News story

21 November 2000

MINISTER OFFERS LITTLE COMFORT ON POST OFFICE CLOSURES

DTI Minister Alan Johnson today offered little prospect of cash support for struggling rural post offices threatened with the closure. The Minister was responding to a debate initiated by Northavon MP Steve Webb on the subject of Post Office closures. The Lib Dem MP began by recognising that the steady decline of the Post Office Network had been going on for more than twenty years. But he added that the Government’s decision to force people to receive their benefits directly into bank accounts had accelerated that decline and had meant that retiring postmasters could often find no-one who wanted to buy their business. Almost 300 offices had closed in the first half of this year, and there was no sign of any slowing in the rate of closures. Steve Webb welcomed a number of the Government’s longer term initiatives designed to support Post Offices, but said that the network would suffer further serious cuts unless more urgent action was taken. In particular, the Northavon MP pressed the minister about the £270 million of subsidy which the Government had promised in support of struggling sub post offices.

In reply, the Minister said that the Government was currently considering how best to deliver those subsidies and that no decision would be taken on this until Autumn 2001, with the first payments probably not being made until 2003. The Minister said that the Government had a long-term strategy for Post Offices and it was unfair to criticise the Government for the fact that it was failing to achieve short-term results.

Steve Webb also raised the particular case of Oldbury-on-Severn, where the existing village shop and post office are due to close in the weekend before Christmas. He asked whether the Minister could offer any reassurance or encouragement to local residents. In reply, Alan Johnson said that Post Office Counters would be encouraged to work with local residents to see whether a solution could be found, but there was no promise of financial support from the Government.

Commenting after the debate, Steve Webb said:

“I understand the need for a long-term approach to the problems of the Post Office network, but I do not believe that the Government should just sit by in the mean time and watch literally hundreds of post offices close down. Many of these will never re-open and many communities will lose a vital centre. It is incredible that the promised subsidies will not be available for over two years. Unless the Government recognises the urgency of this problem, the crumbling of the network will continue unabated”.


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