POL – Update on the Post Office Card Account - EDM 1506

[TrueBlueTerrier]

No: 665/08
Ref: 121
Date: 28 August 2008

http://www.cwu.org/members/action.asp?s ... 1&catid=21

TO: ALL BRANCHES WITH POSTAL MEMBERS


Dear Colleague

POL – Update on the Post Office Card Account - EDM 1506

Further to LTB 537/08, the decision on who will be awarded the contract to administer the successor product to POCA is now expected sometime in the autumn. This gives us additional time to place pressure on the government. To date, 250 MPs have signed Early Day Motion 1506.

Notwithstanding the above, the following press release has been issued. The release was published in response to a Conservative Party press statement (attached for your information) issued on the 21st August regarding the POCA.

POCA has huge potential says CWU

Responding to the Conservatives’ suggestion to extend the function of POCA to include payment of energy bills, CWU argues this is just one example of the potential that the account has and strengthens the need for the contract to remain with the Post Office.

Billy Hayes, general secretary, said: “We believe there is huge potential to expand the functionality of the Post Office Card Account (POCA). Current account features such as bill payment would benefit thousands of low-income households who often suffer from financial exclusion.

“However, this will only be possible if POCA remains under the control of the Post Office. The delay in announcing who has won the POCA contract is undermining attempts to enhance the service and is having a destabilising effect on the post office network.

“The Post Office’s unrivalled reach across the UK, together with the public’s trust in its integrity, means the availability of POCA services through the post office network is absolutely fundamental and necessary.

“If the Tories are genuinely concerned about vulnerable low-income households and the sustainability of the public services provided by the post office network, then they should back EDM 1506, signed by over 151 Labour MPs, which calls for POCA to remain with the Post Office.”

Despite their public support for the Post Office, only 24 Conservative MPs have signed EDM 1506. Furthermore, the Conservative Party proposal for a POCA with direct debit function could potentially lead to the Post Office losing the contract as they currently lack the in-house clearing bank facilities to administer such a service.

The Conservative Party’s statement is silent on the issue of ensuring POL operate an improved POCA with a direct debit function and, consequently, their proposals appear to pave the way for a lucrative public contract to be handed to the high street banks who have shown little inclination to assist and support rural and urban deprived communities and continue to fail to address financial exclusion.

The CWU are calling for the government to establish a universally accessible Post Office bank, which would include appropriate clearing arrangements with a basic, current and children’s account, as well as development of the POCA into a basic bank account with a range of functions, including direct debits. This would ensure universal access to banking facilities across the UK and bring additional income to the network.

To view a list of MPs who have signed the EDM to date please visit http://edmi.parliament.uk/EDMi/EDMDetai ... ESSION=891

Branches should check to see if their local MPs have signed the EDM and, if not, contact them as soon as possible to encourage them to do so. A model letter is available for this purpose in LTB 537/08.

For further information please contact nchilds@cwu.org

Yours sincerely


Andy Furey
Assistant Secretary