Post Office to get £1.3bn of extra funding

[POSTMAN]

http://www.bbc.co.uk/news/business-11637989" onclick="window.open(this.href);return false;

The Post Office is to receive £1.3bn of extra funding over the next four years, Business Secretary Vince Cable has announced.

Mr Cable told the House of Commons that the funding would be used to reform the current network.

He stressed "there will be no programme of closures under this government".

Earlier this month, Mr Cable unveiled the government's plans to privatise Royal Mail, while the Post Office may be mutualised.

"Our funding will be used to reform the current network, to change the underlying economics, and so reverse the years of decline and secure its long-term future," Mr Cable said.

"The Post Office will be able to invest, improve its offer and win new revenue streams."

[billyhayes]

So, there it is. Another 4 years of funding.

I have trademarked the term "Forward4to15" Just in case. Could be a nice little earner.

The elephant in the room is the words REFORM and CHANGE.

Whether or not the plan to mutualise pans out, I can still see the network of 373 crowns shrinking further.

Of course these 2 words could also bring positives... but unfortunately we are not naive... they usually mean CUTS.

"There will be no programme of closures under this government."

DOES NOT mean "There will be no closures under this government."

[The BFO]

In my opinion this is the most significant development in a long time. However, what about Crown Offices? There is nothing specific in this regard on the Department for Business, Innovation and Skills website: http://nds.coi.gov.uk/content/Detail.as ... wsAreaID=2

[subbie]

Sorry to have to say this, but Crowns have had their day, Reform = No Crowns, other types of a PO Counter service can provide for the public's needs.

Subbie

[billyhayes]

Provide for the public needs = the 'old' post office.
The 'old' post office = popping out to buy a single stamp from the little post office on the corner, and have a chat with the person behind the counter.
I don't think the vision of any government of the 21st century follows this edict.
They won't tolerate this with their £1.3 billion. They will want a return on that investment.
It's about selling financial services.
Unless your 'local' post office, which most likely still shuts half day wednesday , has a full time financial specialist, they are gonna have to sell an awful lot of out of date loaves of bread and 1st class stamps at 50p to stay off the radar.
And don't let the old smokescreen of "crowns make no money" fool you.
Where do you think 99% of the foreign currency is sold? Or savings, insurance blah blah blah.
It certainly isn't at a small desk made out of milk crates wedged between aisles of Spam and tampons.
(I've witnessed that myself. Didn't know whether to laugh or cry!)

[PO1]

Seen Vince at Westminster and he's agreed to revise the figure to £1,299,960,000. The other £40,000 has gone for my VR.

[billyhayes]

40 grand!? That's 80 bags of pound coin!! My Cortina wouldn't even break a sweat!

[The BFO]

Sorry to have to say this, but Crowns have had their day, Reform = No Crowns, other types of a PO Counter service can provide for the public's needs.

Subbie

Have you ever worked in a Crown Office? I have never worked in a Sub Office, and do not have the faintest idea what it is like to be self employed. I would not dream of making disparaging remarks about something I know nothing about, and I suggest that you should not either.

[subbie]

I have worked in a Crown Office as it happens, for 10years, and I have held office within the CWU.
And I was not making disparaging remarks either, just stating the obvious. Crowns are not a cost effective way of delivering the PO service, and it would seem they cannot be made to be either.

Subbie

[subbie]

Hi Billy

The Sub Office Network combined accounts for 80% of POL's income, not bad eh? For a bunch of hicks, and some of us even manage to achieve these sales and still have a half day!!

Subbie

[billyhayes]

So there are approx 11,500 Post Offices in total.

ONLY 373 crowns can generate 20% income share. Crowns make up just over 3.5% of the actual number of Post Offices.

It takes over 11,000(!) subs, partners etc etc to reach 80%.

But I digress...

80% you say!? Gosh, maybe Crowns should start diddling the customers by overcharging for single stamps then. In no time at all we'll be quids in...
And that is not taking the pisces. I applaud the acumen. Do what you gotta do to survive.

[subbie]

Who said the Crowns account for 20% of the balance of the income, a lot of the remaining 20% will be derived from internet and tele sales of JV products.

At the end of the day it is not so much about income generation but more to do with the cost of providing the infrastructure to generate those sales.

We have all seen the profit and loss figures for Crown Offices, your answer lies there, the business case no longer stacks up, if it ever did.

Subbie

[billyhayes]

I completely agree with you. As soon as everyone is singing fom the same hymn sheet by paying minimum wage and overcharging customers, all will be well...

I tried it today, just to test the water. I got up to 68p for a SECOND class stamp on some old dear... And you know what? She said "I dont usually come into town to get my stamps. Have they gone DOWN in price?"

I coulda kissed her if the smell of urine wasn't so strong.

Lulz!

(reel 'em in )

[subbie]

You cant really handle debate Billy can you?

Subbie

[billyhayes]

Tis not a debate. I neither stand by, or agree or disagree with ANYTHING you or I have said thus far.

I am posting inane drivel simply to whip you up old chum.

Mission accomplished.

Anyway... I'll see if I can beat today's inflated-subbie-stamp-price tomorrow. I've been reading through a shed-load of confidence trickster techniques on the 'ol interweb.
I would send you the link but you probably already have them in your browser favourites.

Keep you posted...