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FURTHER INFORMATION
The Government and Postcomm, the independent regulator for postal services, have opened up Royal Mail to greater competition while denying it the freedom that it needs to compete effectively. This Government has presided over the largest ever annual closures of Post Offices: over 4,000 have closed since 1997. The Government’s decision on the future of the Post Office network amounts to an acceleration of that rate of closure, shutting a further 2,500 branches over the next two years. By the time of the next General Election, the Government will have closed over one third of the entire Post Office network.
Daniel believes that this decision is based on how many Post Offices the Government thinks that it can get away with closing, rather than on a real business case or on an understanding of what consumers want and need. The Government’s vision is to have fewer Post Offices, providing fewer services to fewer people, which will affect the most vulnerable people in communities across the country. The Government needs to recognise that where a local Post Office closes, often the last shop in the village closes as well: a van for a few hours a week is no replacement for a Post Office open full time.
It has been suggested that the European Union - and not the Labour Party - is responsible for the closure programme, as a result of Directives requiring liberalisation of the postal market. This is not the case. These directives relate to the Royal Mail and its postal collection and delivery services, rather than the wholly-owned subsidiary Post Office Limited (POL), which is not subject to competition. In spite of this, POL remains loss-making.
As already mentioned, the Government decided last year that 2,500 Post Offices must close to stem financial losses. However, the real problem is that the Government has failed to explore other ways to bring new business into Post Offices, for example by freeing them up to offer new services, including more financial services; to work with carriers other than the Royal Mail; to be a hub for central and local Government services. This would have enabled many more Post Offices to survive on business rather than subsidy, but instead the Government seems happy simply to manage the decline of the Post Office network.
It is wrong to suggest that the EU is the cause of the current closure programme. It is the British Government which has decided how many should close, what the funding package should be and what the access criteria should be to decide which ones will close. We should not let them off the hook!
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