Post offices in rural areas 'at risk unless action is taken'

[TrueBlueTerrier]

http://www.heraldscotland.com/news/home ... -1.1077071" onclick="window.open(this.href);return false;

Many Scottish post offices will remain at risk of closure unless tangible action is taken soon, an influential committee of MPs has warned.

The Tory-LibDem Coalition has been told to increase the number of Government services accessed through post offices, to ensure their long-term viability.

Ministers should also publicly commit to retaining the existing network of branches, MPs on the Commons Scottish affairs committee recommend.

It publishes a report today into postal services in Scotland that warns “good intentions” are not enough and called for clear assurances instead.

The network of post offices “is in a precarious position”, the document warns, despite a proposed increase in funding announced during the last Comprehensive Spending Review.

Scotland lost 28% of its post offices in the last decade. Of those that remain, 70%, are in rural areas and provide a lifeline for communities. But many depend heavily on subsidy.

There have been concerns that they will face further pressure under Coalition plans to privatise the Royal Mail, on which post offices depend for about one-third of their income.

Although ministers insist that there are no planned post office closures, critics warn that they could be an inevitable consequence of any sell off.

The report says that it is of concern that the bill does not prescribe a set number of post office branches. It warns that the criteria could be met by just 7500 branches across the UK rather than the existing 11,500 branches, of which 1446 are in Scotland, leading to many closures.

The committee examined concerns that any privatisation could lead to a downgrading of the Universal Service Obligation, which guarantees delivery six days a week anywhere in Britain.

Ian Davidson, the Glasgow South West MP and chairman of the committee, said that he welcomed assurances from ministers that any changes to the obligation would require a vote in the House of Commons.

“What is much less clear is the long-term future of the post office network,” he said. “The lack of solidity in assurances regarding the postal network is worrying.

“Postal services are the life blood of many rural, remote and island communities throughout Scotland and the survival of many small businesses depends on the network.

“Yet it remains unclear how the Postal Services Bill will protect consumers in deprived urban, rural and remote areas.”

Malcolm Bruce, LibDem MP for Gordon, said: “There will be a change in public ownership, but there will be no Post Offic closure programme as Labour planned and the Government will seek to support the network.”

A Department for Business spokesman added: “We have clearly stated that there will be no further programme of closures.”

[barbario]

What they mean is,"no further closes at the moment ".

[TrueBlueTerrier]

What they mean is,"no further closes at the moment ".

I disagree slightly - I think they mean no planned closures. However, that does not rule out unplanned closures or closures because of policy changes etc. No planned closures to me is more worrying because if they do make changes to the market it means survival of the fittest and loss making branches will go to the wall regardless of coverage or foot fall.

[Lounge Lizard]

http://www.heraldscotland.com/news/home ... -1.1077071

Many Scottish post offices will remain at risk of closure unless tangible action is taken soon, an influential committee of MPs has warned.

The Tory-LibDem Coalition has been told to increase the number of Government services accessed through post offices, to ensure their long-term viability.

Ministers should also publicly commit to retaining the existing network of branches, MPs on the Commons Scottish affairs committee recommend.

It publishes a report today into postal services in Scotland that warns “good intentions” are not enough and called for clear assurances instead.

The network of post offices “is in a precarious position”, the document warns, despite a proposed increase in funding announced during the last Comprehensive Spending Review.

Scotland lost 28% of its post offices in the last decade. Of those that remain, 70%, are in rural areas and provide a lifeline for communities. But many depend heavily on subsidy.

There have been concerns that they will face further pressure under Coalition plans to privatise the Royal Mail, on which post offices depend for about one-third of their income.

Although ministers insist that there are no planned post office closures, critics warn that they could be an inevitable consequence of any sell off.

The report says that it is of concern that the bill does not prescribe a set number of post office branches. It warns that the criteria could be met by just 7500 branches across the UK rather than the existing 11,500 branches, of which 1446 are in Scotland, leading to many closures.

The committee examined concerns that any privatisation could lead to a downgrading of the Universal Service Obligation, which guarantees delivery six days a week anywhere in Britain.

Ian Davidson, the Glasgow South West MP and chairman of the committee, said that he welcomed assurances from ministers that any changes to the obligation would require a vote in the House of Commons.

“What is much less clear is the long-term future of the post office network,” he said. “The lack of solidity in assurances regarding the postal network is worrying.

“Postal services are the life blood of many rural, remote and island communities throughout Scotland and the survival of many small businesses depends on the network.

“Yet it remains unclear how the Postal Services Bill will protect consumers in deprived urban, rural and remote areas.”

Malcolm Bruce, LibDem MP for Gordon, said: “There will be a change in public ownership, but there will be no Post Offic closure programme as Labour planned and the Government will seek to support the network.”

A Department for Business spokesman added: “We have clearly stated that there will be no further programme of closures.”

The best thing these Scottish rural communities can hope for is that their village is designated as the next New Town, just like East Kilbride, Glenrothes, Cumbernauld, Livingston and Irvine, and then they'll be sure to keep a Post Office.