Rural Postal Services: Sustainability

Patricia Gibson Excerpts

Wednesday 25th October 2023 Westminster Hall

[Jamie Stone]

Again, a very good intervention; I completely agree. I have described a success story, for which I thank the Post Office for seeing that it happened. Now I turn to a more difficult situation. On the north coast of Sutherland, in my constituency, there are two local post offices at villages called Melvich and Bettyhill. They are now worried about their viability.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

The hon. Gentleman will be aware that the previous Labour Government stripped post offices of many of their unique services and the current Government have not supported post offices as they should have done during the recent difficult times. Does he agree that that has made the sustainability of post offices all the more challenging, particularly in rural areas such as Brodick on the Isle of Arran, which is now facing the closure of its post office?

[Jamie Stone]

The point is well made. I will give this specific detail: until now, Royal Mail, which is a separate organisation, has paid each of the two post offices I described to have a parcel and letter sorting facility at the back of their shops. Technically, that is termed a scale payment delivery office or SPDO, which is where posties go to sort the letters and parcels, to avail themselves of toilet facilities and, indeed, to have a sit-down to eat what we in the highlands would call their piece at lunchtime. I have been told that those contracts are due to end this coming January, leaving the shops without the funding for an SPDO. In the case of Bettyhill, the shop will lose a significant sum of money. It means that posties will have to meet in the public car park to sort the mail and swap parcels between vans. That is a pretty unpleasant prospect when we think about some of the weather we have had recently in my constituency.

--- Later in debate ---

[Patricia Gibson]

Does the Minister think there is a case for giving greater UK Government support to rural post offices, which, by definition, cannot compete on footfall because they serve smaller populations, so that our island and rural communities can keep hold of our post offices, even during these difficult times?

[Kevin Hollinrake]

As I said earlier, I am bound to stand up for rural areas, just like the hon. Lady and others in this debate, but there is a limit to taxpayers’ money, and we are talking about £2.5 billion over 10 years and significant funding requirements now, in terms of the needs of both the network and the compensation schemes, which I will refer to in a second. We do not have a bottomless pit of money. However, there are other measures we can take, which I will mention, to make the Post Office sustainable and make individual branches profitable, which is the key to this conversation.

Returning to specific branches, I am glad that the hon. Member for Caithness, Sutherland and Easter Ross referenced the Balintore post office, which reopened at the Seaboard Memorial Hall last year, thanks to the efforts of the post office and the hall’s committee, and indeed Maureen, the postmaster. However, we are in no way trying to pretend that the rural network is not facing challenges—not at all. As I have said before, the Post Office works with communities to ensure that services are maintained, and the Government’s access criteria ensure that however the network changes, services remain within local reach of all citizens.

My hon. Friend the Member for Havant (Alan Mak) rightly references post boxes, which are another key part of this matter. Royal Mail is there to ensure that there is a post box within half a mile of the premises of at least 98% of users of postal services. If that is not the case, I am very happy to engage with my hon. Friend to get answers for him and change in his local area.

My hon. Friend the Member for Penrith and The Border (Dr Hudson) challenges the Government on what more we can do to ensure the sustainability of post offices. It is important we take into account that many of the challenges facing post offices are because of the changes in consumer habits—just like the rest of the high street, which is seeing those changes too. That is also related to Government services such as driving licences, passports and other similar services, mentioned by the hon. Member for Motherwell and Wishaw (Marion Fellows), who does a fantastic job as chair of the all-party parliamentary group on post offices. Many consumers now want to access such services online, which can be done very efficiently. I do not think it is for us to dictate to those citizens how they access those kinds of services if they can do so more quickly and efficiently online. That would be the wrong thing to do.