03 November 2006
MPs on the Commons' trade and industry select committee have added their voices to calls to save rural post offices from going out of business.
A report published by the committee on October 30 warned that unless action is taken to protect the network, the benefits that post offices provide to communities could be 'lost forever'.
Last month, a petition with 4 million signatures was handed in to Number 10 by the National Federation of Sub-postmasters, calling for government support.
The MPs say sub-postmasters feel a 'sense of betrayal' over plans such as the scrapping of the Post Office card account – a key source of revenue.
The government says it has invested an 'unprecedented' £2bn in the network. A Department of Trade and Industry spokesman said the network was a 'matter of priority'. 'We will be announcing shortly a future strategy to provide sub-postmasters with the certainty they need,' he said.
But the MPs are unconvinced. They stress that although the government is committed to subsidising the network on a social basis until 2008, regrettably policy is accelerating the move away from post office use.
The report points out that the network's income from government fell by £168m in 2005/06 as more benefits were paid directly into bank accounts.
The trend is expected to continue, and in five years' time less than 10% of post office income will come from government.
'Decisions are needed by the government now to plan the post office network for the future, taking into account postal services and the wider social functions provided by post offices in local communities,' the report said. 'If the government fails to act, the network and all the benefits it provides for communities could be lost forever.'
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