Member News
By Michael Courtney - 10th December 2009
New opportunities were discussed earlier this week at a meeting of the all-party parliamentary group on Post Offices.
The meeting was attended by the National Federation of Sub Postmasters (NFSP), the national trade union recognised by Post Office Ltd. (POL) to represent subpostmasters.
The meeting, held under Chatham House rules, was convened to review the government's response to the Business, Innovation and Skills Committee (BISC) July 2009 report Post Offices – Securing Their Future.
In the response, the government agreed with the committee on the "important role of Post Offices as an instrument of social cohesion."
Great controversy surrounded the government's network change programme which resulted in 2,500 Post Office closures.
NFSP feels strongly that the present network of 12,000 Post Office locations should be preserved as further reductions could "undermine its geographical reach and compromise the ability to compete effectively for contracts."
The government response stated "the government has made clear that it will not support a further closure programme."
However, the NFSP urges all strands of government to "take urgent action to safeguard the future of the Post Office network."
Indeed, significant challenges are faced by POL from the advent of Direct Debit schemes, increasing use of internet and digital banking, withdrawal of many government services and even restrictions by some high street banks on customers' access to accounts at post offices, to name a few.
A March 2009 NFSP survey found that "since the implementation of Network Change…77 per cent of sub-postmasters have seen increased overheads… new Post Office products are yielding minimal or no income… and over the last three years, subpostmasters' personal drawings have dropped 9 per cent to an average of just £866 per month."
New opportunities envisaged by the NFSP involve the creation of a Postbank. This would be a "state-backed bank through the post office network." This could "foster a return to a savings culture in the UK" and would "preferably be achieved by transferring National Savings and Investments back into POL from the Treasury."
The Business and Enterprise Committee says "the government should ensure that the banks in which the public is a shareholder provide services through the Post Offices."
Additional suggestions on future endeavours involve community services. "Examples include a prescription collection service and a tourist information office."
Presently, POL is running a pilot programme, "Validate", a service aimed to "reduce benefit error and fraud for local authorities."
Dods Parliamentary Communications Ltd