Post Office Network

Cheryl Gillan Excerpts

Thursday 25th April 2019 Westminster Hall

[Dame Cheryl Gillan (in the Chair)]

Before we start the debate, I remind colleagues that the Post Office group litigation concerning in particular sub-postmasters and their contractual relationships with the Post Office is currently before the courts. In accordance with the House’s sub judice resolution, reference should not be made in the debate to cases that are currently before the courts. I will allow discussion of the wider issues relating to the sustainability of the post office network—that is permissible—but I remind Members that I will intervene if I think they are overstepping the mark.

[Marion Fellows (Motherwell and Wishaw) (SNP)]

I beg to move,

That this House has considered the sustainability of the Post Office network.

It is a real pleasure to serve under your chairmanship yet again, Dame Cheryl. I thank the Backbench Business Committee for granting this important debate on the sustainability of the post office network and the many Members from all parts of the House who supported my application for it. I also thank my Hansard Society scholar intern, Rebecca Orbach, who worked so effectively in organising my application.

At the outset, I want to recognise and thank the sub-postmasters in my constituency, and across Scotland and the rest of the United Kingdom, who work hard in difficult circumstances to serve our communities. I also want to acknowledge a hard-working sub-postmaster—they know who they are—for working across all parties to seek support for the future of post offices. Friends in the National Federation of SubPostmasters and the Communication Workers Union also deserve our recognition for their fight for the preservation of the post office network. Finally, I thank all those who have attended today’s debate. I am sure that Members will agree that the post office is a recognised and important part of our respective communities and an institution that is widely recognised and respected across Scotland and the rest of the United Kingdom.

The post office is a valued public asset, as many of our constituents have made us aware. From the reaction of people in my constituency to the Crown branch closure in the centre of Motherwell and the temporary closure of the branch in the centre of Wishaw, I know that people and businesses not only use, but rely on their post offices and the services they provide. Their importance has underpinned the strong opposition in communities to the franchising of Crown branches and the closure of franchised branches due to poor postmaster pay.

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[Several hon. Members rose—]

[Dame Cheryl Gillan (in the Chair)]

Order. There are nine speakers on my list, including the Front Benchers. I am not minded to impose any time limit at this stage, but I wanted everybody to know the situation.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

It is an absolute pleasure to serve under your chairmanship, Dame Cheryl. I congratulate the hon. Member for Motherwell and Wishaw (Marion Fellows) on securing what is undoubtedly a very important debate.

I know from my constituents how important the post office network is to rural communities such as those that I represent in the Scottish borders. When the post office in Eyemouth closed temporarily last year, I received a huge number of complaints, letters and emails from residents worried about how they would access their benefits, pensions and other postal services. In fact, the reaction was as strong as the opposition to losing a local bank branch or another public service such as a local library. That desire to protect the local post office network needs to be put to good use. Local people certainly have a role to play in supporting their post offices, but I wonder how many people understand how postmasters earn a living. Perhaps we all need to do a better job of communicating that we all must use our post offices and spend money there as often as we can to ensure their survival.

I absolutely agree that the post office network provides an invaluable service, which needs to be protected. I find it hugely concerning that the National Federation of SubPostmasters has found that one in five sub-postmasters is considering closing or downsizing in the near future. What should our reaction and response be to that, and how should the Government react?

Tim McCormack, who lives in Coldstream in my constituency, ran the post office in Duns for a number of years. He has been a very vocal critic of the network transformation project, and is calling for radical reform. There is clearly a need to look again at whether the current model has put post offices on a sustainable footing for the future. I urge the Minister and the Government to look closely at the issue. Do we need to increase the network subsidy? Can the Government do more to support postmasters who provide over-the-counter services on their behalf? For example, the Post Office’s contract with the Department for Work and Pensions to provide the Post Office card account runs out in 2021. Will the Minister raise with Government colleagues the income and footfall that such services provide for postmasters, and press for the contract to be renewed for a further period?

I note your comments, Dame Cheryl, at the start of the debate about ongoing legal action, which is an important issue. I will not go into that case, but it is important that the Government consider the possible outcomes of that litigation, and how that might impact on the sustainability of the post office network. As the hon. Member for Motherwell and Wishaw indicated, as banks have closed, a number of banking services have been transferred to the post office network. There would clearly be a big impact for many communities who are now completely dependent on the post office network if that network was not on the same footing as it is today.

Some have argued that the post office network in Scotland should be devolved to the Scottish Government and the Scottish Parliament. That is not something I support. That would cause all sorts of added costs, and would not in itself solve the problem. Of course, it is already open to the Scottish Government to provide financial assistance to post offices for providing non-postal services, so some extra support could be provided by Holyrood if—[Interruption.] Dame Cheryl, is this not telling? We are talking about a very serious issue here, which affects all our constituents, and all a group of SNP Members can do is to barrack and shout at someone who is trying to provide a constructive solution.

[Dame Cheryl Gillan (in the Chair)]

Order. I am not going to allow any barracking. This will be a civilised debate under my chairmanship.

[John Lamont]

Thank you, Dame Cheryl. I am very grateful for your intervention. I think it is appropriate that we conduct ourselves in a civilised manner, and I am happy to do that.

Notwithstanding my concerns about the post office network, it is important to put the issue in context. Despite a significant reduction in the network subsidy since 2011, across Scotland we have lost just over 2% of post offices, which is roughly the same loss as has been experienced in England. In my constituency, we have lost two of 46 post offices. It is not the case that the network is falling apart.

The Post Office has gone from making a £120 million loss in 2012 to becoming profitable again, which is undoubtedly a good thing. I also very much welcome the recent announcement from the Post Office that it is increasing the amount of money it pays postmasters for carrying out banking transactions. That is clearly long overdue; the issue has long been a matter of complaint among postmasters in my constituency in the Scottish borders. I end by reiterating the importance of the post office network to rural communities.