Government commited to Post Office Network, McGuire tells postal Conference

05 Nov 2002

Scotland Office Minister Anne McGuire today reiterated the Government's commitment to ensuring a successful postal service.

Speaking at a conference in Inverness organised jointly by postal regulator Postcomm and consumer body Postwatch, Mrs McGuire outlined the extent of Government support.

She said:

"We have committed £270m to implement the recommendations of a Cabinet Office report, which should help secure the future of the post office network. In addition, we have given Royal Mail access to £1.8bn of Government gilts, which will be available to support the nationwide network of post offices, as well as backing the investment required in the mail business as part of Royal Mail's renewal programme.

"The Government recently announced details of a £210m funding package for the urban post office network. We have received advice from Postcomm on proposals for supporting the rural network from 2003 and we hope to be in a position to announce details of substantial financial support in due course."

Speaking after the conference, Mrs McGuire said:

"In conjunction with Royal Mail, we have consistently sought to preserve services in rural areas. The rural network benefits from the considerable investment in the network's IT, and in new products, including universal banking services. The forthcoming funding package for rural post offices, combined with the support already given to the urban network reinvention programme, should help build a vibrant, stable and sustainable network of post offices throughout the country."

NOTES TO EDITORS

  1. Postcomm is the independent regulator for postal services in the United Kingdom. Its primary duty is to ensure that customers continue to benefit from the universal service at an affordable and geographically uniform tariff. Subject to this requirement, Postcomm has a duty to further the interests of postal users, wherever possible by promoting effective competition.
  2. Postwatch is a completely independent consumer organisation which was set up to promote the interests of postal service users, monitor service standards and act as a focal point for consumer issues and complaints.
  3. Government gilts are accumulated market investments in respect of previous dividends. These will remain on Consignia's balance sheet as a reserve whilst the business is being turned around.
  4. In October 1999, the Prime Minister asked the Performance and Innovation Unit (PIU) in the Cabinet Office to draw up a strategy for the future of the post office network. Their report was published in June 2000 and set out 24 proposals to modernise the network. The Government accepted all of these recommendations, and ring-fenced £270m to implement them.
  5. The Government has recently announced details of a £210m funding package to support the urban network reinvention programme, which will address the problems of urban post offices.
  6. Announcements will be made in due course to publicise the Government's funding plans for the rural post office network. These proposals have been developed in the context of Postcomm's advice on the best way to channel transitional financial assistance to the rural network.
  7. In Scotland, there were 26 Post Office closures in 2001/02, compared with 63 in the previous year - a 59% reduction