Post Office

Harriett Baldwin Excerpts

Wednesday 27th November 2013 Commons Chamber

[Jo Swinson]

I welcome that contribution and those words of welcome from the Chair of the Select Committee. He is right that this Government and previous Governments have faced the challenge of how a much-loved institution reforms and modernises for a very different retail environment from that of some decades ago. That is not necessarily always an easy process. He asks about the perception of the future viability of the network. The range of different services for which the Post Office can bid—not just Government services but the huge opportunities in the parcels market and financial services—are very significant. We must bear in mind the 10-year intra-business agreement between Royal Mail and the Post Office. The chief executive of the Royal Mail, Moya Greene, has said that it would be unthinkable for there not to be that commercial relationship between the two companies, so I hope that hon. Members will also respect that and not indulge in the scaremongering that has gone on in some corners about the future of the Post Office following Royal Mail privatisation.

[Harriett Baldwin (West Worcestershire) (Con)]

Mr Speaker, have you ever heard a more grudging contribution from the Labour party, after the closure of 7,346 post offices? I thank the Minister on behalf of my constituents in West Worcestershire. Will any of the money that she has announced today help the Post Office to modernise its computer system for my sub-postmasters and, to reflect rural concerns, update the algorithm that allows post offices to hold cash ?

[Jo Swinson]

I am happy to look in more detail at some of the specific technological issues that the hon. Lady raises. The money we are announcing today is for a continuation of the network subsidy for the three years and to invest in the future network transformation programme. Of course, we must ensure that the central IT systems, managing a network of nearly 12,000 retail outlets, are also fit for the 21st century. I will happily get back to her with further details.