Government must rethink abolition of Post Office Card Account - Burstow

1.40.27pm UTC (GMT +0000) Mon 23rd Oct 2006

Commenting on new figures uncovered by the Liberal Democrats that show over 2800 people in Sutton and Cheam use the post office card account to receive their pensions or benefits, Paul Burstow, MP for Sutton and Cheam, said: "It is astonishing that the Government seems intent on destroying a service which is of such great value to so many people in the local community and the country as a whole. The post office card account offers an accessible and affordable way for thousands of people in the area to receive their benefits, yet the Government is proposing to axe it.

"Without the vital revenue stream from the post office card account, the Government is further undermining the long term viability of the post office network meaning that even more than the 3,500 post offices already closed by Labour will be put out of business."

Commenting further on an Age Concern Report published earlier this month Paul Burstow MP said:

"The Government must pay far greater heed to the effects the closure of post offices have on a community - nearly 8 out of 10 people feel that the closure of their local post office would present a loss of essential local services.

"This is yet another example of an over centralised Government entirely out of touch with local communities."

Notes to Editors:

Research undertaken by the Liberal Democrats shows that 2880 people in Sutton and Cheam collect their pensions or benefits using the Post Office Card Account. 1410 of these people are pensioners.

The Age Concern report findings on Post Offices can be found at: http://www.ageconcern.org.uk/AgeConcern/BBA8F3E6C959416E9437E36F9B00EBD4.asp

Paul Burstow was one of the co-sponsors of a Liberal Democrat motion to Parliament on Monday 16th October 2006, about the threat to the post office network. The motion reads as follows:

That this house believes the Government is putting the future of the Post Office Network and of royal mail at risk by their continued failure to take the tough and overdue decisions needed; further believes that many local post offices have close or are under threat because of the uncertainty over the future of the subsidy to rural post 0ffice after 2008 and the withdrawal of public sector business from the network, including the pension book, the television license, passports and the decision to withdraw the Post office card account when the existing contract expires in 2010; shares Postcomm's concern that over 6500 remaining rural post office branches are vulnerable and could close over the next few years; further believes that the Post Office network provides significant social and economic benefits and can play a key role in tackling financial exclusion and helping rural and deprived urban communities to survive and thrive; further believes the delays in finalising the investment package for Royal Mail is undermining Royal Mail's ability to compete in the postal market following liberalisation last January threatening jobs and Royal Mail's market share; and therefore calls on the Government to end this paralysis in decision-making at the heart of the Government so that the Post Office network and Royal Mail can make the investments they need with greater certainty about a sustainable and stable commercial future.