UK government under fire for removing business from POs

The Government came under renewed attack last night over its plans for the post office network.

Ministers were accused of stripping business away from post offices without first deciding how big a network of offices it would keep and of causing “deep offence and concerns” to pensioners by scrapping the Post Office Card Account.

The first accusation came from Aberdeenshire West and Kincardine Liberal Democrat MP Sir Robert Smith.

He launched his attack following Commons exchanges in which Scotland Minister David Cairns said it was up to regulator Postcom how many offices would be needed to keep the legal requirement for Royal Mail to maintain a universal service.

Sir Robert said maintaining a network of post offices in rural Scotland could not be done on the back of Royal Mail’s universal-service obligation, which had a “very minimal base”.

“It will be crucial for the Government to ensure that business can still be done over the counter when it comes to collecting benefits and pensions and to ensure the survival of Post Office Card Accounts,” he said.

Mr Cairns insisted that “no decisions” had been taken on the size and shape of the Post Office network and the Government had invested “thousands of millions” in it.

For the SNP, Mike Weir said the minister was showing “incredible complacency” by saying no decisions had been made. The removal of TV licence and DVLA business, for example, was causing closures now.

“Will you make sure that the Government takes action to end the business going from the post offices?” Mr Weir demanded.

Mr Cairns said the Government was not withdrawing the chance for people to get their road tax at post offices.

“If you had your way, the Post Office would wither on the vine because you wouldn’t have made the investment that we have made,” he said.

Michael Connarty, Linlithgow and Falkirk East, said he shared the concern of pensioners and post office workers over plans to scrap the Post Office Card Account.

“The proposal to get rid of Post Office Card Accounts will damage the infrastructure of the Post Office in rural areas and, in fact, in schemes in urban areas also, where there are no banks to substitute,” he said.

Mr Connarty called on Mr Cairns to discuss withdrawing the proposal with the Trade and Industry Department. He claimed the plan was causing “deep offence and deep concerns to the pensioners in our society”.

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