POST OFFICE CULL A "BETRAYAL" OF WELSH COMMUNITIES - WELSH LIB DEMS

12.16.02pm UTC (GMT +0000) Thu 14th Dec 2006

The Welsh Liberal Democrats have blasted today's Government's statement on the rural Post Office Network as a 'betrayal' of communities across Wales, and have pledged to fight to secure a sustainable future for Wales' Post Offices.

Today's announcement by Post Offices Minister Jim Fitzpatrick means that up to 3,000 Post Offices across the rural network are likely to be axed. In Wales this could mean hundreds of Post Offices closures.

Welsh Liberal Democrats have set out an alternative programme of support, and will be asking Ministers to meet with them and a delegation of Welsh sub-postmasters to re-assess these plans, and to present their alternative vision.

Commenting, the Leader of the Welsh Liberal Democrats Lembit Öpik MP said:

"One thing is now crystal clear: the Government doesn't care enough about Wales' Rural Communities to protect one of its vital components - the Post Offices. Cuts to social network payments will mean hundred of post office closures, and the axing of the Post Office Card Account will take away their greatest source of revenue.

"The Government has a terrible track record on Post Offices. One by one they have betrayed Post Offices by cutting key contracts. This year's cuts have cost the Post Office £ 168 Million and still counting. Indeed, when Lib Dems in the Assembly tried to reintroduce the Post Office Development Fund - a scheme which was successful in assisting 106 post offices in Wales during 2002-4 - Labour blocked us.

"The Government should offer more services at the village Post Office, instead of withdrawing them.

"Ministers must keep the Post Office Card Account and strengthen it, so that post office card users can access a wider range of banking services.

"HSBC and NatWest refuse to be part of the Post Office's 'Cash Withdrawal Scheme', which means only 40% of customers can get cash out free of charge at their Post Office. The Government needs to talk with these banks to get them to open up their services to post office users."

Ceredigion's Welsh Liberal Democrat MP Mark Williams, whose constituency has the largest number of post offices of any in Wales, added:

"I dread to think what this decision will mean for the 66 Post Offices in my constituency.

"We will be requesting an urgent meeting between Welsh LibDem MPs, the Welsh Subpostmaster's Federation and Peter Hain to discuss the impact of this decision in Wales, and to stress the huge importance of Post Offices to our rural communities.

"Post Offices should be a one-stop shop for our towns and villages, providing access to a wide range of services, from banking, to council tax payments, and even to process livestock movement records. This approach must be investigated, before Wales' Post Offices are lost forever."

ENDS

Notes to editors:

KEY PRIORITIES FOR WELSH LIB DEMS ON RURAL POST OFFICES

1. POCA - The Card Account is an essential source of income for Post Office and vital to many customers - especially for people in isolated rural communities and those who get benefits and/or pensions paid into it. The Government have committed to provide a replacement for POCA when the contract ends in 2010, but have so far been short on detail. We will campaign for a smooth, automatic transition to the new account for pensioners and benefits claimants, and we will push for an improved card account, with a more attractive range of services.

2. Improved access to banking services - 60% of customers have no access to bank facilities at post offices. NatWest and HSBC refuse to join Post Office Cash withdrawal scheme. Post Office Ltd. is keen to join the Link scheme, but some Link members are blocking this. We will push these banks to join the scheme for the good of customers and the Post Office.

3. Post Offices should be a one stop shop for public services - In the last year Post Offices have lost lucrative contracts with Government departments and agencies, including TV Licences and TV Licence stamps. Vehicle Excise Duty renewal notices are being sent out, urging customers to renew online or by telephone, with little mention of the Post Office. Ministers should investigate providing more services at Post Office counters, and build on the successful Police and Post Office Partnership pilot in mid Wales. The Welsh Assembly Government should consider administering livestock movement through local Post Offices.

Early Day Motion to be tabled by Welsh Liberal Democrats today

Post Office Network in Wales

That this house deplores the Government's decision to cut the Social Network fund after 2008; notes with concern that this could result in 3,000 post office closures nationwide, and hundreds of post office closures in Wales; is further concerned by the Government's plan to end the Post Office Card Account scheme in 2010; recognises the important social role played by post offices, particularly in rural and deprived areas; and calls on the Government to extend the range of services available through Post Offices, to strongly urge the banking sector to open up the Link Cash Withdrawal system to Post Offices, and to scrap plans to end the Post Office Card account in 2010.