HC Deb 29 November 2001 vol 375 cc1100-1
8. Mr. Elfyn Llwyd (Meirionnydd Nant Conwy)

What recent representations she has received from rural sub-post office operatives; and if she will make a statement. [16477]

The Minister for E-Commerce and Competitiveness (Mr. Douglas Alexander)

My right hon. Friend the Secretary of State for Trade and Industry receives correspondence on a range of issues from numerous people working in the rural sub-post office network.

Mr. Llwyd

I thank the Minister for that most unhelpful reply. Despite the tinkering at the edges by his Department to try to ensure that the rural network of post offices remains, 929 post offices have closed in the past two years. That is twice as many as in the two previous years. That means that the Government's initiatives are failing, and I question whether they really want to keep those post offices.

Mr. Alexander

I can assure the hon. Gentleman that we do wish to maintain the rural network and I can clarify the figures for him. I welcome in particular the reduction in the rate of closures that we have witnessed recently—175 in the first half of this year, compared with 299 in the first half of last year. The Welsh figures may also be of interest to him. There were 13 closures in the first half of this year, compared with 68 last year.

I would argue that the Government are determined to take real action to address some of the challenges that have been mentioned today. We commissioned the PIU report and accepted all its recommendations. There is now a formal requirement on the Post Office to maintain the rural network. We have established a new £2 million fund for community ownership, and rural transfer advisers are now working in the hon. Gentleman's constituency and many others around the country.

The contrast could not be clearer between this Government's actions and the inaction and negligence of the previous Conservative Government, under whom 3,500 rural post offices closed between 1979 and 1997.

Mr. Derek Foster (Bishop Auckland)

I have represented my largely rural constituency for 22 years, and I assure my hon. Friend the Minister that post offices have always been under pressure. The rate of closure of rural post offices was far greater under Conservative Governments, when most rural services deteriorated substantially too. I am delighted with the Government's plans to ensure that rural post offices do not close as quickly as has been the case, but I hope that my hon. Friend will not underestimate the very big backlash that will be felt in rural areas if we fail in what we are trying to do.

Mr. Alexander

I certainly accept what my right hon. Friend has said, not least in terms of the importance that rural communities attach to their sub-post offices. However, the contrast could not be clearer between the actions of this Government, who have ring-fenced £270 million to meet the challenge, and those of the Conservative party, both in government and out.

Last night, I took the opportunity to look at the Conservative election manifesto to find out what active proposals that party had for supporting the rural network. The Opposition had one proposal—

Mr. Speaker

Order. I advise the Minister that it is not for him to tell us the policy of the Conservative party.

Mr. David Heath (Somerton and Frome)

Will the Minister confirm that the date for the transfer of benefit payments to automated credit transfer remains April 2003? If so, when does he expect the systems for the Post Office card account to be operational?

Mr. Alexander

I can confirm the timetable for the universal bank, and that a great deal of detailed work is being done on the specific issues of systems and of the migration strategy that will ensure a smooth transition.