RESCUE PLAN TO SAVE POST OFFICE NETWORK

A raft of measures designed to halt the closure of post offices was
announced
by junior trade and industry minister Alan Johnson today.

A £2 million Government fund will be established to support initiatives by
community groups who want to maintain or reopen post offices in areas
where
closure rates are high, Mr Johnson disclosed.

And he told the House that the introductory payment that new
sub-postmasters
were previously required to pay _ equivalent to 25% of their first year’s
incom
e
_ will be abolished from April 1.

MPs heard that a revision of the Code of Practice on Post Office closures
will
also be undertaken to look at options and alternative solutions for
branches
facing closure.

Mr Johnson disclosed that a senior executive role in the Post Office was
being
created to oversee the network’s interests.

Other schemes to bolster the retail businesses linked to branches will be
undertaken through a relaunch in April of the National Federation of
Sub-postmasters’ “Counters Club”.

Mr Johnson claimed that the measures would attract new sub-postmasters to
the
Post Office.

And he commented: “People have been convinced over the last two years that
it
is a dying network and we have to restore to confidence in it.

“These are important measures, practical measures, to restore the
confidence
in the network.”

Mr Johnson contended that a Tory government would privatise the Post Office
and he joked: “We will not go down that particular Railtrack.”

mf
PA NEWS, 15th February 2001