Tag: Networks

Consultation Starts On Changes To Post Office Network – Post Office Ltd announces plans for the Northern and Western Isles

Post Office Ltd today opened a six-week local public consultation on its Area Plan for the Northern and Western Isles.

In line with the criteria and factors set by the UK Government in its response document, DTI, The Post Office Network, Government Response to Public Consultation in May 2007 (www.dti.gov.uk/consultations/page36024.html) – the Area Plan for the islands proposes future provision of Post Office® services through a total network of 113 branches across the area, resulting in the closure of 19 existing branches.

Post Office Ltd proposes to close 13 branches in the Western isles, mainly on the island of Lewis and 6 branches in Orkney and Shetland.

Under the proposals, 97 pct of the area’s population will either see no change to their nearest branch, or will remain within one mile (by road distance) of an alternative branch.

The detailed Area Plan proposal for the Northern and Western Isles is now available.

The UK Government has already undertaken a 12 week national consultation before reaching a decision to reduce the UK wide network of Post Office® branches by up to 2500 from its current level of over 14000 while continuing to provide funding to support a more sustainable network in the future. The proposals now published support the national accessibility criteria introduced by the UK Government.

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The Role Of European Post Offices

Noted this week is Richard Owen’s observations on “The Italian Perspective” in the Times.

Owen like myself, feels some frustration in the lack of thought when it came to revolutionising the UK’s postal network and, compared to the Italian model, postively backward.

The trouble is, attempts to make the most of the internet age and diversify in terms of products, has all been too little and too late for the Post Office. Declining mail volumes and the switch to online payments for road tax and direct state benefits have hit post offices very hard in a relatively short space of time. I cannot argue with the reasoning behind closures – they cost a fortune to maintain and many run at a loss, but we’re closing them because the network has simply bumbled along with insufficent thought to their long-term future. We also seem to be putting all our trust in a digital age when many areas of the UK (particularly rural) have little or no internet connectivity.

This all reminds me of a friend who lives not far away, in a more remote area of France. He often experiences complete power cuts – sometimes for several hours. Television reception is poor, the location impossible for a good line of sight for satellite reception, and entirely at the mercy of a local farmer who kindly erected a kind of makeshift booster mast made out of unwanted farming implements. It stands, somewhat embarassed, amongst a flock of bemused sheep. It works – when the weather is reasonable.
For many, a post office email service would be a lifeline, and use of the internet a real bonus. Cash machines too are few and far between and a post office network that was hooked into all the major banks would transform the role of post offices. Instead, the British see them as places to buy stamps and not much else.

Post offices have traditionally been community hubs and actually, whilst the technology may have changed, there is no reason why they cannot continue to be – and thrive.

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New Russian Post CEO targets modernisation as losses rise

The new head of Russian Post, Andrej Kazmin, has unveiled a package of measures to modernise the vast postal service and make it more competitive following increased losses last year. But privatisation is not on the agenda.

Priorities will be to offer a wide range of services, to improve the profitability and quality of mail services, to expand financial services and to modernise the IT and infrastructure, Kazmin said at a two-day high-level meeting of the Russian Ministry of Communications and Information Technologies earlier this month.

Russian Post said it increased mail volumes by 14 pct and parcel volumes by 25 pct last year. Its EMS express shipment volumes increased 42 pct in comparison with express market growth of 37 pct. The company’s 2007 revenues increased by 23 pct due to the higher volumes. However, Russian Post ended 2007 with a loss of RUB 5.8 billion (EUR 158.94 million) compared to a RUB 4 billion deficit (EUR 109.61 million) in 2006.

According to Kazmin, Russian Post’s main goals for 2008 include improving the enterprise’s economic efficiency, providing standard delivery of correspondence and freight to and from any part of the Russian Federation at available tariff rates, establishing modern infrastructure and developing financial services within the postal service system.

In terms of the growth factors and prospects for this year, IT is seen as an important factor for the development of postal services. In 2007, Russian Post extended computer technology with a 35 pct rise in the number of terminals at post offices. In addition, it opened over 3,000 Internet public access outlets increasing their total number to 23,000, the Russian Post said.

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Opinions over GBP 4.5m Royal Mail bonuses

Royal Mail bosses received more than GBP 4.5 million in bonuses last year – enough to prevent the closure of dozens of post offices.

Royal Mail accounts released yesterday show that Adam Crozier, the chief executive, was paid GBP 1.3 million in salaries and bonuses in the financial year 2006/07.

Overall, the company’s board received GBP 3.1million in “long-term incentive plans” on top of their GBP 4.1 million remuneration, of which GBP 2.5 million was salaries and the rest other bonuses.

The payouts prompted unions to ask why senior executives were getting such large bonuses while post offices were being closed and sub-postmasters were losing their jobs.

Earlier this week, Royal Mail announced a six-week consultation on plans to close 169 post offices in London by the summer. The move comes after a string of closures in rural areas.

Critics pointed out that the bonus figure was equivalent to a GBP 26,000 subsidy for each London branch facing closure.

Campaigners have said that depriving villages of rural post offices will cut a vital lifeline, particularly for elderly people.

But the Government says many offices are not profitable enough to justify a large subsidy from the taxpayer.

A spokesman for the Post Office said: “This is not simply about saving running costs – the problem facing Post Office branches is that there are too many chasing too few customers and too little income.”

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Post offices in Parliament to escape Royal Mail axe (UK)

All three post offices in the Houses of Parliament are to escape the mass cull of London branches, the Standard can reveal.

The Royal Mail has provoked outrage after announcing plans to axe 169 post offices in the City.

But it has decided to exempt the offices in the Commons despite them being separated by only a few 100 metres.

Liberal Democrat MP Tom Brake said the Royal Mail should look again at its plans.

He said: “What is good for the goose should be good for the gander. I cannot fathom why, when MPs have three post offices within 100 metres of each other, and some people have none within a kilometre of them, the latter were shut.

He added: “It seems as though Members’ Priority Service has won the day again.”

A fifth of the London network will be axed by this summer.

A spokesman for the Royal Mail said the branches in Parliament were crown post offices and were part of the directly-managed national network.

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