Post Office has potential to become Government Front Office

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Mandelson - Post Office has potential to become "Front Office" for Government

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Business Secretary Lord Mandelson today welcomed the news that the Post Office has signed a five-year contract to support DVLA in issuing millions of motorists with photographic driving licences using new, world class technology.

Lord Mandelson said:

"I am passionate about the Post Office and strongly believe that if the right steps are taken there is a positive future for the network. But nostalgia is not a currency that will enable the Post Office to thrive.

"It must innovate, look to future and identify new opportunities and new ways of doing business. That's why I welcome the contract the Post Office has signed with DVLA.

"Today's announcement will enable a large number of Post Offices to act as a one-stop-shop for drivers to renew photographs on their licences.

"The Post Office's trusted brand, unrivalled network, experienced staff and the new technology being purchased for the contract put the company in an excellent position to bid for other work. It can turn itself into a real front office for Government."

The decision to award this contract to the Post Office further demonstrates this Government's continuing commitment to the Post Office network.

The Government is providing up to £1.7bn of funding to the Post Office, including £150m a year to help support a network of around 11,500 branches to 2011. It has made it clear that it will continue to support the non-commercial network beyond this date.

In November the Government announced that it would renew the contract for the Post Office card account. The account is used by four million people including two million pensioners. It brings millions of people into Post Offices and benefits the retail side of branches up and down the country.

The new Government sponsored Savings Gateway is designed to help people on low incomes save. It will be available through Post Offices who are well placed to deliver this service.

The Government's Postal Services Bill is currently at committee stage in the House of Lords. It reinforces the commitment that the Post Office will remain in public ownership in its entirety. The Bill will also enshrine in law measures to protect the six-day-a-week, one-price-goes-anywhere 'universal postal service'.