'More post offices could close'

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The Business and Enterprise Select Committee said it welcomed Government intentions to keep the network at 11,500 branches between now and 2011, but MPs added that they were concerned the Post Office did not believe it was possible to set a minimum number of outlets.

Committee chairman Peter Luff said there could be a further 4,000 closures, mainly if subpostmasters retired and were not replaced.

"There could be no compulsion to replace subpostmasters who retire," Mr Luff said.

The report noted that the Post Office had estimated a network of around 7,500 would meet the national criteria for access to branches, although Government funding and the company's business case were both based on the number of outlets remaining at 11,500 after the current closure programme is completed later this year.

The MPs claimed that consultation on post office closures had been "rushed", adding that problems remained even though the process had improved.

"We do not think it is satisfactory simply to accept that the network may continue to shrink in an unplanned way between now and 2011.

"Post Office Ltd should be obliged to use its best endeavours to keep the network at a minimum of 11,500 fixed outlets," said the report.

A Post Office spokesman said: "It remains absolutely the case that the size and shape of the post office network is dictated by the level of Government funding and that what the Government has asked the Royal Mail chairman to do is simply to undertake a final review of a small number of individual branch closures - only one such review has taken place with the outcome being to retain the branch."