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BIS Select Committee report into Network Transformation
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BIS Select Committee report into Network Transformation
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Subbie
I won't say I told you so.........but
Subbie
I won't say I told you so.........but
-
subbie
- POST OFFICE
- Posts: 418
- Joined: 03 Feb 2010, 11:41
- Gender: Male
Re: BIS Select Committee report into Network Transformation
Letter to Branches
No: 12LTB550
Ref: 201
Date: 20th July 2012
TO: ALL BRANCHES WITH POSTAL MEMBERS
Dear Colleague,
Post Office: Business, Innovation and Skills (BIS) Select Committee Inquiry - Network Transformation
The BIS select committee, earlier this week, produced its report on Post Office Network Transformation. The report scrutinises Post Office’s plans to transform the network by introducing new operating models in the form of ‘Locals’ and ‘Mains’ Post Offices. The report also outlined “its concerns with regards to the Government’s proposals for change to the ownership and administration of the Post Office network.”
We are pleased to advise Branches that we are extremely supportive of the recommendations to the inquiry, as they are broadly compatible with the concerns we raised in our written and oral submissions.
Background
The CWU gave evidence to the inquiry alongside our Post Bank Coalition partners: The Federation of Small Businesses and the Countryside Alliance on 15th May 2012. Other witnesses were, Mike O’Connor, Chief Executive and Andy Burrows, Head of Post Office Policy, Consumer Focus, James Lowman, Association of Convenience Stores, Paula Vennells, Chief Executive, Post Office and George Thomson, General Secretary of National Federation of SubPostmasters (NFSP).
Our evidence concentrated on our genuine concerns over the lack of public scrutiny of the Post Office’s plans and in particular, the introduction of the new ‘Locals’ model which will lead to reduced services for customers. Equally we highlighted our concerns over the Post Office plan to make pay totally variable, based on sales, and the current fixed ‘core tier payment’ being removed, from our Postmaster members converting to one of the new operating models. Our reservations with this approach were that, eventually this could lead to an unprofitable Post Office, with the potential for a resultant closure most likely.
We also raised wider issues about the future of the network as a whole, as the Network Transformation programme is entirely designed to reduce the reliance on government subsidy beyond 31st March 2015. Network Transformation could also result in a significant change in the size and shape of the Post Office network – with multiple retailers or large supermarkets running substantial elements of the network. This in turn could completely change the brand and social ethos of the Post Office and would impact on any future mutualisation structure. Additionally the changes could affect the network’s ability to deliver front office for government and banking.
What the report highlights
The report criticised the Post Office for:
inadequate research to support the model
a lack of consultation in the pilots
an unrealistic timetable for national rollout
deficiencies in the training programme for Post Office staff
Whilst also flagging up a number of fundamental issues relating to the suitability of the model itself leading to the following recommendations (abridged for simplification purposes):
that the government should commit to active consultation with all groups directly affected by the changes before the ‘Locals’ pilot is rolled out across the country;
that the government should undertake a rigorous assessment of the ‘Locals’ model to ensure it will deliver viable post offices for, and meets the needs of, all types of communities;
that the government must be alive to the real risk that ‘Locals’ will only be feasible for a number of major retailers such as One Stop (Tesco) – which would materially change the social ethos of the Post Office – and should set out a plan to ensure the model is viable and attractive for a range of operators;
that more work should be done to ensure the model meets the needs of customers and service users and isn’t purely a means to cut costs; and
that the government should state clearly that subpostmasters will be able to continue on their current terms and conditions if they do not volunteer for a new model.
The report also considered a range of other issues including proposals to make the Post Office the ‘front office for government’; indicating “The record of Government in delivering services through the Post Office is patchy at best. Warm words and aspirations will not suffice” and that a clear strategy is needed to achieve this. We wholeheartedly support this criticism. In addition it called on the Government to outline a clear road-map for change with regard to mutualisation. Equally, this is another crucial area that has been identified for further attention, which we support.
