Post Office managers jeer Hewitt's vision for network sub postmasters conference

Patricia Hewitt was jeered by post office managers yesterday as she outlined the government’s vision for the network.

Officials said the trade and industry secretary was “pretty furious” at what she felt was the “blatant grandstanding” of her hostile reception at the National Federation of SubPostmasters conference in Bournemouth. But delegates were angered by what they saw as her failure to give assurances on future incomes for the beleaguered urban post office network.

Ms Hewitt was defended by Allan Leighton, Consignia’s chairman, in a rousing speech that won praise and a standing ovation.

“She has not in any way inhibited any of the things I want to do. I’m quite glad that she is there. I have got a lot of faith in that relationship and her ability to let us get on and do the right things for the business,” he said. Mr Leighton was applauded for his tough talking on Consignia’s parlous finances. He said every part of Consignia’s business was under operational review and “it would be a disgrace if the whole business continues as it is”.

He was cheered as he said he was not considering selling the business to overseas competitors. “We have not got anything to sell. Nobody is going to buy a business losing Pounds 1.5m a day.”

But he said the next six months would be very tough as “we dig ourselves out of a bloody great pit”.

About 3,000 sub post offices, one-third of the urban network, are expected to close in a government-backed restructuring plan over the next two years.

Many post offices run by independent managers through a franchise agreement with Consignia have become commercially un-viable and face the loss of 40 per cent of their revenue when the government pays benefits and pensions directly into bank accounts from April.

Ms Hewitt expressed sympathy at the “anxious and difficult” time sub postmasters were facing and said she would “redouble” her efforts to help the post office network.

But she failed to convince the audience of 400 that government plans for universal bank services – offering accounts at post offices to millions of benefits claimants who do not have or cannot get their own facilities from high street banks – would be offered to enough people to stem the loss of income.

“The government should be very aware the public will not settle for this,” said one delegate. “It was slick presentation from the minister but the wheels slightly came off when the questions came,” said another.

* Beverley Hughes, the prisons minister was jeered – as she addressed the Prisoner Officers’ Association conference in Portsmouth. The minister had to defend a recent 6 per cent pay rise awarded to officers, which many POA delegates complained was insufficient.