Speech to MPs on Post Office Network

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We have gathered MPs here today because the CWU along with our fellow colleagues in the Post Bank Coalition are concerned about the changes that are due to be made to the Post Office Network. –

Changes that we believe will lead to closures in the long term beyond 2015.

The current strategy to sustain the network is seriously flawed and we want to ensure MPs get the full picture. -

There has been no debate in the House of Commons on the issue and no consultation with the public. –

It is only since anecdotal evidence from Sub-Postmasters has started to trickle in that we are seeing the holes in this strategy.

For the record the CWU now have a growing number of Postmasters as their members.

The Post Office recently presented to the public via the press that this network transformation programme is the largest investment and network support programme in the history of the post office.

Yet this announcement hides some of the facts and is spin.

The £1.34 bn is money over four years not three as suggested. Almost 50% of this money is for network subsidy. Money that has been earmarked in previous years.

Additionally this four year package means transforming over 50% of the current branch network over three years. –

They will be transferred into a main or a local. –

20% of the network will be become a local.

The other 30% mains.

These changes are being made without consultation with parliamentarians or the public. –

They are being dressed up as a ‘better retail experience’ and much is made of the extended opening hours and money to modernise the post office.

On the face it this all sounds plausible and encouraging! Modernised Post Offices and longer opening hours. But that’s not the reality and we are not told all the facts.

We have huge concerns about the locals model. 20% of network will be downgraded, meaning fewer services available. - Customers will be served at a retail till for their postal services.

There will be little privacy, there are issues over access to cash for customers, particularly in rural areas and there are increased security risks.

However that aside, both of the mains and locals models involve changing the remuneration package. –

Postmasters will no longer receive a guaranteed income under the ‘core tier payment’ scheme instead they will receive variable pay based on transactions. –

For most of the Postmasters we have spoken to the economics just don’t stack up. –

It could lead to running a post office that’s unsustainable and eventually lead to post offices closures.

I know the post office is losing money and it needs to be inventive and think of ideas that will ensure its sustainability, but this plan lacks one crucial factor – there is no extra revenue for the Post Office. – It’s a cost cutting exercise. –

The Post Bank Coalition had a brilliant plan to reinvigorate post offices, by creating a post bank, one that would be run with a low risk balance sheet and provide lending to small business and financial services to communities. –

This would have increased footfall. -

Instead the Post Office is relying on its existing footfall to boost the retail footfall of a small shop owner.

This is a nonsensical approach!

We are asking parliament to scrutinise these plans properly, and if necessary for the National Audit Office to report on the value for money these plans offer.

We would like to see a moratorium on the changes, until we are sure that the business model is fit for purpose, well into the future.