£1.3 billion funding deal for the Post Office

[TrueBlueTerrier]

http://nds.coi.gov.uk/content/Detail.as ... IS+News%29" onclick="window.open(this.href);return false;

The Government has today announced £1.3 billion of funding over the next four years to maintain and modernise the Post Office network.

Business Secretary Vince Cable said:

"The Post Office network is a cornerstone of British life. Our £1.3 billion funding package will reverse the years of decline and secure its long term future. It will ensure that there is no new closure programme - but it will also allow the Post Office to invest, improve its offer and win new revenue streams. It will put the network on a stronger and more sustainable footing.

“The package averages out at over £330m a year - more than double the subsidy paid to the Post Office for the past two years. A large proportion of the last Government's funding was spent on closing post offices. Our strategy is completely different - it addresses the underlying economics of the network, while maintaining its size and reach."

Dave Smith, Executive Director, Post Office Ltd, said:

“I am absolutely delighted that we have reached an agreement with the Government that allows us to modernise the Post Office ensuring we can continue to meet the changing needs of our customers and continue our commitment to communities across the UK.”

Today’s announcement follows last week’s Spending Review, and was made during the first debate in the House of Commons of the Government’s Postal Services Bill. The Bill is designed to protect two cornerstones of British life – the Royal Mail and the Post Office.

Under the Government’s proposals Royal Mail will be able to benefit from an injection of private capital, but the network of 11,500 Post Office branches is not for sale and there will be no further programme of closures. In time the network could be converted into a mutual structure as part of innovative new plans to hand the ownership and running of the Post Office to employees, sub postmasters and local communities.

Declining numbers of customers are using the network, but this new funding package will enable the Post Office to invest and put its network on a more sustainable footing. It will be able to improve customer services – extending opening hours and reducing queues. This will help it to win the new revenue streams and new business it needs.

The Government will shortly publish a policy statement giving further detail on how it plans to secure the Post Office’s long term future – including plans for the network to provide more Government services.

Notes to editors

1. The Government’s Postal Services Bill makes the following proposals:

Royal Mail

* The requirements of the universal postal service – collection and delivery of post six days a week at uniform, affordable prices are written into the Bill. The Government has no intention of downgrading them.
* Royal Mail will be able to benefit from an injection of private capital - ending the dependence on funding from the taxpayer and bringing new commercial disciplines into the business.
* Alongside private sector investment:

o At least 10% of the shares in Royal Mail will go to its employees in the future. This will be the largest employee share scheme of any privatisation for 25 years.
o Royal Mail will be relieved of its enormous historic pension deficit by the Government.

* As part of a general reform of the regulatory regime for mail, the existing regulator, Postcomm, will be replaced by Ofcom, the communications regulator, with the Bill providing for the transfer of Postcomm's regulatory responsibility and its staff to Ofcom.

Post Office

* The network of 11,500 Post Office branches is not for sale and there will be no further programme of closures.
* Could be converted into a mutual structure as part of innovative new plans to hand the ownership and running of the Post Office to employees, sub postmasters and local communities.

2. The funding is broken down as follows:

Financial year 2011/12 - £180m

Financial year 2012/13 - £410m

Financial year 2013/14 - £415m

Financial year 2014/15 - £330m

3. The funding is subject to state aid approval by the European Commission.

4. BIS' online newsroom contains the latest press notices, speeches, as well as video and images for download. It also features an up to date list of BIS press office contacts. See http://www.bis.gov.uk/newsroom" onclick="window.open(this.href);return false; for more information.

[dvbuk55]

Whoops Billy made a faux pas - saying there was no funding beyond 12 months and yet..............................

[TrueBlueTerrier]

Whoops Billy made a faux pas - saying there was no funding beyond 12 months and yet..............................

Be fair Vince only announced it at 13:39, outflanked Billy perhaps.

[dvbuk55]

Whoops Billy made a faux pas - saying there was no funding beyond 12 months and yet..............................

Be fair Vince only announced it at 13:39, outflanked Billy perhaps.

And that's why people in his position should be more circumspect when making sweeping statements. Vince Cable might not even have 1.3Bn to give but then again Vince Cable knows HE is in the driving seat and once privatised will have a multitude of excuses for not stumping up.

Better to say there is no apparent funding for the PO - it's all in the words - like VC could have said "it is intended to invest 1.3Bn".......but in his case it won't matter.

[maisymoo04]

and royal mail is not a cornerstone of british life you are a tosser cable