Minister puts post office fund on hold

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Nov 10 2007 by David James, South Wales Echo

A SCHEME aimed at providing a better future for post offices will not be brought back this year, the Assembly Government has decided.

Social Justice Minister Brian Gibbons has put the Post Office Development Fund on hold – even though it forms part of the coalition agreement between Labour and Plaid.

The news is a blow for all the branches not included in the list of 31 slated for closure in South Wales.

Although the region’s remaining 153 post offices will stay open with Government subsidy until 2011, most sub-postmasters know they must increase profits or face an uncertain future after that.

The Assembly Government said it was committed the fund but that it wanted to see how the Post Office’s closure plans would affect the rest of Wales before making a decision.

Bill Hopkins, 38, who received a £50,000 grant from the fund for his post office on Grand Avenue, Ely, said the fund was a lifeline.

He said: “I am absolutely convinced that without it we would have shut.

“The grant did make a difference. Trading conditions for post offices have been terrible but the grant allowed us to bring in new business.

“Having the new office made it easier to sell the new products Post Office Ltd is bringing in.â€