EDM 368 – Sub-Post Office Funding
This was tabled on 10th July and calls for a reinstatement of the core tier payment as part of the Locals model. We are pleased to say this has 68 signatures in just four days. In view of the findings of the BIS Select Committee report, branches are urged to ensure that every effort is made to engage MPs in supporting our EDM, as detailed in LTB 527 dated 13th July 2012.
Press Releases
A CWU press release in response to the report was issued outlining our position, which is attached. Also attached is a press release from Consumer Focus and an article from the NFSP’s website. Encouragingly, the Labour Party has also come out in support of the report and in turn the Union’s position. In this regard, please see the attached press release from Ian Murray, Labour's Shadow Minister for Employment. Also attached is a press release from the Rural Shops Alliance, who have been a long standing critic of Network Transformation – and provide a particularly scathing attack.
With the wide ranging critical views against the proposed Network Transformation programme, the Post Office seriously needs to be guided by the recommendations set out in the BIS Select Committee report. Failure by the Post Office to embrace the Committee’s recommendations will risk the Post Office alienating itself from a wide range of key interest groups representing: employees; consumers; rural and urban deprived communities and the small business sector.
Simultaneous to the Select Committee publishing its report, Paula Vennells, Chief Executive, also issued the Post Office’s annual report to Parliament entitled “Post Office Network Report 2012”, as required by the Postal Services Act. This report, which is attached, highlighted “a stable network”, “investment, modernisation” and “growth”.
In respect of next steps, we will be documenting the Postal Executive and considering future activity to ensure the Government follows the recommendations laid out in this important report.
Any further developments will be communicated to branches in due course.
If you have any enquiries in relation to this LTB, please contact Nicola Marshall on 020 8971 7484.
Yours sincerely
Dave Ward Andy Furey
Deputy General Secretary (Postal) Assistant Secretary
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For instant updates: http//:www.cwu.org email: info@cwu.org
150 The Broadway, Wimbledon, London, SW19 1RX Tel: 020 8971 7200 Fax: 020 8971 7300
General Secretary: Billy Hayes (http://www.billyhayes.co.uk" onclick="window.open(this.href);return false;)
COMMUNICATION WORKERS UNION
URGENT INFORMATION FOR MEMBERS
No: 12LTB550
Ref: 201
Date: 20th July 2012
TO: ALL BRANCHES WITH POSTAL MEMBERS
Dear Colleague,
Post Office: Business, Innovation and Skills (BIS) Select Committee Inquiry - Network Transformation
The BIS select committee, earlier this week, produced its report on Post Office Network Transformation. The report scrutinises Post Office’s plans to transform the network by introducing new operating models in the form of ‘Locals’ and ‘Mains’ Post Offices. The report also outlined “its concerns with regards to the Government’s proposals for change to the ownership and administration of the Post Office network.”
We are pleased to advise Branches that we are extremely supportive of the recommendations to the inquiry, as they are broadly compatible with the concerns we raised in our written and oral submissions.
Background
The CWU gave evidence to the inquiry alongside our Post Bank Coalition partners: The Federation of Small Businesses and the Countryside Alliance on 15th May 2012. Other witnesses were, Mike O’Connor, Chief Executive and Andy Burrows, Head of Post Office Policy, Consumer Focus, James Lowman, Association of Convenience Stores, Paula Vennells, Chief Executive, Post Office and George Thomson, General Secretary of National Federation of SubPostmasters (NFSP).
Our evidence concentrated on our genuine concerns over the lack of public scrutiny of the Post Office’s plans and in particular, the introduction of the new ‘Locals’ model which will lead to reduced services for customers. Equally we highlighted our concerns over the Post Office plan to make pay totally variable, based on sales, and the current fixed ‘core tier payment’ being removed, from our Postmaster members converting to one of the new operating models. Our reservations with this approach were that, eventually this could lead to an unprofitable Post Office, with the potential for a resultant closure most likely.
We also raised wider issues about the future of the network as a whole, as the Network Transformation programme is entirely designed to reduce the reliance on government subsidy beyond 31st March 2015. Network Transformation could also result in a significant change in the size and shape of the Post Office network – with multiple retailers or large supermarkets running substantial elements of the network. This in turn could completely change the brand and social ethos of the Post Office and would impact on any future mutualisation structure. Additionally the changes could affect the network’s ability to deliver front office for government and banking.
