Doing Sums - £180,000,000/10000. Help Wanted

[cdpete2004]

OK, I have a problem. Yes, I know you know I have a problem. But this is a different problem. I'm having trouble working out where the POL government subsidy actually goes. If this has been done on here already, please accept my apologies and point me to the topic, only I can't find anywhere at the moment where this issue is being looked into. Ok. Here goes.

Government gives £180,000,000 subsidy to POL this financial year.

There's, say, 10,000 Post Offices left. I'm not going to try and break this number down into Crown and Sub, or the van things (did they ever get the van things up and running after the last closure program ? - Don't answer that, that's just a distraction. Sorry).

So, we have 180,000,000 divided by 10,000 ? That's £18,000 SUBSIDY per office, give or take. That's SUBSIDY, not EARNINGS, INCOME or REVENUE. Money for nothing, as the government would like us all to believe.

My office receives remuneration, made up of a core payment based on previous years' sales (and this is not based on every single sale of every single item and product, but based on stamps (NOT labels), travel insurance, bureau de change, fs products, telephony products) and a sales tier payment (based on previous month's business), of £26,000.

Now, my £26,000 is based on sales and business conducted on behalf of govt and businesses (BT, other utilities, etc) for which POL gets paid, keeps some for themselves, then passes the rest onto me. POL won't tell me, or you, or even the government, probably, and neither will the businesses that use POL, how much income each product produces for POL. But as an example, this is one that was in the news a little while ago.

BT charges its' customers an additional £1.50 PER Month just for paying their bills at the post office counter, because of the additional admin and cash handling this involves. That's me, I take it, scanning the bill, counting the money, or checking the cheque, since once that's been done, it's all automated from that point on, just like an eft payment, direct debit, standing order, etc. BUT I receive from POL 6p for that baby, (YES, 6p, it's not a typo, £1.50 to BT x 3 months =£4.50 EXCESS collected from customer, BT take £x.xx , POL gets £x.xx , Subpostoffice gets £0.06p). That's £4,44 divvied up between POL and BT.

Catalogue payment, and other Girobank / Santander manual deposit slips, customer is charged an additional £2.60 for paying their bill over the counter by said company. I think I receive 34p for this one, a big money item, this. Plus about 10p for cheque checking or cash ahndling, on average. So, let's say from £2.60 charged to the customer, company gets £x.xx, POL gets £x.xx Subpostoffice receives £0.44p. This time it's £2.16 divvied up between company and POL.

Postal Order Sales. Customer is charged 10% of PO value, minimum charge 50p. Subpostoffice gets 37p. Most POs I sell go on motoring fines or Driving Iicence or Passport applications / renewals, say average Postal Order sale of £50 generates £5.00 income for POL, less 37p flat rate for me, leaving POL revenue of £4.63.

REVENUE FROM ROYAL MAIL. For a stamp sale I get average 3% of stamp value. For label sale, and an acceptance of item (1st class) 37p total. Average 1st class label sale in my office - £3.00. How much does POL get from Royal Mail and keep fpr itself ?

Local Collect From Post Office. Cost to customer £1.50. Income for Subpostoffice £0.44p. £1.06 divvied up between RM and POL, RM have the convenience of not having to deliver to address again, as item is given to PO by RM collection guy. RM income for this transaction should be ZERO, they should be grateful to have somewehere convenient to dump their undelivered items. POL do nothing whatsoever in this transaction, so their income from this transaction should also be ZERO.

Can you all see where I'm going with this ? POL needs to tell us all, tell the government, what the hell it's doing with its' revenue. It's not paying my office overheads, that's all coming out of my income, as are any staff wages, etc, etc. POL needs ot open its' books. Now. Let us all see where the momey's going, let us all have a say in where savings can be made, or eevenue increased, WHEN WE ALL KNOW THE BIG PICTURE and can make informed input into POL's future.

Can POL tell me with a straight face that of my £26,000 remuneration, £18,000 of that has to be covered by a government handout ? Can POL tell me that their overheads, when spread over the whole network, and taken from this £18,000 subsidy before it gets to me, are any greater than are my individual overhaeds and business expenses ? How can they tell me that my, (or any other office in the network) with similar figures, are not profitable, when they set our remuneration and payment rates in the first place ?

POL gets £18,000 subsidy PER OFFICE, plus a lions' share of each and every transaction every office carries out, and gives me £26,000.

Like I said at the start, I'm not great at sums, but theres something VERY WRONG somewhere. Can anyone see where I've gone wrong ? Thanks for any help. Pete.

[simjan]

would be interesting to know how much interest that po makes on post office accounts that get no interest for the customer,

[The BFO]

Completely agree - there is a great deal that just does not add up. My particular favourite is 'Income' from Travel Money sales.

The approach seems to be to repeat the same mantra until everyone simply accepts what is being said.

[paulpg36]

Hi

I am a Subbie. My first post although I read this Forum regularly and find it interesting to hear the views of colleagues within the Crown Office Network.

I think it would be worthwhile posting your analysis on the NFSP Forum (if you are a Member) and/ or Subspace Online which PO staff read and monitor.

I totally agree with the previous posting on travel money income and the rates we offer which are a disgrace and are embarrassing although I understand this is changing from Tuesday when we will be offering online rates on Euros and Dollars over £1,000.

Paul

[subbie]

I would'nt worry about it, the £180m pa will virtually all be gone by 2015, that's why POL are going to force through PO Locals and close down Crown Offices, and the rest that's left will also be on fully variable pay, read the BIS report PO in the Digital Age, its all laid out there, and written and promoted by Lib Dems!!!

Thanks Vince.

Subbie

[simjan]

sorry if its a lib dem idea do you really thing it will happen !

[subbie]

With a little help from call me Dave, Yes

subbie

[cdpete2004]

You know what, Simjan ? This is how ludicrous the PO situation, in winning 'contracts' like the POCA is. While we, the spmrs have to deal with the drunk, the deluded and the just plain gaga who want to take out their last £3.15, for the fifth time this week, it's some large American bank (can't remeber the name right now) that charges the government the big bucks (literally) for the card printing and the money handling. Not that they are able to earn any interest on these sums, of course, no that just wouldn't be fiscally right, but these sums, held in account, surely have some bearing on a company's credit rating, and their own abilioty to raise funds /value their company's worth. POL picks up the scraps, thankyouverymuchguvnor, and if you believe them earns absolutley bollocks-all for the priviledge. I'm going bck to sleep now.