Post Offices in Wales

(Limited Text - Ministerial Extracts only)

Tuesday 13th September 2016 Westminster Hall

[The Parliamentary Under-Secretary of State for Wales (Guto Bebb)]

It is a pleasure to serve under your chairmanship, Mr Hollobone, on this very warm September day. May I pay tribute to the hon. Member for Wrexham (Ian C. Lucas) for securing this debate? This is an important issue that affects all of us in Wales and in other parts of the country. We all recognise that post offices are an important part of civic life and provide a service that is invaluable to many of our constituents. May I also pay tribute to him for not being partisan in his opening comments? He acknowledged not only a rebellion between 2001 and 2010, when a significant number of post offices were closed, but that the reduction was unfortunate—and, indeed, possibly a mistake.

From a general perspective, it is important to point out that there has been significant stability in the post office network throughout the United Kingdom since 2010. This Government have committed to have 11,500 post offices within the post office network—a figure that has been maintained—with an investment of some £2 billion between 2010 and 2020. That is a significant public investment in the post office network. Wales has seen a slight decline of some 4% in post office numbers since 2010, compared with a decline of 34% between 2001 and 2010.

In general terms, the aspiration to protect the post office network is something on which this Government and the previous coalition Government have come up to the plate and delivered. I believe that the aspiration to carry on protecting the network in a Welsh and UK context is shared by Members on both sides of the Chamber today. The overall picture is one of significant investment and, it should be stated, one of a reduction in the subsidy required to maintain that network.

[Chris Evans]

I hear what the Minister is saying, and it is good news that we all share the same aspiration to save post offices where we can. When postmasters come to me and say that their post office is under threat, the major issue is business rates. Have the Government looked at any ways of reducing business rates specifically for post offices?

[Guto Bebb]

Clearly, business rates will vary from business to business, depending upon the area. Certainly business rates are an issue for many small businesses in the Welsh context, and the Wales Office is very happy to raise with the Welsh Government the need to ensure that we have a structure in place that is beneficial to small businesses.

There is a commitment to protect community post offices and, indeed, to invest in modernising them to ensure that they provide a service for local communities. It is worth pointing out that where community post offices are lost, they are quite often replaced by a mobile service. In my constituency of Aberconwy, a number of rural villages are now served by a mobile post office service.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

I will make only a brief intervention, as I know the Minister will want to answer the points raised by the hon. Member for Wrexham (Ian C. Lucas). In relation to the recent reforms, one issue that has arisen is the designation of sub-post offices, especially in some rural communities. For instance, we have a fantastic post office in Llangadog, but it has lost its community post office status, which means a loss of around £8,000 a year in grant. It has been designated a post office local because there is another shop in the village that could offer different services. The Post Office is playing businesses off against one another. Does the Minister agree that it is time we had a look at that and worked to strengthen those community post offices, giving them the support they need to expand the services they offer?

[Guto Bebb]

The hon. Gentleman raises an interesting point. It is difficult for me to comment on the particular situation in the village he mentioned, but in terms of the overall picture, the commitment to community post offices has been strong. For example, where a community post office is transferred to new ownership, the community status is maintained. I am more than happy to take representations in written format in relation to the particular village in question, but it is difficult for me to comment at this point in time.

Out of courtesy to the hon. Member for Wrexham, I should say that, although this is a debate about post offices in Wales, his comments were primarily about disability access in Wrexham. I understand the situation there. I was in Wrexham last Friday morning, speaking to a business professionals group, and Wrexham is in a very interesting situation. It is a thriving town in many ways, but there have been a number of retail developments in parts of Wrexham that have changed the centre of gravity on the high street.

I know Wrexham fairly well, having been born in the vicinity a long time ago. The changes on Wrexham high street are a concern to the hon. Gentleman; I fully appreciate that. I am also well aware, from reading the north Wales papers that he has highlighted, of the number of empty premises in Wrexham. It is important to note that the post office in Wrexham remains a Crown post office. Unlike the many agreements with WHSmith, the post office is run by Post Office members of staff. It is hosted by WHSmith but remains an independent Crown post office.

