Scotland's post offices left to die claim MPs

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more savage cuts fearedunless government acts
Scotland’s post offices left to die, claim MPs

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By David Perry

Published: 07/07/2009

UK Government departments were under fire last night for failing to act to save lifeline post offices in the north and north-east.

They were accused of giving “inadequate” responses to an inquiry by MPs aimed at securing the futures of branches across the country.

The criticism was accompanied by a warning that another round of cuts twice as severe as the last – which saw 130 sub-post offices axed in the north and north-east – may follow unless urgent action is taken to ensure the viability of those remaining.

A report by the Commons business and enterprise committee said the UK still has 11,500 post office branches – 500 more unplanned closures have taken place since the cuts – and only 7,500 are needed to provide the nationwide network required by Royal Mail purely for collection and delivery purposes.

The MPs were furious at the lack of positive proposals from departments for work that could help sustain the existing network, which requires a subsidy of £150million-a-year to run.

Seven departments, including the Scotland Office and those responsible for communities and local government, children, schools and families and energy and climate change, failed to respond at all to a letter from the committee asking what they could do to help the network become viable.

Most others responded without addressing questions raised by the MPs, and only the Home Office and the Department for Transport produced “thoughtful” replies, the report said. It demanded, as a start, accepting a public demand that post offices act as a mail or parcel delivery and collection service for all mail operators and couriers, not just Royal Mail and profit from a huge upsurge in internet business, with private individuals and businesses in need of a place to send and receive parcels.

The MPs’ shopping list of business opportunities range from better financial services to advice centres, leaflet sources, local authority services and biometric information collection for passports and ID cards.

Gordon Liberal Democrat MP Malcolm Bruce said the post office network was “a huge national asset which the government has not only failed to use but has systematically undermined to the point of destruction”.

He accused ministers of relying on the goodwill of hard-up local postmasters and mistresses to keep offices open and said the future of the network “worries me” because “if the government does not halt the decline more and more will give up and close”.

Angus SNP MP Mike Weir said: “Successive governments have failed to take proper account of the post office network.

“Unless action is taken to stabilise and sustain the network we could well see a further round of losses – and that would be disastrous.”

Aberdeen North Labour MP Frank Doran said the report was “absolutely right” in proposing possible areas of work that post offices could undertake, particularly financial services.

But he and Mr Weir were both “disappointed” the committee did not back proposals for a Post Bank.

Argyll and Bute Lib Dem MP Alan Reid urged the government to take the committee’s proposals seriously.

He said: “It is because they did not do so in the past the network is in the difficulty it is in now.”

Orkney and Shetland MP and Lib Dem Scottish affairs spokesman Alistair Carmich-ael said the proposals “are exactly the sort of fresh thinking the post offices need.”

The report said: “It is bizarre that government policy recognises the value of the network, but that individual departments do not see that they have a role in making sure that everybody, not just the web enabled, has access to their services.

“The biggest barrier to the expansion of government services offered through the network is the attitude and lack of imagination of most government departments.”

Business Minister Pat McFadden said: “We will consider the proposals in detail.

“Identifying new opportunities and new ways of doing business are the key to ensuring a positive long-term future for the post office.”

George Thomson, general secretary of the National Federation of Subpostmasters, said: “We are delighted that MPs on the committee have recognised this potential and called on government departments and councils to step-up efforts to offer services through post offices, and for contracts to be awarded at a fair price so that sub-postmasters are able to make a living from their post office.”