Post office closures reach record levels

THE Government yesterday faced fresh embarrassment over its pledge to save the post office network, as new figures showed that closures are running at record rates. New figures produced by the Department of Trade and Industry yesterday showed that a net total of 547 post offices closed in the year to the end of March – the highest figure for more than 20 years. The number of closures is well above the 381 recorded in the previous year, which was itself a major increase on the previous average of around 200 closures a year. The closure rate was particularly serious in rural areas, where 435 post offices closed last year. But there was also an increase in the number of urban closures, with 112 closing last year. Ian Park, Devon branch secretary of the National Federation of Sub-Postmasters, said the situation was “very disappointing”. Mr Park said that while some closures had been prompted by the computerisation of the network, the majority came as a result of uncertainty about future profitability when the Government automates the pension and benefits payments system in 2003. He added: “The major problem is the doubt about the future. That is making it difficult for post offices to be sold – there is not the same market as there was, especially for the smaller ones. “People who should have retired three or four years ago and have been unable to sell, have just decided to sell anyway because they do not see the situation getting better.” The figures come as a blow to the Government which last year pledged to end all “preventable” closures of rural post offices. Massive public pressure, including a huge WMN readers’ petition, forced the Government to announce a Pounds 270 million rescue package for the post office network last year. Trade and Industry Secretary Stephen Byers yesterday said that although the number of closures was higher than last year, there were some encouraging signs that it may have peaked, with the closure rate falling in the second half of last year. Mr Byers said 123 rural and 46 urban post offices had reopened last year. Mr Byers also announced that a deal had been finalised with the major banks on the creation of a new Universal Bank to be operated through the post office network. Eleven of the largest banks have agreed to contribute Pounds 180 million a year to the running costs of the new bank, with the Government meeting any financial shortfall. The new bank will allow pensioners and benefit recipients to continue receiving their payments in cash at their local post office. Mr Byers said: “This is a major step forward, both in ensuring the future of the Post Office network and in tackling financial exclusion. “The network is a precious national asset and universal banking is part of the Government’s ambitious programme of protection, investment and modernisation.” Mr Park welcomed the agreement with the banks, which he said would help to restore confidence in the network. But he said more details were needed on how the new bank would operate.
Copyright 2001 Western Morning News. Source : World Reporter (Trade
Mark) – FT McCarthyWESTERN MORNING NEWS, 09th May 2001