Tag: Mail Services

UK post offices in jeopardy despite big cutbacks

The future of some post offices remains uncertain despite a huge closure programme designed to boost the financial viability of those that remain, an official report has found. Almost one in three, or 7,000, post offices has been closed in the past 22 years, to the fury of many small communities and elderly people. However, the drastic cuts in the network may still leave some sub-post offices vulnerable to falling volumes of business, the National Audit Office (NAO) said. A report by the Government’s main spending watchdog concludes that the future of the remaining post offices cannot be “guaranteed” and urges the Department of Trade and Industry (DTI) to be alert to the problem. Post Office Limited is on course to shut about 2,500 urban post offices in the latest closure programme. However, the NAO said there was still some uncertainty as to whether the programme, backed by Pounds 210 million of public money, would achieve its long-term aim.

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UK post offices facing bleak future MP warns

The future for some post offices remained “bleak” despite a closure programme aimed at boosting their viability, a leading MP warned, following an official report into the business. The National Audit Office said the Government needed to be alert to falling volumes of business that could threaten sub post offices. Despite the closure of 2,500 branches there was uncertainty whether the programme, backed by £210 million of government money, would achieve its aim of producing a viable network, according to the study. Edward Leigh, chairman of the Commons Public Accounts Committee, said: “The future for some post offices is still bleak. I am concerned to learn that even after the programme of 2,500 closures in urban areas, and work to provide different kinds of financial services, many individual sub postmasters may still struggle to make enough profit to stay open.”

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NAO Report on the DTIs Financial Support for Post Offices

Contents:
The network of post offices in the UK 7
The viability of post offices 8
The financial position of Post Office Limited 9
The status of Post Office Limited 10
Providing services through the post office network 10
The scope and methodology of this report 11
Triangle consultants produced a report for the NAO which contributed to this final report.
P:LibraryPostalNAO DTI Financial Support for Post Offices.pdf
Printed copy: L13963

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National Audit Office report on UK post offices published

Postwatch welcomes the National Audit Office (NAO) report into the Department of Trade and Industry’s financial support for post offices. The report sets out the problems facing the post office network, and in particular, how changes to pension and benefit payments and customer shopping habits have put considerable financial pressures on many post offices. In this light, the NAO’s recommendation for continued business advice and assistance for subpostmasters is to be welcomed. The NAO confirms Postwatch’s concern that the introduction of pilots in rural areas by Post Office Ltd (POL) has thus far not progressed
sufficiently swiftly. In the coming months, POL needs to take significant
steps forward in exploring innovative delivery mechanisms that meet rural
customers’ needs.

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German Deutsche Post appeals cartel watchdog ruling

German postal services company Deutsche Post AG has appealed the ruling of the Federal Cartel Office (FCO), which forced it to offer competitors discounts for its mail dispatch services, the company said on February 22, 2005.

Deutsche Post strives to defend itself from the increased pressure by FCO and by some German politicians to give up its monopoly rights earlier than 2007 as scheduled.

The appeal is aimed at only preventing the immediate application of the decision and Deutsche Post expects the results of the appeal in the next few weeks, company CEO Klaus Zumwinkel said.

The company does not plan to hinder the opening of the market as demanded by the European Commission (EC), banking experts said.

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