§ Mr. WrayTo ask the Secretary of State for Trade and Industry what recent discussions the Government have had with Consignia in relation to keeping open rural post offices. [66638]
§ Mr. TimmsThe Government are committed to the maintenance of a nationwide network of post offices and placed a formal requirement on the Post Office in November 2000 to maintain the network and to prevent346W any avoidable closures of rural post offices. We are in regular contact with Post Office Limited about a range of issues relating to the future of the network.
The Government have invested £480 million in a modernisation programme to computerise the whole of the post office network. We have made available a £2 million fund to support volunteer and community initiatives to maintain or re-open post office facilities in rural areas where traditional services would otherwise close. Figures for end May 2002 showed that 64 applications—to a value of £500,000—had been assessed and approved and to that date payments of £231,000 had also been made.
In addition, we have received advice from the Postal Services Commission on transitional financial assistance for the rural network and proposals are being developed in the context of that advice.