MPs told POCA key to Post Office future

[TrueBlueTerrier]

http://www.24dash.com/news/Communities/ ... ice-future



The Post Office network will start to "unravel" if the Government awards its card account contract to another organisation, an industry leader warned today.

The Post Office is bidding to keep the card account, which handles benefit payments, but the contract is currently out to tender.

George Thomson, general secretary of the Federation of SubPostmasters, told a committee of MPs that the £1.7 billion being put into the system by the Government to maintain a national network of branches will be "wasted" if the work goes elsewhere.

He told the Business and Enterprise Select Committee: "If the Department for Work and Pensions gives the contract to anyone else, the Post Office will start to unravel."

The organisation's business model would "collapse" without the card account, whereas renewing the contract would be a stepping stone to the Post Office becoming a postal bank, similar to what happens in France, Italy and Germany, said Mr Thomson.

He told MPs that the federation would not support any more closure programmes after it had co-operated over the current plans to shut 2,500 branches, which will leave 11,500.

"We have to move away from constantly closing post offices. The UK has a population of over 60 million and has the second biggest economy in Europe - surely we must have the ability to support a post office network of 11,500."

The Post Office card account, launched in 2003, is used to receive benefit, state pensions and tax credit payments.

Customers collect payments over the counter at a Post Office branch.

Gordon Lishman, director-general of Age Concern, criticised the "rushed approach".

"The rushed approach the Government and the Post Office Ltd are taking to the 2,500 planned post office closures, risks failure.

"The key to making the post office network successful in the long term is listening to the people who use and depend on their post office. A six-week local consultation is simply not long enough to allow local needs and opinions to be thoroughly heard.

"We know that the vast majority of older people consider their post office to be a lifeline, with many vulnerable older people relying on the post office for access to essential services.

"This lifeline must not be severed. Anyone who is concerned about losing their local post office and wants to get their voice heard should write to their MP or Councillor."

Mr Lishman added: "Many of the up to two million pensioners with Post Office card accounts are worried about losing this account, which suits their needs.

"Our research show that high numbers of older people strongly support the accounts and want to be able to access their money through the post office. If this account is to change it must be replaced by a better product and must remain post office-based."

[Lounge Lizard]

"renewing the contract would be a stepping stone to the Post Office becoming a postal bank" - what, like National Girobank established by the GPO in 1968 or '69 but sold off to Alliance and Leicester by the tories in the '90s ?