§ Lord Sainsbury of TurvilleMy honourable friend the Minister for Energy, E-Commerce and Postal Services (Stephen Timms) has made the following Written Ministerial Statement.
The urban re-invention programme aims to create a smaller, more viable network of post office branches adequate in number and suitably located to ensure accessible delivery of service to customers. At the end of the programme, within the UK as a whole, 95 per cent of the urban population will still live within a mile of the nearest post office branch. It is supported directly by government funding. This programme is absolutely necessary. If the Post Office does not adapt to changing customer demands it will spiral into terminal decline.
During recent weeks Members of Parliament and Postwatch have become increasingly concerned about some aspects of the urban re-invention programme, In particular, the consultation arrangements have been criticised. There has been mounting evidence that in too many cases Post Office Limited has not handled them appropriately, or with sufficient sensitivity. Accordingly I asked Post Office Limited and Postwatch to review urgently the arrangements for the consultation currently employed and to propose changes to make them more inclusive and appropriate to achieve a viable network to serve the public after the programme is concluded.
31WSThey have responded to this challenge and I am pleased to announce the following changes applicable to the remainder of the programme which will take immediate effect.
Post Office Limited will advise MPs and local authorities as soon as possible of the remaining timetable for commencing consultations on plans for their area.
Local authorities will be invited to provide relevant information, in advance, on infrastructure and regeneration projects to assist Post Office Limited in the preparation of area plans.
When preparing an area plan, Post Office Limited will achieve a balance between sub-postmasters volunteering to leave the network, those offices which are not viable and the need for relocations and new openings.
Post Office Limited will advise MPs and members of the devolved administrations on a strictly confidential basis of proposals, including the overall rationale for the proposed area plan, one week before they are put out to public consultation.
Public consultation will be on the proposal to close an individual office, but Post Office Limited will also take account of, and respond to, views expressed about the proposed service provision in the area in reaching decisions on individual closures.
Once final decisions have been made and announced, Post Office Limited will write to Postwatch, Members of Parliament and local authorities referring to the main points raised during the consultation and giving the reasons for its decision.
Public consultation will normally last for six weeks but will in future be extended to take account of public holidays that occur during that period.
In view of Post Office Limited's responsibility to notify its staff at directly managed offices of any proposal to close the office before the proposal is put to public consultation, the advance notification of Postwatch, MPs and of the devolved administrations will be replaced by notification of the proposal the day before the proposal is made public and the public consultation period will be extended to eight weeks.
If branches previously identified as expecting to receive additional custom following closure of nearby offices are themselves subsequently proposed for closure, Post Office Limited will provide a detailed explanation of its reasoning in putting forward the proposal for consultation.
Post Office Limited will establish a separate team dedicated to promoting and supervising the implementation of investment required to upgrade remaining offices to ensure the provision of adequate facilities for the additional custom provoked by the closure of nearby offices.
Criteria have been agreed to define the "exceptional circumstances" which may justify putting into public consultation a closure proposal for an office located within the 10 per cent most deprived urban wards and with no other office within half a mile. The core criteria are: the branch proposed for closure being relatively 32WS small; having experienced a significant decline in business between March 2000 and March 2003 with a continuing trend which, if it has not already done so, will render the business non-viable; and having a dense network of surrounding offices with several accessible by reasonable transport links within half a mile to a mile. Other criteria which might also apply include: significant depopulation of the surrounding area or the geography of public service and retail provision has shifted; a clear majority of customers of the branch proposed for closure live within half a mile of alternative branches; and security issues which make it unlikely to be feasible to continue service.
Finally Post Office Limited has confirmed that the documentation between itself and a sub-postmaster does not create any binding arrangement for closure until the public consultation has been completed. No contract binding on Post Office Limited is signed before the public consultation process has ended.
The above new arrangements will be reviewed by Post Office Limited and Postwatch one month after commencement to ensure that the implementation is satisfactory.
Post office closures will inevitably continue to be contentious. However, these changes to procedure should ensure that there is confidence in the consultation process.
Post Office Limited is committed to the successful implementation of the new arrangements and to working with Postwatch to ensure an effective consultation process designed to maximise the quality of judgment and transparency, and to produce a fair result for customers and the company.