EU holds sway over UK post office funds

Bridgwater’s mp Ian Liddell-Grainger stated in the January 6 issue of the Bridgwater Times that he hopes to clarify the situation regarding post office closures and is mystified as to why post offices need to be closed when there is an annual rural grant of GBP150 million.

The right to give state aid was signed away by the British Government to the EU and now permission has to be sought from that body before the Government can give aid – the post office being a prime example of this state of affairs.

The permission for the subsidy was initially granted by the EU for three years and the present subsidy finishes in 2008.

The EU has not agreed to an extension.

The plight of post offices has been exacerbated by the withdrawal of such services as the sale of TV licences, as well as pressure on pensioners to make alternative arrangements for receiving their pensions.

The sum of GBP150 million is set with no adjustment for inflation.

I understand that the EU competition commissioner, Neelie Kroes, not a name that springs to mind for instant recognition, stated that she was happy to endorse the subsidy until 2008 now that the Government had agreed to axe post offices.

The EU states on its web site that ‘the importance of postal services for the economic prosperity and social wellbeing makes this a priority area for EU action’.

Bearing in mind that the EU no doubt considered agriculture and fisheries a ‘priority area for EU action’, I fear greatly for the future of our postal services in rural areas.