HC Deb 11 May 2000 vol 349 cc438-9W
18. Mr. Burns

To ask the Secretary of State for Trade and Industry if he will make a statement on the future of rural and suburban sub-post offices. [120522]

Mr. Alan Johnson

The Government are contributing £480 million toward the cost of equipping the whole national network of post offices with an automated on-line IT platform. This investment in the automation project is substantial and is a clear indication of the Government's commitment to the future of the Post Office network. Nearly 40,000 counter positions in over 18,000 offices will be equipped with the modern computer system. Automation will attract new customers and services to the Post Office, replacing traditional business progressively eroded by changing customer demands and habits, which, in turn, will contribute to strengthening the long-term viability of the network.

In addition, the Performance and Innovation Unit is examining the longer term future of the network and is working across Government Departments to establish how best the Post Office network can be used and promoted.

20. Mr. Gray

To ask the Secretary of State for Trade and Industry if he will make a statement on the Performance and Innovation Unit report into the Post Office network. [120524]

Mr. Alan Johnson

I understand that the Performance and Innovation Unit will report the results of its study of the Post Office counters network to the Prime Minister shortly.

23. Mr. Gordon Prentice

To ask the Secretary of State for Trade and Industry what estimate he has made of the levels of subsidy that will be required to safeguard the future of post offices in small towns and villages and in rural areas. [120528]

Mr. Alan Johnson

It is too early to assume that subsidy would be the right way forward. The Government's key target is a viable commercial future for the Post Office network. The Government are using the opportunity of the Post Office Bill to propose taking the necessary powers to keep open the option of financial assistance.

32. Mr. David Heath

To ask the Secretary of State for Trade and Industry what recent discussions he has had with the Chancellor of the Exchequer on the scale and timing of the proposed subsidy to sub-post offices threatened with closure. [120537]

Mr. Alan Johnson

The Government have no plans at present to subsidise the network of post offices, but are using the opportunity of the Post Office Bill to propose taking the necessary powers to provide financial assistance towards ensuring provision of postal and other services at post offices, should that prove necessary at some future stage.