Post Office Network

Debate between Jesse Norman and Nia Griffith

Tuesday 2nd November 2010 Westminster Hall

[Nia Griffith]

I have just explained why we put in money to ensure that 7,500 branches, in addition to the 4,000 commercially viable ones, were in fact kept open. The crucial issue we all have to address, and on which we need answers from the Minister, is how to make those post offices viable so that, in the words of some of the hon. Gentleman’s colleagues, the subsidy is not needed for ever and at the end of the day there is a viable business that can survive, and provide the network that we all want.

[Jesse Norman]

rose—

[Nia Griffith]

May I finish, please?

The Labour Government undertook to develop a successor to the Post Office card account, and the contract was awarded to the Post Office. We need specific details from this Government about their vision for such accounts and how their scope could be broadened. We also prepared the way for increasing the range of banking services to be made available through local post offices. Hon. Members might remember that we instigated a consultation, and they might have encouraged their constituents to take part in that last February, and to respond to a survey about the type of banking services they would like to be able to access at their local post office. How do the Government intend to take forward that work, and what specific plans do they have to extend and promote banking services through the post office network? It is not simply a question of making services available at post offices; we cannot turn the clocks back.

In some areas, as few as 7% of women over the age of 65 in lower-income groups have regular access to the internet, but that figure rises to almost 100% among younger men on middle and high incomes, many of whom want and expect to be able to access services online. They are likely, for example, to renew their driving licences at the click of a mouse, rather than in their local post office, even when they might physically call in to the shop that houses the post office to buy snacks or drinks, or to rent a DVD.

In terms of the sub-postmasters’ vision of an enhanced role for post offices as the front-line provider of an expanded range of Government services, what specific plans do the Government have to make that happen? Fine words and lofty aspirations are not enough. Even the straightforward availability of services might not in itself be sufficient. Even the plentiful good will towards post offices that exists in our communities is unlikely, on its own, to increase footfall. How exactly do the Government plan to turn that vision into a queue of real people choosing to carry out business transactions at post office counters?

Local councils can also play a role, but some councils have not always been supportive of the post office network. For example, a couple of years ago, we found hidden away in the small print on the back of council tax demands from my county council plans to cease accepting payments via the post office network. I persuaded councillors to allow representatives of local sub-postmasters to address the full council, and those plans were dropped.

To sum up, we want to hear specifics from the Minister. We want an explicit commitment to protect the inter-business agreement between Royal Mail and Post Office Ltd and to hear specific plans for increased Government use of post offices and developing more business for them. I look forward to hearing the Minister’s answers.