Post Office

John Pugh Excerpts

Wednesday 27th November 2013 Commons Chamber

[Jo Swinson]

The numbers in the post office network are at their most stable for decades and, as I say, the facts speak for themselves. Government services are an important part of post office income, but they are not the only part, because that is not the way to achieve a secure future for post offices. They need a diverse range of income streams, including mails and financial services.

As for where the Government work is, we have heard today that the post office card account, or its successor, will continue through the post office network, which is welcome. Last year, the Post Office competed for the framework contract for the Driver and Vehicle Licensing Agency and won, and that framework contract will allow further contracts to be put through, as indeed was the case with the UK Passport Service work earlier this year.

I am not for a second trying to suggest that things are easy for sub-postmasters. Things are not easy, and they have not been easy, in these difficult economic times. We recognise that, which is why we have enhanced the packages available to make them more attractive and make sure that sub-postmasters have more opportunity either to make the choice if they wish to leave the network or enable them to continue and invest in their business, get more customers through the door and build a thriving retail business.

[John Pugh (Southport) (LD)]

In welcoming the statement, may I draw the Minister’s attention to the Crown post office network, and the fact that those post offices selected for closure are not necessarily, as is the case with mine in Southport, making the most losses? Will she tell the House what will happen if WH Smith, like other high street firms, goes out of business?

[Jo Swinson]

The selection from the Crown network is based on a range of criteria but, in every single case in which we are seeking to franchise, we are talking about Crown post offices that have made losses. I understand that in Southport, every £1 of income cost £1.75. People will accept that that is not sustainable. That said, it is important that we make sure that those services continue. I encourage my hon. Friend to ensure that he is involved in the consultation on the right location for continuing that post office service, to make sure that his constituents still have access to the full range of post office services.