Backbench Business

Debate between Gill Furniss and Neil Coyle

Thursday 17th November 2016 Westminster Hall

[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

It is a pleasure to serve under your chairmanship this afternoon, Mr Wilson. I congratulate my hon. Friend the Member for Luton North (Kelvin Hopkins) on securing this debate and all my hon. Friends who have spoken. I pay tribute to the many postal workers and the CWU who have brought many of the issues to our attention. As constituency MPs, we are all keen to ensure that the Post Office has a long-term future for the benefit of the communities we represent, and we want to know what the Government’s plans are for making the vision of a 21st century Post Office a reality.

It has practically become a cliché to say that post offices are at the heart of our communities, but it is a cliché because it is true. From city high streets and suburbs to villages up and down the country, the local post office is a landmark and an essential part of life. It is not just a place to buy stamps and send parcels; it provides a host of services. My hon. Friends the Members for Wirral West (Margaret Greenwood) and for Merthyr Tydfil and Rhymney (Gerald Jones) pointed out that, in rural areas, they can often be the only place where some services are available. It is no exaggeration to say that they are a lifeline.

I recognise that we are living in an ever-changing, increasingly digital world in which access to services online is undermining some of the Post Office’s traditional role. That is simply a fact of the times we live in. What concerns me is that the Government have apparently accepted the challenge as insurmountable and have embarked on a programme of managed decline, instead of looking at how we can make one of our proud national institutions fit for the 21st century.

My hon. Friend the Member for Wakefield (Mary Creagh) made a good point when she said that last year 50 Crown post offices—the larger branches, usually in prominent high street locations—were franchised and moved into the back of many WHSmith shops. There are plans to do the same with 59 more this year. That may seem like a pragmatic way of keeping post offices going through trying times, but the impact of that franchising on the quality of service provided and on the terms of employment offered makes me question the underlying rationale.

When Consumer Focus, as it then was, looked at the quality of service being provided by franchised branches in WHSmith a few years ago, it found that they consistently ranked below normal post office branches for queue times, the time taken for transactions at the counter, the number of counter positions staffed, customer services and advice on products. There were also big issues with disabled access, as many have said.

The Post Office’s own monitoring suggests there is no drop in the quality of services following franchising. However, as we have never seen its monitoring figures, I take that with a pinch of salt. The consumer organisation Which? is doing its own research on the matter, which it is hoping to publish in the next few weeks and which will no doubt make interesting reading for all of us.

When looking at what happens to jobs when branches are franchised, it is not hard to see why the quality of service drops.

[Neil Coyle]

Is there a question here not just about poorer service, but about taxpayer-funded poorer service? The lower pay usually offered by companies such as WHSmith is subsidised by taxpayers in tax credits and housing benefit. There have also been upfront subsidies, such as the £500,000 spent in Paisley and more than £100,000 being spent on Walworth Road. Other Members have referred to taxpayers’ money being used to tart up formerly dingy post offices before they were franchised.

[Gill Furniss]

My hon. Friend makes a very good point. This is not what taxpayers were expecting. We were looking at something for the future—a lot of taxpayers’ money to make this the gateway to a fully functioning Post Office service. We have heard representations in the Chamber today that that has not been the case.

Jobs with good terms and conditions are being replaced all too often with part-time, minimum wage roles. There is little to attract long-serving, experienced staff to transfer to a franchised branch. My hon. Friend the Member for Luton North made the good point that last year just 10 staff out of 400 in Crown offices being franchised chose TUPE; the rest took compromise agreements to leave. Those agreements cost the Post Office £13 million. So much for the Government working for everyone. What a waste of public money. My hon. Friend the Member for Hornsey and Wood Green (Catherine West) also mentioned that experienced staff are leaving in droves. That means that the quality that the Post Office stands for is undermined and a community asset is hollowed out—and make no mistake: these are community assets.

Franchising is done in the face of public opposition. Consultations on individual branches are exercises in public relations rather than proper public engagement. The branches targeted for franchising tend to be in more urban areas, disproportionately affecting the services available to already disadvantaged groups and harming the general health of our high streets.

The Post Office is clearly facing a crisis. My hon. Friend the Member for Harrow West (Mr Thomas) has an excellent article in the Daily Mirror laying all that out today. Since the Post Office was split from Royal Mail, it has struggled to keep its head above water. Traditional revenue streams are shrinking; plans to make it a “Front Office” for Government have disappeared into the ether; and an expansion of financial services has slipped off the agenda. One thousand jobs were lost last year, and another 2,000 are under threat this year.

The Government must take action now to halt the decline, and work with all those concerned to come up with a plan for a better future than the one currently on offer. Although I welcome the consultation document that has been published, I am concerned that it does not go far enough, and I urge the Minister to be bold in formulating a strategy for the future.

Will the Minister revisit the plans to make post offices the front office for Government that has been promised for so long? Post office revenues from Government services have fallen by 40% since 2010. Will she commit to expanding the financial services on offer? After all, the Post Office current account is not matched by either the children’s or business accounts. Surely that is an obvious starting point for expanding services. With the retreat of banks from the high street, the demand for a postal bank has never been greater. Will she explore how our post offices really can be the front office of Government and provide all the services that people require?

I ask the Minister with all sincerity whether she will call for a moratorium on any further franchising of Post Office branches until there has been proper engagement on what the future of the service will look like. This proud institution, its employees and the communities that it serves deserve better than a slow slide into oblivion.