Release:
5 February 2004
The Welsh Liberal Democrats today called for a halt to post office
closures in Wales as the Trade Minister admitted the plans were flawed.
Peter Black, social justice spokesperson for the Welsh Liberal Democrats,
said: "It would be quite outrageous if any more post offices were to close
in the light of this admission by the Minister that the Government and the Post
Office had got the consultation so horribly wrong.
In a statement today, the Department of Trade and Industry said the Urban
Reinvention Scheme for post office closures is flawed.
Trade Minister, Stephen Timms MP admitted that, in many cases, the
consultation process for closures had not been dealt with appropriately or with
sufficient sensitivity.
Peter Black said the Post Office should re-start the process for the 45
offices in Wales that are currently out to consultation. And he said they
should look again at the 44 offices already closed across Wales.
He said: "It has taken 14 months for the Government to finally admit
the closure programme is a total fiasco, with not a shred of strategic
forethought.
"Local authorities who were spending government money on urban development
for their areas, suddenly found out that the jewel in the crown of their community
was destined for closure, with no prior notice to them.
"Hefty compensation packages of up to £67,000 have been used to lure
postmasters out of the sector. And who can blame them, when the alternative is
to stay in business and watch your income eroded by the automatic credit transfer.
"The improvements outlined in the statement today should make the
process fairer in future consultations, but what about the post offices that have
already closed?
"Having acknowledged that the urban closure is a fiasco, the DTI
must now begin a review of those closures, and take appropriate steps where necessary.
"The Welsh Liberal Democrats still have significant concerns about
the future of the British post office network. Through Automatic Credit
Transfer, the Government has effectively dismantled the postmasters' ability to
make a decent living.
"It is no wonder then that rural post offices continue to close,
despite Government assurances that they will receive help to stay open."
ENDS
Notes to Editors
·
The closure programme began in November 2002 and was originally scheduled
to last three years. The Government recently announced the programme would have
to be completed by December this year.
·
A third of the urban network is to close, meaning approximately 3,000
post offices across the UK.
·
The funding package for the Urban Reinvention Scheme amounts to
£210million. £180 million is for compensation for Sub Postmasters if they close
their business, £30 million is set aside for matched funding grants of up to
£10,000 for the remaining post offices to upgrade their businesses.
·
Subpostmasters are being offered on average £65k in compensation if they
close their business. This is often in excess of the commercial value of the
business. The Watchdog PostWatch claim
the result is that offices that could and should remain open do not do so
because of the generous and inflexible compensation package.
·
The improvements in the consultation arrangements for the post office
urban reinvention network were announced today by Stephen Timms. Headline
changes include:
·
Post Office Limited will advise MPs and local authorities as soon as
possible of the remaining timetable for commencing consultations on plans for
their area.
·
Local authorities will be invited to provide relevant information, in
advance, on infrastructure and regeneration projects to assist Post Office
Limited in the preparation of area plans.
·
When preparing an area plan, Post Office Limited will achieve a balance
between sub-postmasters volunteering to leave the network, those offices which
are not viable and the need for relocations and new openings.
·
Post Office Limited will advise MPs and members of the devolved
administrations on a strictly confidential basis of proposals, including the
overall rationale for the proposed area plan, one week before they are put out to public consultation.
·
Public consultation will be on the proposal to close an individual office
but Post Office Limited will also take account of, and respond to, views
expressed about the proposed service provision in the area in reaching
decisions on individual closures.
·
Once final decisions have been made and announced, Post Office Limited
will write to Postwatch, Members of Parliament and local authorities referring
to the main points raised during the consultation and giving the reasons for
its decision.
·
Public consultation will normally last for 6 weeks but will in future be
extended to take account of public holidays that occur during that period.
·
If branches previously identified as expecting to receive additional
custom following closure of nearby offices, are themselves subsequently
proposed for closure, Post Office Ltd will provide a detailed explanation of
its reasoning in putting forward the proposal for consultation.
·
Criteria have been agreed to define the "exceptional circumstances"
which may justify putting into public consultation a closure proposal for an
office located within the 10% most deprived urban wards and with no other
office within half a mile. The core criteria are: the branch proposed for
closure being relatively small; having experienced a significant decline in
business between March 2000 and March 2003 with a continuing trend which, if it
has not already done so, will render the business non-viable; and having a
dense network of surrounding offices with several accessible by reasonable
transport links within half a mile to a mile.
Other criteria which might also apply include: significant depopulation
of the surrounding area or the geography of public service and retail provision
has shifted; a clear majority of customers of the branch proposed for closure
live within half a mile of alternative branches; and security issues which make
it unlikely to be feasible to continue service.
Finally, Post Office Limited has confirmed that the documentation between itself and a sub-postmaster does not create any binding arrangement for closure until the public consultation has been completed. No contract binding on Post Office Limited is signed before the public consultation process has ended .