§ 8. Mr. Andrew Turner (Isle of Wight)How many urban post offices have been (a) proposed and (b) approved for closure since the inception of the network reinvention scheme. [136683]
§ The Minister for Energy, E-Commerce and Postal Services (Mr. Stephen Timms)I am understand from Post Office Ltd. that to the end of September, it had entered into public consultation on 886 closure proposals and that 540 branches had closed under the programme.
§ Mr. TurnerI thank the Minister for his reply and the attention that he has paid to the concerns of my constituents about post office closures in recent days. He told the House yesterday that
there is a properly managed process for the Post Office to configure its network to meet the needs of the communities that it serves".—[Official Report, 5 November 2000; Vol. 412, c. 909.]Does that mean that the Post Office does not simply wait for requests from postmasters and postmistresses to retire, but proactively approaches some of them with the suggestion that they might take advantage of the urban network reinvention scheme? In other words, does the Post Office take a strategic view of where sub-post offices should be?
§ Mr. TimmsIt is vital that such a strategic view is taken. Indeed, that is one of the benefits of the new arrangements being put in place, about which the hon. Gentleman knows well. The Post Office will consult on the ultimate configuration of the post office network in a constituency or group of constituencies, instead of consulting on individual closures.
We want to ensure that we have a configuration for the network that is viable and sustainable. Everyone knows that a lot of the traditional business of post offices has been declining. For example, 43 per cent. of benefits recipients now have their money paid into a bank account, compared with 26 per cent. in 1996, before direct payments started. Investment by the Government means that there is now an attractive future based on banking but, to prosper, the urban network needs an appropriate configuration and size, given current demands. It is important to take that strategic view.
§ Mr. Harry Barnes (North-East Derbyshire)Is the Minister aware of the sheer inadequacy of the Post Office's consultation process? When people make representations, they are likely to receive a letter 80 per cent. of which is devoted to the argument about why massive changes must take place, which pre-empts the decision to be made. That happened in Coal Aston in my constituency, where the branch is to close on 6 December. I hope that the matter will be looked at closely before that date, with a view to reconsideration. The considerable number of representations that were made had various unique characteristics, and they must be taken seriously. In that way, I hope that we can still stop the closure.
§ Mr. TimmsIt is important that such representations are taken seriously. That is why we have given Postwatch the funding and resources to do an effective job on behalf of the Post Office's customers. Of just over 1,100 proposals submitted to Postwatch by the end of October, 43 were withdrawn and 60 were modified before public consultation. Of those that went to consultation, 48 were modified and 13 were withdrawn for further consideration. That shows that there is effective protection of the interests of Post Office customers. The role of Postwatch is key in that.
§ Mr. Tim Yeo (South Suffolk)Will the Minister confirm that Labour's policy of ending the cash payment of pensions and social security benefits at post offices is cutting the income of many sub-post offices by 924 as much as 40 per cent? Will he also confirm that Labour approves of the policy of paying bonuses to the management of Post Office Network for accelerating the programme of post office closures? Will he further confirm that, once Labour has decimated the urban network, it will set about carving up the rural network as well?
§ Mr. TimmsThe hon. Gentleman is quite wrong on all those scores. May I wish him well in the reshuffle that we understand is planned for the Conservative Front Bench this afternoon, and express the hope that he will not be sacked by text message? For far too long, the Post Office has been locked in a declining market. Even now—and persistently under the previous Conservative Government—that market has been based on ration-book technology. Our investment of £500 million has given the network the technology to tackle the much larger, and growing, market for banking services. Those developments open up the prospect of a commercially successful future for the post office network, based on today's needs instead of yesterday's.
§ Mr. David Lepper (Brighton, Pavilion)Will the Minister acknowledge that residents in my Brighton and Hove constituency—[HON. MEMBERS: "Brighton and Hove?"]—in the Brighton, Pavilion constituency that I represent are now two weeks into a consultation period on six post office closures? Other offices across the city are also to be closed, but none of the evidence underlying the Post Office's closure proposals has yet been published. That severely undermines people's ability to respond meaningfully to a consultation exercise. Will my hon. Friend join me in urging the Post Office to publish in full the evidence that underlies all its proposed closures, in my constituency and elsewhere?
§ Mr. TimmsI think my hon. Friend will agree that the new procedure that he has described, which allows him to see what the ultimate configuration of post offices in his constituency will be, is better than dealing with proposed closures one by one, as used to be the case. I urge my hon. Friend, and other hon. Members concerned about proposals in their areas, to draw their concerns to the attention of Postwatch, a major part of whose work consists of protecting customer interests, in all constituencies. If my hon. Friend does that, I think he will find a ready ear for the concerns he has expressed.