelled through the post office. That would make us more secure. The best thing would be to increase the banking facilities offered.”