Tag: UK

Distinct products and unique services could safeguard the future of the threatened post office network.

That was the view of about 20 of Moray’s sub-postmasters and postmistresses who met last night to discuss the latest challenges facing their businesses.

It is not known how many in Scotland will be affected, but estimates range from 300 to 600.

Trade and Industry Secretary Alistair Darling said in December the cuts were needed because of losses of GBP4million a week.

Last night, those in Moray said some of the area’s post offices may no longer be viable, and that will be due in part to Government policy.

A sub-postmaster from Craigellachie said constant decisions to share once-unique post office services with other outlets was crippling the service.

Announcing the proposal, Mr Darling promised a GBP1.7billion package for the period up to 2011, including compensation, thought to be about GBP70,000 each, for sub-post office proprietors ordered to close.

There will also be an on-going subsidy of GBP150million a year to maintain a network of the remaining 12,000 main and sub-post offices.

But some at the meeting last night said they did not want a subsidy – they wanted to be part of a vibrant business that sustained itself.

They also expressed their desire to see the GBP1.7billion package spent wisely.

Former Fochabers sub-postmaster Paul McBain said: “They need to spend that money looking for business that is going to keep the post office vibrant.”

Opposition parties have rounded on the UK government over Royal Mail’s deepening financial crisis, as an exodus of big corporate clients heaped pressure on the firm to tackle its GBP5.6bn pensions deficit.

BT dropped Royal Mail in favour of TNT Post for a GBP90m contract, with UK energy supplier Centrica and the Carphone Warehouse quickly following suit – both choosing private suppliers.

In total Royal Mail lost out on contracts worth nearly GBP150m.

The Department for Work and Pensions (DWP) became the first high profile department to turn its back on the Royal Mail and has since said it would not rule out dropping the firm for future contracts.

Alan Duncan, Conservative shadow trade, industry and energy secretary, quizzed the government in parliament over its failure to deal with the situation.

The government-owned former monopoly has struggled to retain business after postal services were fully opened to competition last year. Since then it’s lost more than 10% of the mail-handling market to private firms.