HC Deb 20 November 1997 vol 301 cc438-9
3. Mr. Barnes

What plans she has to strengthen the viability of the post office network; and if she will make a statement. [15391]

The Minister of State, Department of Trade and Industry (Mr. Ian McCartney)

The future of the post office network is an issue which we are considering as part of our review of the Post Office.

Mr. Barnes

The review, which will extend commercial provisions in post offices, will be welcome, especially in many rural areas of my constituency. Would it not also help if more post offices could be agents for the Driver and Vehicle Licensing Agency? Post offices in my constituency, such as those in Ashover and Danesmoor, would find it valuable to be able to provide such a service instead of having to wait until an agency becomes available, which is how the present system operates.

Mr. McCartney

I thank my hon. Friend for his comments. I wrote to him on 18 August advising him that Post Office Counters Ltd. is the agent for the DVLA and that, for reasons of cost, that organisation limits the number of post offices providing its service to 4,000 nationally. Consequently, Post Office Counters Ltd. gives the best possible geographical coverage within the limits that are set for it by the DVLA. I can confirm to my hon. Friend that the Government are fully committed to maintaining a nationwide network of post offices. As a consequence of that, and as part of a review, we shall seek to find ways and means to secure additional business in a range of areas for post offices in rural areas in particular. That is unlike the previous Government, who just wanted to privatise the Post Office and close it down.

Mr. David Heath

Will the Minister look in particular at the interests of the small rural sub-post office? Will he perhaps go a little further than his answer suggested by seeking ways to extend the range of services that sub-post offices can provide? In particular, will he seek an acceleration of the introduction of information technology systems in sub-post offices to enable them to participate in much wider provision for rural populations?

Mr. McCartney

Almost 60 per cent. of villages in the United Kingdom have a post office but only 5 per cent. have a bank. This week, a ground-breaking agreement was reached between the Post Office and the Co-operative bank which will give basic banking services to all post offices. I repeat that, as part of the review, we are keen to see the introduction of new services in post offices throughout the United Kingdom. My offer to the hon. Gentleman is that, when the review and the way in which we intend to take it forward are in the public domain, I shall welcome from all hon. Members ideas on how to encourage new businesses in rural areas. Post offices should be seen not simply from the narrow angle of post offices but as small businesses in their own right. We are committed to promoting that.

Mr. Prior

Given the Government's commitment to giving the Post Office greater commercial freedom and growing liberalisation in Europe, is the Minister considering the introduction of private capital to the Post Office?

Mr. McCartney

We have already introduced private capital. A few weeks ago, we gave permission for a joint venture involving the catering services company Quadrant. That will ensure the introduction of private capital into what will become one of the largest and, we hope, the most successful contract catering organisations in Europe, providing services not just to the Post Office but to a range of public and private sector companies which can take advantage of the change.