Post Office plans questioned

06-03-2007

Post Office plans questioned
A report by MPs has called into question whether or not the government's plans for the Post Office are sustainable.

Members of the trade and industry select committee back plans to restructure the Post Office while maintaining a network of local branches throughout the country.

But they say the government is not providing sufficient information for them to be certain that the proposed changes are the best decisions being made.

Post Office branch numbers are expected to be reduced from the 14,263 open at present to "about 12,000" in the long-term. This will involve closures of both rural and urban post offices, but the balance between these two remains uncertain.

Also needing to be clarified is the "suspiciously round figure of 2,500" closures cited by the government. Today's committee report on the future of the Post Office network says it is difficult to tell whether this figure is based on what is required or what the Treasury can afford to fund.

"We are concerned to ensure that the right decisions are taken in relation to individual post offices, and that those left after the restructuring continue to exist and, where possible, become commercially viable," committee chairman Sir Peter Luff said.

"We need more detail from the government and Post Office Limited before we can be sure that the restructured network can be sustained."


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