More Post Office Closures Warns Bruce

2.39.14pm BST (GMT +0100) Thu 27th May 2004

Even if some of the 14 post offices scheduled for closure in Aberdeen are reprieved it will not stop further post office closures in the city and rural areas in the future, Gordon Liberal Democrat MP, Malcolm Bruce has warned.

Mr Bruce, who is the Liberal Democrats' Shadow Secretary of State for Trade and Industry has already criticised the Government for stripping the core business away from post offices without giving time for new services to be established.

He has now written to DTI Ministers calling for an extension of the rural guarantee and an explanation as to why the Post Office has not responded to Aberdeen City's request for council tax payments to be handled by post offices.

"The closure of up to 3000 urban post offices this year will not stop the rot," says Mr Bruce. "Short term some business will transfer to neighbouring offices but a lot will be lost altogether and the base business will continue to decline leading to the closure of further branches.

"Rural offices in spite of the rural guarantee are closing at an accelerating rate as sub post masters and mistresses see the business disappear from under them. The guarantee runs out in 2006 and I have written to DTI Secretary Patricia Hewitt to ask if it will be extended.

"The Post Office needs investment to develop new business and the co-ordination of public sector business to secure the future. Post Office management are on the case but the Government is taking away business faster than they can respond.

"One Aberdeen post office has seen child benefit payments fall from 150 to 5 with the loss not only of the transactions business but the other purchases claimants made while in the post office. Banks are now having to help customers with queries previously dealt with by post office counter staff - something for which bank tellers are not necessarily trained.

"The refusal of the main Scottish banks to allow their customers to access their accounts through post offices has further undermined the Scottish network.

"It is nevertheless disappointing that the Post Office have not yet engaged with the City of Aberdeen Council's proposal to follow Aberdeenshire and collect council tax through post offices

"The Post Office's great strength has been its branch network but this is being decimated. Sub PO's cannot be blamed for taking the money when it is offered. Others have seen their business investment undermined. I have asked the Government to reconsider the closure programme and help secure future business for local post offices."