Future assured for post offices

The future of the Post Office network is secure, a Scotland Office minister pledged yesterday.

Speaking at a conference in Inverness organised by the postal regulator Postcomm and the consumer watchdog Postwatch, the Scotland Office minister Anne McGuire said there had been government support for the industry.

She added: “We have committed £270 million to implement the recommendations of a Cabinet Office report which should help secure the future of the Post Office network.

“In addition, we have given Royal Mail access to £1.8 billion of government gilts which will be available to support the nationwide network of post offices, as well as backing the investment required in the mail business as part of Royal Mail’s renewal programme.”

Responding to criticism that customers in remote areas of the Highlands and Islands pay exorbitant prices for postal packages, she said: “I suppose that people who are distant from centres of population perhaps feel that they may be at the tail end of services, but the great thing about the universal service is that whether you’re posting a letter in Sumburgh or in St Ives, it costs the same and the guarantee is that, for the most part, it will be delivered the next day.

“So rather than look at the difference I think we should look at what draws the UK together in terms of a quality postal service.”

Peter Carr, the chairman of Postwatch, criticised the Post Office’s performance to date and insisted many people in far-flung communities were forced to pay more for the postal service. He said: “The performance of the Royal Mail group over the last five years is abysmal – from a profit of £600 million they have gone to a loss of £1.1 billion and this is while it’s still a monopoly.”