Calls to halt Post Office closure plans

The Government was today urged to step in over “potentially devastating” plans to close 3,000 urban post offices.

Welsh Assembly minister Jenny Randerson said proposals to close four urban post offices every working day for the next three years would have a terrible impact on hundreds of communities.

But the Liberal Democrat Welsh culture minister said the Government was “oblivious” to their needs.

“The Post Office network forms the hub of the local community – in some areas they are the only remaining retail outlet and must be protected,” she said.

“Many constituencies may lose five or more branches, yet the UK New Labour Government remains strangely silent, despite being the principal shareholder of the Post Office, and is oblivious to the needs and wishes of its stakeholders.

“These figures clearly show the potentially devastating impact that the closure programme could have on local communities.”

Mrs Randerson’s comments come on the back of revelations from David Mills, the chief executive of the Post Office network, who said 1,000 urban post offices would close a year until the end of 2005.

Post Office Ltd, owned by Royal Mail, this year revealed a #270 million Government-backed restructuring plan for the struggling urban network.

The Post Office network last year made pre-exceptional losses of #163 million.

The programme will offer sub-postmasters compensation for closing their branches.

Rural branch numbers will be protected in line with a Cabinet Office report, which said they were a vital part of local communities.

But urban branches have come under pressure as there are too many of them competing for business.
The problem has been exacerbated by difficulties in recruiting new sub-postmasters to replace those leaving.
Branches have also been hit by the direct payment of benefits and pensions into bank accounts.
But Mrs Randerson said there was no suitable criteria to decide which branches would be closed.
“It will be decided by individual postmasters in each area, and so we could find the situation where the busiest branch closes but the quieter branch remains,” she said.
“For some people, these changes will be a huge inconvenience, but for many others the implications of having to open and operate a bank account will create massive problems.
“According to the evidence provided by the FSA consumer panel on financial exclusion, banks provide a very poor service to people on low incomes and those who have had problems with debt.”
The Prime Minister has backed the programme to change the Post Office saying the current situation is not sustainable.
But challenged by Liberal Democrat leader Charles Kennedy in the Commons, Tony Blair denied that 3,000 urban post offices were scheduled for closure.