Second Hammer Blow For Post Offices Expected (West Worcestershire Liberal Democrats)

West Worcestershire Liberal Democrats <contact.us@westworcslibdems.org.uk>

Second Hammer Blow For Post Offices Expected

November 3, 2008 3:55 PM

Local Parliamentary Candidate, Richard Burt today claimed that Government will deliver another hammer blow to the Post Office network following last week's local announcement on post office closures.

He said ministers were set to make a delayed announcement after the Glenrothes by-election, awarding the new Post Office Card Account contract to PayPoint.

Mr Burt, who campaigned to save local post offices, said: "Post Office Limited will lose their core banking business to PayPoint when the announcement is made.

"This will be a second hammer blow for the post office network following recent forced closures.

"Sub-postmasters tell me that up to 25% of their income is generated from the Post Office Card Account. Without this income thousands more branches across the country could be forced out of business.

"Over four million customers use POCA, with 3.7million receiving their benefits and pensions at their local post office counter.

"Most customers in rural areas do not have access to a high street bank or to a PayPoint.

"I spoke to one resident who currently travels seventeen miles by bus to her nearest PayPoint for her TV licence. How on earth will rural customers cope if they cannot access their benefits or pensions at their local post office?

"Just five years ago, Government described POCA as the "cornerstone" of the Post Office's new banking products. Now, in a move of breathtaking hypocrisy, they have decided to award the contract to the cheapest outside bidder.

"The Royal Mail Group's half-yearly results showed that Post Office Limited has generated a profit in the first half of 2008/9, reversing a long term loss-making trend.

"This surely suggests that the POCA is a financially viable service sitting within post offices themselves. Once again, the best interests of dependent customers will be betrayed for the bottom line.

"Giving the contract to PayPoint could prove to be the final nail in the coffin for even more local post offices."