Future of the Post Office

Debate between Gareth Thomas and Tim Farron

Wednesday 13th November 2024 Commons Chamber

[Gareth Thomas]

My hon. Friend makes a crucial point about the future of the Post Office—we must get right the technology that sub-postmasters are expected to use. There were serious problems and delays in the previous Government’s efforts to find a replacement for Horizon. We have had to bring in additional consultants to work with the Post Office to bring forward a proper replacement. More generally, on Fujitsu, we expect the Horizon inquiry to bring forward a view about the accountability of particular organisations and particular individuals. We will look at what Sir Wyn’s inquiry recommends and then make appropriate decisions on those issues.

[Tim Farron (Westmorland and Lonsdale) (LD)]

We are deeply alarmed that Kendal Crown post office appears on this list. Three years ago, the previous Government and the previous administration of Post Office Ltd also threatened Kendal Crown post office with closure. We won our campaign to save it, in part because Post Office Ltd conceded that there was not enough space in WH Smith in Kendal to accommodate the post office. That has not changed. Royal Mail may also lose its Kendal sorting office as a consequence of the closure. That has not changed either. What has changed is that two more high street banks—Halifax and Lloyds—have deserted Kendal town centre on the basis, they claim, that the post office down the road will be able to take up the slack. Is this not the time to give guarantees to post offices such as the one in Kendal that they will remain a Crown office for the foreseeable future to support our town and our economy?

[Gareth Thomas]

I say gently to the hon. Member that I absolutely recognise his point about the role that bank branches play in communities such as Kendal and about their retreat from our high streets. The banks have a responsibility to work with the Post Office to make sure that communities can have access to the banking services that they need, particularly those offered through the post office. That is one reason why we want to significantly expand the number of banking hubs. On the hon. Member’s point about the post office in Kendal, I simply underline the fact that no decisions have been made about Kendal or any other individual directly managed branch. We expect the Post Office to talk to sub-postmasters, trade unions and other stakeholders about this process, but genuinely I say to him that there are significant additional costs associated with the directly managed branches and it is right that the Post Office looks at that as well.