Concern over delays in the setting up of Post-Office-Based Bank

IT’S A HOLD-UP! CONCERN OVER DELAYS IN THE SETTING UP OF POST-OFFICE-BASED BANK

By By Matthew George THE Government has denied it is considering scrapping the Universal Bank, which is at the heart of its plans to save village post offices.

The Department of Trade and Industry categorically denied reports that the future of the new post office-based bank was in doubt.

But Consignia, as the Post Office is now called, is increasingly concerned about a delay in drawing up a detailed blueprint for the Universal Bank.

It is due to come into operation in April 2003 but bosses are worried they will not have enough time to develop the complex computer technology which will be needed.

There is believed to be a dispute within Government departments about how many people will be able to open new basic accounts at post offices.

Pensions and benefits can be paid into these accounts, allowing people to continue to collect them in cash at their local post office.

And post offices will get money from each transaction, as well as extra custom, helping to make up for losses from the end of the current paper-based system, which will be phased out from 2003.

Those losses threatened thousands of sub-post offices, especially in rural areas and on inner-city estates.

It triggered the Western Daily Press Don’t Stamp Out Our Post Offices campaign, which was supported by well over three million people, and forced Ministers to come up with a rescue package that included the Universal Bank.

It would be hugely damaging if it was now scrapped, after months of negotiations with the major EDITION: WP Late City PAGE: 21 SECTION: News