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MPs condemn Post Office management
09 January 2007
The Trade and Industry Select Committee detailed a number of concerns about the postal network and called on the Government to do more to increase competitiveness, rather than just "managing decline".
The MPs called for a rethink on aspects of Post Office closure plans, adding that more time was needed to consult the public before a branch closed.
The report was published as the Royal Mail faced the threat of the first national strike by postal workers in more than a decade in a row over pay. The Communication Workers Union is threatening industrial action after its members overwhelmingly backed strikes after rejecting a 2.5% offer.
The select committee said the Government was placing more responsibility on the Post Office, "the very body that has consistently failed to show sufficient imagination or entrepreneurial flair in developing services so far, or properly to understand the realities of managing a network of often very small businesses".
The MPs said it was difficult to see how the profitability of the postal network can be significantly improved, adding: "Under its new management, Post Office Ltd seems to be awakening from its lethargy, but we think the Government has a responsibility to ensure that Royal Mail Group as a whole gives proper attention to increasing the competitiveness of the network rather than just managing its decline."
Committee chairman Peter Luff said: "The post office network cannot be left as it is, with low morale among sub postmasters and the likelihood of significant numbers of closures which leave gaps in provision.
"We therefore welcome the Government's determination to establish a comprehensive national network. However, we want that network to be sustainable, and we are yet to be convinced that either the Government or Post Office Ltd has thought through what to do in the event of future closures, and how to make post offices more profitable and less dependent on continued public subsidy.
"Without this, there is a real danger that we will be faced with an inadequate network within a few years."
Around 2,500 post offices are set to close by the end of next year under changes announced by the group.
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