§ Mr. QuinnTo ask the Secretary of State for Trade and Industry if he will make a statement on recent developments in the post office network. [160589]
§ Mr. ByersI am pleased to announce that the Government have reached agreement for the introduction of Universal Banking Services with 11 major institutions. The terms of a Memorandum of Understanding have been agreed and copies are being placed in the Libraries of both Houses.
The banks will make their basic bank accounts accessible through the 18,000 post offices in the network, contribute £180 million to the costs of the Post Office card account, and commit to simple and straightforward account opening for those without bank accounts.
This is a major step forward both in ensuring the future of the post office network and in tackling financial exclusion. Universal Banking Services will provide a range of banking services which will enable a new income stream to come into the network and bring those people currently without bank accounts into the financial mainstream.
It is the latest in a number of measures the Government have announced recently to help strengthen the post office network.
In February I announced a new Government fund to help with the costs of relocating and refurbishing rural post offices. Grants to this fund now being considered include proposals to reopen rural offices near Dover and Cardiff. The Government hope to make several more similar grants shortly and this fund could provide the impetus for reopening up to 200 offices nationwide.
In March, we launched the latest phase in order to pilot post offices in Leicestershire and Rutland as "Government General Practitioners"—a new service that will offer a wide range of information and access to Government services aimed at the general public.
Last month I announced the appointment of Allan Leighton to the Board of the new Post Office company, Consignia, as one of five non-executive directors.
The appointment will add to the skills and experience available to Consignia. He will take special interest in the future development of the post office network.
I am informed by the Post Office that, subject to final verification, a net total of 112 urban offices and 435 rural offices closed in the year ending 26 March 20011. Of the closures in the year, only four are permanent.
The primary reason for temporary closures is the retirement of sub-postmasters.
In addition, 123 rural and 46 urban offices reopened in the year. Also, subject to final verification, net closures in the final quarter of the year ending 26 March 2001 were 113.
This indicates a significant downward trend in post office closures compared with the third quarter when net closures were 135 and the first half of the year when closures were running at a rate of 150 per quarter.
67WThis means that during the period April 2000 to March 2001, in the first half of the year net closures were running at 300, whereas in the final half of the year closures were 17 per cent. lower at 248.
This would appear to indicate that the positive and practical steps taken following the performance and innovation unit report in June are having a beneficial effect.
1based on the Post Office's traditional definition of rural offices as those serving communities with under 6,300 residents.