The hon. Gentleman’s summary of how the public consultation took place is similar to that provided by my officials. There was a six-week consultation period, which is par for the course when there is a possibility of moving a Crown post office to new premises. There must be a plan in place for accessibility. I understand that fewer than 10% of such moves have resulted in a post office facility being on the first floor, but the hon. Gentleman said that any such move is unacceptable.

It is important to note that the Post Office works within its own guidelines. That ensures that there is an assessment of accessibility, and I am more than happy to share those guidelines with the hon. Gentleman if that would be helpful. In addition to following the guidelines, it is necessary to consult and to ensure that people with disabilities have an opportunity to see whether the facilities work, and I understand that the hon. Gentleman attended when that opportunity was afforded. He highlighted that he felt ashamed of what he saw. I am surprised that that disappointment was not reflected in the consultation process. His concerns were not fed back in the wider consultation process.

The question of whether there should ever be a post office on a first floor has been highlighted, and the accessibility issue includes accessibility in terms of the law and the guidelines. The Post Office assures me that on both counts that is the situation in Wrexham. I take fully on board the comments of the hon. Gentleman, but highlight the fact that the process has been followed in accordance with the Post Office’s guidelines and ensuring accessibility. The hon. Gentleman is clearly of the view that that is unacceptable, but his comments have been heard by the Post Office today.

[Ian C. Lucas]

I objected to the proposal. I visited the store the day before the post office was to open, which was after the decision had been made. Only at that point did I see what the arrangements were because they had not been constructed at the time of my initial objection. That is when I was ashamed of what I saw. It was the first time I had seen them.

[Guto Bebb]

I am grateful for that clarity and, again, I have no doubt that the hon. Gentleman’s comments will be noted.

I understand that since the post office relocated on 18 August, seven customer satisfaction feedback forms have been completed. All have been positive and, again, this issue has not been raised. In addition, it is worth pointing out that the early indications are that footfall at the new post office in Wrexham has increased and customer usage of the facility has increased. I stress that it has been open for only a month and I fully understand that these are early days. The hon. Gentleman still has his concerns but the initial feedback seems to be constructive and positive. I am not in any way ignoring the real concerns that he has raised, but the initial feedback seems to be quite positive.

I should highlight the fact that there is an alternative option in the post office in Wrexham; if someone is unable to access to the first floor facilities, there is a portable till point on the ground floor. That service is made available when any post office counter is on the first floor. I understand that during the month the post office has been operating from WHSmith in Wrexham, that portable facility has not been used, but it would be manned by post office counter staff from upstairs, not by anyone working for WHSmith downstairs. The service would be equivalent to that available upstairs, as would the training required.

It is important to have debates on situations such as that in Wrexham. It is crucial that a service provided to the general public and our electors by the Government with taxpayers’ support is debated in Westminster. We all have our concerns when we hear of post offices being relocated. I had a similar situation in the summer when the Crown post office in Llandudno was relocated to WHSmith, but on the ground floor.

I think I am right in saying that the main concern in Wrexham is not whether the service is of equivalent value or whether the same service is available. The real concern is accessibility. All I can offer the hon. Gentleman is my assurance that the Post Office has operated under its own guidelines and within the law. However, this opportunity to express some of his concerns and those raised by some of his constituents is the right use of this Chamber and ensures that the Post Office hears those concerns.

I turn to other comments that have been made. I emphasise that in general the Post Office is a success story in the Welsh context. We have an obligation to ensure that those services continue at a level that ensures that the needs of people in all parts of Wales are dealt with. It is worth pointing out that 90% of the post offices in Wales that are eligible for the modernisation programme have been through that process. That is a high and positive percentage. There are individual cases that cause concern to Members, but it is fair to say that the overall position is positive and we should be proud of it.

In addition, we should acknowledge the significant work that the Post Office has done to ensure that the provision of services is as good as it has been during a period when the subsidy paid by the Government has reduced considerably. We have a leaner, more efficient and more effective Post Office, yet there has been only a very small fall in the number of post offices operating in Wales since 2010.

I can offer no significant assurance to the hon. Gentleman about the situation in Wrexham, but I am sure we can share the Post Office guidelines with him. He can then discuss the provision in Wrexham and communicate the basis on which the process was undertaken to his constituents who are interested, and in some cases distressed, by the changes.