Blair deals blow to post offices
Tony Blair has ruled out providing further subsidies for post offices despite receiving a massive petition from campaigners.
However, the PM has pledged to “consider all options” in response to calls for greater protection for the network.
Sub-postmasters from across Leicestershire attended a rally in London yesterday to protest against plans they fear will put a quarter of the county’s post offices out of business.
John Peberdy, from Loughborough, the chairman of the National Federation of Sub-postmasters, presented Mr Blair with a petition signed by four million people, including 330,000 from Leicestershire.
Campaigners say the move to pay pensions and benefits directly into bank accounts instead of through the Post Office card account will devastate post offices, especially rural branches. They are calling for the plan to be scrapped.
The Government says the 800 smallest post offices are used by an average of 16 people a week and the rural network is supported by an annual subsidy of GBP150 million.
In the Commons yesterday, Mr Blair told MPs: “Of course we will look at all the options, but what we won’t be able to do is say there is even more subsidy available than the money we are already putting in.
“The reason there is a problem is that more people are using bank accounts rather than the Post Office and it is important, therefore, to realise that there is a process of change that any Government would have to handle in this situation.”
Mr Blair said the Government had ploughed GBP2 billion into post offices since 1997.
Sub-postmasters arrived at Whitehall under a sea of red umbrellas with “save our post offices” picked out in gold.
Mr Peberdy said: “So many people have backed this campaign the Government has to take notice. Many sub-postmasters have written to their MPs and will continue to lobby them about this. If we cannot stop the Government implementing the pensions and benefits scheme, the viability of a quarter of the county’s post offices would be in danger.”
Under the Post Office Card Account, pensioners and benefit claimants swipe a card to get their cash. The Post Office receives a payment of about 15p for each transaction.
The Government intends to scrap the system in 2010 – a move that postmasters said would cripple their businesses, especially since they have lost contracts for TV licences.
The Department for Work and Pensions says it does not expect branches to close as a result of the end of the card account.
