MPs suggest Crown Post Offices may need financial support
A new report from the Trade and Industry Select Committee has called on the Government to be prepared to offer short-term financial support to Crown Post Offices.
The call has delighted the postal workers union the CWU, but is unlikely to be welcomed by Ministers who have previously insisted that no extra help is necessary.
The committee said that it had been “surprised to learn” that the Post Office was reviewing the future of directly managed branches (Crown Post Offices) after a recent review into sub post offices had identified some for closure on the assumption that customers could use Crown Post Offices.
But, it was relieved to learn that any large scale closure or sell-off of the directly managed post offices was not on the cards – despite speculation to the contrary in the press. However, the MPs said that they do not agree that 30 planned closures is “an insignificant number”.
The MPs warn that the Post Office’s plan to develop a sustainable directly managed network within five years is “challenging” and that success will rely on the branches being converted to franchise operations much quicker than has been achieved over the past ten years.
It calls on the Government to be prepared to provide short-term financial support to the reforms if it proves necessary.
The Government is also urged to pay the full economic price for the provision of such services as benefit payments and vehicle licensing – upon which the Post Office currently often makes a loss. This loss has been exacerbated by plans to move to direct payments of benefits. The MPs said: “The Government cannot continue to profess its commitment to a viable post office network for the future while at the same time paying the Post Office less than the going rate for the job.”
The report was warmly welcomed by the CWU’s general secretary, Billy Hayes. He said: “Government support for a much-loved public service is absolutely essential if the Crown office network is to be maintained at its current level. It is quite clear that more closures and privatisations are inevitable unless ministers are prepared to take responsibility for services that are integral to communities up and down the country.”
He also added: “It is simply unacceptable for the Government to say Crown offices have to operate on a purely commercial basis, and then on the other hand expect them to provide services that are loss-making. This baffling and contradictory position poses a very real threat to the post office network’s future.”
