Essex proposes local model for POs

[Geezer]

Essex proposes local model for POs
http://www.lgcplus.com/InthisweeksLGC/2 ... ffice.html

* Published: 30 October 2008 02:30
Roding Valley Post Office

Essex CC helped this PO stay open



Handing the Post Office's national branch network to local government would maintain much needed grassroots services, according to a new report.

Essex CC launched its radical plan as the Post Office's future was again called into question when business secretary Lord Mandelson expressed regret that he had not privatised parent company the Royal Mail a decade ago.

Essex's Counter Measures report claimed local councils could provide a better and cheaper service if they took over the network and its £150m government subsidy.

It said each branch closure could cost a council £61,000 a year in extra support for the isolated elderly.

Stephen Castle (Con), Essex's cabinet member for economic development and regeneration, said: "Our proposal is to bring the local post office into the family of local government services and recognise them as the important community asset that they are."

Councils would commission services from local postmasters and negotiate bulk deals for them with the remaining commercial services arm of the Post Office. Branches would no longer be burdened with an arbitrary share of the company's national overhead.

Essex has led talks with the Post Office to develop a model allowing councils to reopen branches (LGC - Signed, Sealed, Delivered 16/10/08).

Local Government Association senior policy consultant Ian Keating said: "This is in line with what we have been arguing, that local authorities can handle postal services and then the public subsidy would come from the bottom up."

Amelia Cookson, head of service transformation at the Local Government Information Unit , welcomed Essex's move.

"The Post Office has hardly covered itself in glory," she said. "It has failed to keep services in local communities and has been an active impediment to financial inclusion initiatives."

A Devon CC spokesman described the proposal as "interesting" but said more research into the risks was required.

A Post Office spokeswoman said it would "continue to constructively engage" with Essex.

* Author: Mark Smulian.