§ Mr. David StewartTo ask the Secretary of State for Trade and Industry what research was(a) commissioned and (b) evaluated in the last 12 months on the effect of the introduction of automated credit transfer on the future financial viability of rural post offices; and what plans she has to commission future research in this area. [70849]
§ Stephen Timms[holding answer 18 July 2002]: The Performance and Innovation Unit's report "Counter Revolution: Modernising the Post Office Network", showed that the future viability of the network was challenged by the introduction of automated credit 187W transfer. In December 2000, PostComm advised my right hon. Friend the Secretary of State for Trade and Industry on support for rural post offices. This advice was based on research which included consideration of the impact of automated credit transfer. No other research has been commissioned into the effects of this on rural post offices in the last twelve months.
As set out in the PIU report the effect on the network will depend on the Post Office's ability to generate replacement business. We are concentrating on supporting the Post Office's efforts to build up these new business opportunities, including universal banking services, so as to mitigate the effects of the move to automatic credit transfer. We will be monitoring the situation closely as the programme unfolds. We have no proposals for other research in this area.