§ Mr. Bob RussellTo ask the Secretary of State for Trade and Industry what proposals he has to expand banking and financial services in the national network of post offices; and if he will make a statement. [114909]
§ Mr. Alan JohnsonThe Horizon project to equip the post office network with a modern on-line IT platform, towards the capital costs of which the Government is contributing nearly £500 million, will enable the Post Office to improve its services to existing clients and to attract new clients and services. In particular, Horizon offers the potential to move into automated network banking on an agency basis enabling post offices to restore a vital service to many rural areas and smaller communities. The Post Office already has arrangements with Girobank/Alliance and Leicester, LloydsTSB and the Co-operative Bank and they are currently in discussion with other High Street banks. An agreement has recently been reached on a pilot scheme in Cornwall to offer counter services on behalf of Barclays.