Postcomm calls for a long term strategy for UK's PO Network

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Postcomm calls for a long term strategy for the UK's post office network

http://www.psc.gov.uk/news-and-events/n ... twork.html

17 November 2008

Postcomm, the independent postal services regulator, today called on the Government and Post Office Ltd to work with all stakeholders to develop a long term strategy for the network of UK post offices.

Postcomm’s eighth annual post office report to the Government is published as Post Office Ltd moves into the final stages of its Network Change Programme, which involves the closure of around 2,500 post offices. Postcomm says a long-term strategy is needed to reduce uncertainty, safeguard against further unplanned closures and build confidence in a sustainable post office network.

Nigel Stapleton, Chairman, Postcomm said, “Subpostmasters have invested their own money in the network and are currently operating in one of the most challenging economic environments for retail business.

“Unless the Government is able to provide a clear vision for the future of the network, we are concerned that the network will shrink further because of unplanned closures.”

Postcomm welcomes last week’s decision by the Government to allow Post Office Ltd to retain the contract for the Post Office Card Account because it ends one of the uncertainties for subpostmasters.

Postcomm’s report recommends that Post Office Ltd should build on its partnerships with local authorities and ensure the commitment of subpostmasters to a more enterprising network by providing the right training, business advice and incentives.

The Business and Enterprise Committee’s recent report stated that financial arrangements between Royal Mail and Post Office Ltd should be more transparent. Following a review of the current arrangements, Postcomm is recommending that the charges from Post Office Limited to Royal Mail need to be based on more robust cost information in the next inter-business contract. Post Office Ltd responded with a commitment to use the most up to date information when its agreement with Royal Mail is renegotiated.

After careful consideration and discussions with a wide range of interested parties, Postcomm has concluded that the Government should consider demerging Post Office Ltd from the rest of the Royal Mail Group. This would enable these two very different businesses to focus more attention on their significant, but divergent problems.
Notes for editors

1. A full copy of the report: Postcomm’s Eighth Annual Report on the Network of Post Offices 2007/08 (pdf, 1044KB) is available. There is also a separate 16-page A5 summary (pdf, 466KB). Printed copies of both documents will shortly be available free from Postcomm at Hercules House, 6 Hercules Road, London, SE1 7DB.
2. During the year, Essex County Council pioneered a new model of support for post offices and the first local authority-backed post office opened in September 2008. Devon County Council is considering a grant-aid scheme to support local retailers providing post office services. The Government has encouraged Post Office Ltd to engage with local authorities.
3. The Business and Enterprise Committee of the House of Commons recommended that there should be more clarity about the finances of the network. It also recommended that Postcomm should include a thorough examination of the post office network as part of its work, in its report: After the Network Change Programme: the future of the post office network, HC 577, 2 June 2008.
4. Our report was completed before the Government announced its decision on the Post Office Card Account on 13th November.


Postcomm’s Eighth Annual Report on the Network of Post Offices 2007/08 (pdf, 1044KB) http://www.psc.gov.uk/postcomm/live/new ... report.pdf

There is also a separate 16-page A5 summary (pdf, 466KB) http://www.psc.gov.uk/postcomm/live/new ... ersion.pdf

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News
17 November 2008
Postcomm�s demerger for Post Offices damaging and incompetent

The CWU today (Monday) brands Postcomm �incompetent� for its proposal to demerge the post office network from Royal Mail.

Billy Hayes, general secretary, said: �Postcomm is again displaying its incompetence in managing the UK�s mail system by making this proposal to demerge the post office network from Royal Mail.

�Separation would create greater uncertainty for the network. Royal Mail needs the post office to provide a universal service while the post office remains dependent on Royal Mail for approximately a third of its revenue. Separation would threaten not strengthen this revenue stream.

�Separation is unnecessary to achieve Postcomm�s stated objectives which include enabling private operators to access the post office network. This is clearly Postcomm trying to push its own agenda of privatising Royal Mail instead of assessing the real issues facing the mail network.

�We welcome Postcomm�s recognition of the importance of the community role of the network and support for training and enterprise. The post office network plays a crucial social and economic role and does not need further threats to its future.