What the report highlights
The report criticised the Post Office for:
inadequate research to support the model
a lack of consultation in the pilots
an unrealistic timetable for national rollout
deficiencies in the training programme for Post Office staff
Whilst also flagging up a number of fundamental issues relating to the suitability of the model itself leading to the following recommendations (abridged for simplification purposes):
that the government should commit to active consultation with all groups directly affected by the changes before the ‘Locals’ pilot is rolled out across the country;
that the government should undertake a rigorous assessment of the ‘Locals’ model to ensure it will deliver viable post offices for, and meets the needs of, all types of communities;
that the government must be alive to the real risk that ‘Locals’ will only be feasible for a number of major retailers such as One Stop (Tesco) – which would materially change the social ethos of the Post Office – and should set out a plan to ensure the model is viable and attractive for a range of operators;
that more work should be done to ensure the model meets the needs of customers and service users and isn’t purely a means to cut costs; and
that the government should state clearly that subpostmasters will be able to continue on their current terms and conditions if they do not volunteer for a new model.
The report also considered a range of other issues including proposals to make the Post Office the ‘front office for government’; indicating “The record of Government in delivering services through the Post Office is patchy at best. Warm words and aspirations will not suffice” and that a clear strategy is needed to achieve this. We wholeheartedly support this criticism. In addition it called on the Government to outline a clear road-map for change with regard to mutualisation. Equally, this is another crucial area that has been identified for further attention, which we support.
EDM 368 – Sub-Post Office Funding
This was tabled on 10th July and calls for a reinstatement of the core tier payment as part of the Locals model. We are pleased to say this has 68 signatures in just four days. In view of the findings of the BIS Select Committee report, branches are urged to ensure that every effort is made to engage MPs in supporting our EDM, as detailed in LTB 527 dated 13th July 2012.
Press Releases
A CWU press release in response to the report was issued outlining our position, which is attached. Also attached is a press release from Consumer Focus and an article from the NFSP’s website. Encouragingly, the Labour Party has also come out in support of the report and in turn the Union’s position. In this regard, please see the attached press release from Ian Murray, Labour's Shadow Minister for Employment. Also attached is a press release from the Rural Shops Alliance, who have been a long standing critic of Network Transformation – and provide a particularly scathing attack.
With the wide ranging critical views against the proposed Network Transformation programme, the Post Office seriously needs to be guided by the recommendations set out in the BIS Select Committee report. Failure by the Post Office to embrace the Committee’s recommendations will risk the Post Office alienating itself from a wide range of key interest groups representing: employees; consumers; rural and urban deprived communities and the small business sector.
Simultaneous to the Select Committee publishing its report, Paula Vennells, Chief Executive, also issued the Post Office’s annual report to Parliament entitled “Post Office Network Report 2012”, as required by the Postal Services Act. This report, which is attached, highlighted “a stable network”, “investment, modernisation” and “growth”.
In respect of next steps, we will be documenting the Postal Executive and considering future activity to ensure the Government follows the recommendations laid out in this important report.
Any further developments will be communicated to branches in due course.
If you have any enquiries in relation to this LTB, please contact Nicola Marshall on 020 8971 7484.
Yours sincerely
Dave Ward Andy Furey
Deputy General Secretary (Postal) Assistant Secretary
EMBED AcroExch.Document.7 EMBED Word.Document.8 \s EMBED Word.Document.8 \s EMBED Word.Document.8 \s EMBED Word.Document.8 \s EMBED Word.Document.8 \s EMBED Word.Document.8 \s
For instant updates: http//:www.cwu.org email: info@cwu.org
150 The Broadway, Wimbledon, London, SW19 1RX Tel: 020 8971 7200 Fax: 020 8971 7300
General Secretary: Billy Hayes (http://www.billyhayes.co.uk" onclick="window.open(this.href);return false;)
COMMUNICATION WORKERS UNION
URGENT INFORMATION FOR MEMBERS