§ Richard BurdenTo ask the Secretary of State for Trade and Industry what discussions she has had with Post Office Ltd. on the interpretation of European Commission approval of the funds made available for the Post Office Urban Reinvention Programme; and if she will make a statement. [177701]
§ Mr. TimmsThe terms of the compensation funding for the Post Office Urban Reinvention Programme are set out in the October 2002 offer letter between the Department and Post Office Ltd. and reflect fully the terms of the European Commission's approval of the scheme for state aid purposes.
The rationale for the urban reinvention programme, and the context of the European Commission's state aid clearance, is to restore the urban post office network to economic sustainability by reducing its size, while continuing to maintain good levels of accessibility with at least 95 per cent. of the urban population nationally living within one mile of a post office and the majority within half a mile at the end of the programme.