§ Mr. RobathanTo ask the Secretary of State for Trade and Industry whether her Department is providing funds for the payment of bonuses to network development managers who achieve a target number of Post Office branch closures under the Urban Network Reinvention Programme; and what the value of each bonus is. [107377]
§ Mr. Timms[holding answer 4 April 2003]: The Department is providing funds only for compensation payments and investment grants under the Urban Network Reinvention Programme. Post Office Ltd. is funding its costs for administering the programme. Decisions relating to staff management and remuneration arrangements are operational matters for Post Office Ltd. (POL), and I have therefore asked the Chief Executive to write direct to the hon. Member.
§ Mr. RobathanTo ask the Secretary of State for Trade and Industry how much of the additional subsidy to the rural post office network announced in late 2002 will be paid to rural sub-postmasters as extra pay; and how much will be given to Post Office Ltd. to run the rural network. [107379]
§ Mr. Timms[holding answer 4 April 2003]: Rural post offices across the UK will benefit from the £450 million package of financial support for the rural post office network that I announced on 2 December 2002. £66 million per annum will be used to maintain income levels for sub-postmasters (through maintaining the "assigned office payment' (AOP), which is the fixed part of sub-postmaster pay). £79 million in year 1, and £74 million per annum in years 2 and 3 will be used to fund the front line services necessary for every rural post office to operate, including IT and cash handling and distribution. Additionally, there will be a flexible fund of £25 million—£5 million in the first year and £10 million per annum for years 2 and 3—to modernise service delivery and pilot innovative ways of delivering services.
§ Mr. CarmichaelTo ask the Secretary of State for Trade and Industry (1) what representations she has made to the European Commission regarding the delay in granting confirmation for the £450 million government support for rural post offices; [108133]
(2) if she will make a statement on the progress made in securing European Commission confirmation 172W for the £450 million government aid for rural post offices. [108134]
§ Mr. TimmsThe £450 million of assistance for the rural post office network announced in December for the period beginning April 2003–06 is subject to State Aid approval. We submitted our notification to the Commission in December for clearance.
The timetable for state aid clearance is a matter for the European Commission. DTI is working to ensure that the questions and issues raised by the Commission are responded to as quickly as possible. We are confident in our case and anticipate approval in due course.