HC Deb 14 February 2002 vol 380 cc306-7
9. Adam Price (East Carmarthen and Dinefwr)

What recent discussions she has held with Consignia regarding the preservation of the rural network of sub-post offices. [33800]

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

Discussions with Post Office Ltd. take place regularly on the implementation of the performance and innovation unit recommendations to modernise the post office network, including those relating specifically to the rural network. The Government's formal requirement on the Post Office to maintain the rural network and to prevent avoidable closures of rural post offices remains in place.

Adam Price

I am grateful to the Minister for his characteristically un helpful reply. If the Government are sincere in their commitment to preserve the rural network, why is the commission on the new automated teller machine system weighted against smaller post offices, because it increases with volume? If sub-post offices have fewer than 180 transactions a month, they will receive no commission. Can we have a real business plan from the Government to save the rural network, or is that too much to ask of a Government who care little for rural communities?

Mr. Alexander

The sincerity of the Government's commitment to the rural network is evidenced by the fact that we have accepted every one of the 24 PIU recommendations, which we have backed with real cash. Some £480 million has been contributed to the network to upgrade the computer systems and another £270 million has been committed as a result of the last spending round. There have been other changes on top of that. The rural transfer managers are making a significant difference in community after community across the country, and the new £2 million fund for community post offices will also have an impact across the country. In addition, there is an obligation on Consignia to prevent avoidable closures. That is in direct contrast to the previous Government's neglect.

Mr. David Kidney (Stafford)

Will the Leicestershire pilot of "Your Guide" be extended nation wide later this year? If so, who will pay for it?

Mr. Alexander

As I said in a debate late last year, the pilot will be completed on time, at the beginning of March. That will allow us not only to evaluate the effectiveness of the service and the income stream to Post Office Counters Ltd. but to expedite work across Government in considering the delivery of electronic services. I can assure my hon. Friend that we areproceeding apace not only with discussions within Government, but also with the evaluation of the pilot with Post Office Counters.

Brian Cotter (Weston-super-Mare)

May I again ask the Minister why, 18 months after the introduction of the £2 million interim scheme to help rural sub-post offices and urban post offices, only five claims have been made, totalling £27,000? I have asked that question before, and the issue has been raised on several occasions. There has not been a satisfactory answer, although we are seeing, week on week, sub-post offices closing throughout the country.

Mr. Alexander

I am glad to say that one of the reasons why there has not been as much demand as there would have been in the equivalent period last year is that the rate of post office closures is falling, not rising. The significant figure to which I draw the hon. Gentleman's attention is that, in the current year, the total number of closures has been far less than the 434 that occurred last year. In fact, real progress has also been made on the scheme to which he refers. In addition, more than 100 forms have been sent to organisations across the country. My predecessor ensured that many parish councils were notified of the scheme's availability. I am confident that, as the months proceed and where opportunities for community involvement in post offices exist, the scheme will provide an effective and efficient means by which to make progress.