Year: 2005

A warning was issued yesterday that the future of fragile rural communities could be at risk if the Government fails to pledge greater commitment to safeguarding sub-post offices. Allan Reid, Lib Dem MP for Argyll and Bute, is calling for a long-term promise of support for rural post offices. “We have already seen the Clydesdale Bank closing branches and, if the sub-post offices close as well, it’s going to kill a lot of villages, because usually the post office is combined with the local shop, so that will go as well. At the moment there is a guarantee against unavoidable closures of rural post offices, but that stops next year. “The Government has a package in place – a nationwide subsidy – to support local post offices, but that runs out in 2008 and I know that the future of local post offices, without a guarantee for their long-term future, is very bleak.” As well as committing to a long-term subsidy of rural post offices, the Government needs to allow small branches to deal with more transactions, such as vehicle taxation, he said.

Royal Mail’s hopes of giving shares to its employees looked doomed last night after the Conservatives told The Times that they had misgivings over backing the necessary legislation. If the Tories oppose the plans, defeat in the House of Commons appears inevitable because of the huge opposition to the plan from Labour backbenchers. Some 186 Labour MPs have signed an early-day motion opposing any issuance of shares, out of a total of 198 signatures against. Nick Brown, the former minister and ally of the Chancellor, is the latest big name to join the opposition. The number backing the motion is more than half of the parliamentary party and is the majority of those Labour MPs eligible to sign, given that members of the Government and their parliamentary aides are not free to back such motions.