poca account

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Wednesday, 05 November 2008
North West Evening Mail Pensions payout plan is nonsense
Last updated 17:21, Monday, 03 November 2008

JUST when you thought Mr Broon’s government couldn’t make any more crazy decisions it appears they are on the brink of another.

This time their tinkering could lead to a further 3,000 post offices closing and result in pensioners queuing in off-licences and garages for their pensions.

Up until now the Royal Mail has run the Post Office card account which processes millions of pensions and benefits payments. It seems to me to be the perfect relationship.

Post offices are secure and the one which I frequent is professionally and efficiently run by experienced staff, all of whom know what they are doing.

However, as it would appear likely, the Department of Works and Pensions will award the annual £200 million contract to PayPoint, a business that operates out of convenience stores, garage forecourts and off-licences.

I don’t know about you but the thought of financial transactions being handled in a place where people go to stock up on special brew before going off to talk to pigeons in the park doesn’t fill me with confidence.

With garages and “offies” not exactly visited by the majority of pensioners it’s not pleasant to think we could soon see elderly ladies queuing alongside cider-swigging hoodies.

And this might be just me looking for the negative aspects of the plan but isn’t stashing a load of cash in an off-licence, or open-all-hours garages for that matter, just asking for trouble?

It’s a bit like a one-stop shop for your average villain – booze fags and cash all in one place – a convenience store for robbers – marvellous idea.

The Royal Mail has its faults but it is regulated and supervised by government appointed watchdogs.

It’s geographical reach makes it the perfect outlet for the £27 billion worth of transactions involved.

Many post offices rely on the card account for anything up to 20 per cent of their business and it’s likely that the loss of the contract will result in large scale closures in addition to the 2,500 announced earlier this year as a cost-cutting exercise.

A few years ago there were 17,000 post offices in the national network.

If, as expected, Mr Broon makes his announcement to award the contract to PayPoint (judiciously waiting until after the Glenrothes by-election on Thursday) that figure could fall to as low as 9,000 in less than two years and could well be the end for rural post offices.

It’s very likely that PayPoint have put in a lower bid for the business but the cheapest option is not necessarily the best decision.

And besides, when does getting a good deal mean anything to Mr Broon and his fiscally challenged chums?

Haven’t they just handed over billions of pounds of our money to ailing, inefficient businesses (banks) whose bosses seem incapable of the most basic of financial calculations?

Why should this contract even be offered to anybody else?

The system isn’t broken or even failing. People, young and old, like going to their post office.

It’s familiar, safer and enduring, embedded in the national consciousness and in the words of the song – “You don’t know what you’ve got ‘til it’s gone.”

[fmrPOSTIE]

According to "sources" tonight, POCA will remain with Post Office Ltd beyond 2010.

Good news.

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i really do hope so.

[TrueBlueTerrier]

http://ukpress.google.com/article/ALeqM ... 2kf1ns8mwA