Sub-postmasters' 'morale so low' – concerned MSP (UK)
North east of Scotland MSP Nanette Milne has voiced fears that more Post Office branches could shut in the future after the current 2,500 closure programme consultation ends.
It follows the announcement by Post Office Ltd last week that 40 Post Office branches would close.
Dr Milne said: “I have real concern as to what the Labour Government intends to do with Post Offices in the future. Speaking to sub-postmasters the North east it is clear that morale has never been so low. As they look to the future what is clear is that if sub-postmasters retired and were not replaced would other branches close? There is growing concern that the network may just be run into the ground.
“The Business and Enterprise Select Committee, Chairman Peter Luff MP has said there could be a further 4,000 closures, mainly if sub-postmasters retired and were not replaced, and that there could be no compulsion to replace sub-postmasters who retire.
“A recent report by the Business and Enterprise Select Committee noted that the Post Office had estimated a network of around 7,500 would meet the national criteria for access to branches, although Government funding and the company’s business case were both based on the number of outlets remaining at 11,500 after the current closure programme is completed.”
She added: “I do not think it is satisfactory simply to accept that the network may continue to shrink in an unplanned way between now and 2011. Post Office Ltd should be obliged to use its best endeavours to keep the network at a minimum of 11,500 fixed outlets.
“It is essential that the Labour Government and Post Office Ltd are singing from the same hymn sheet to eradicate doubts that there will be further closures after 2011. The European Commission has authorised significant government funding for the network because it provides vital economic services.
“It is unsatisfactory that the ultimate decision on post office closures is left with the chairman of Post Office Ltd’s parent company, Royal mail Group, which may be directly affected by the network’s profitability but is not well placed to consider its role in sustaining individual communities.
“The future shape of the network is a matter of direct political concern and the Labour Government must take ultimate responsibility for ensuring its considerable subsidies are being used to secure a network which meets the public’s needs.”
Dr Milne also commented on the Post Office Card Account contract, which is currently up for tender, with the result of who will run the contract in future, expected this summer.
She said: “There is now growing concern that if the network loses the Post Office Card Account contract it will have a devastating impact on the network and up to 3,000 branches could close.”
