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Press Release

Government risking post office future

19 September 2011

Responding to Ed Davey's speech to Lib Dem conference today (Monday) in which he said "I want the Post Office to become the "Front Office" for government", the Communication Workers Union accuses the government of betraying the post office network by undermining its revenue and pursuing a privatisation agenda. CWU also expresses concern at the announced consultation on mutualisation of the post office for being a distraction to the real issues facing the network.

CWU general secretary Billy Hayes said: "The government is trying to wash its hands of the post office by pursuing an ideological agenda of privatisation. This is jeopardising the future of the postal service, not securing it.

"Labour's record on post offices wasn't great but what the Lib Dems are doing is far worse – they're pulling the rug away from central post office business plans and cutting key services and revenue streams such as the 'Green Giros' contract. Their new post office 'Locals' model is a blatant downgrading operation which will force 2,000 sub post offices to close and leave rural areas in particular without access to a range of services. The model simply isn't financially viable for many subpostmasters as it takes away their core tier payment and puts them on variable pay, which will eventually lead to more closures.

"Mutualisation won't keep post office counters open. The Post Office needs to be sustainable before it can be mutualised and that requires real business solutions and guaranteed funding. The sad fact is that dozens of post offices have closed under this government because contracts and services have been taken away by government, undermining revenues and leaving an uncertain future.

"Far from making the Post Office the “Front Office” for government, Ed Davey and his government friends are pulling government work and bringing in a 'Locals' model which will not be able to support this vision or the development of financial services. If the government abandons the privatisation agenda then the Post Office's future could be secured as part of modernised Royal Mail. Breaking the Post Office away from Royal Mail is an experiment which no other country has risked."



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Communication Workers Union

Communication Workers Union

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