Ministers accused as 2,500 Post Office closures confirmed

Tories today accused the Government of "decimating" the Post Office network as the closure of 2,500 post offices was confirmed in the Commons.

Tories today accused the Government of "decimating" the Post Office network as the closure of 2,500 post offices was confirmed in the Commons.

Trade and Industry Secretary Alistair Darling said ministers were determined to maintain a national network.

But losses were running at almost £4 million a week - double the amount two years ago - and this was "unsustainable".

The closures will be implemented over an 18-month period starting from this summer with final decisions taken by Post Office Ltd.

Tory spokesman Alan Duncan said the statement confirmed people's worst fears "that our post office network is about to be decimated".

He said the Government already held the record for closing post offices faster than any previous administration and this process would now be accelerated.

By the next election the Government would have closed over one third of the entire Post Office network.

Mr Darling told MPs: "The Government is determined to maintain a national post office network allowing people to have reasonable access across the whole country."

Although about 2,500 branches would close, ministers would guarantee " reasonable access" in both urban and rural areas, with "additional protection" for more deprived urban areas and some remote rural areas.

The Government had invested £2 billion since 1999 to support the network and would provide a further £1.7 billion to 2011.

A compensation package will be available for Post Office staff wanting to quit.

Mr Duncan said nothing much seemed to have changed since the Government published its proposals for consultation in December.

"It confirms many people's worst fears that our Post Office network is about to be decimated.

"This Government already holds the record for closing post offices faster than any other.

"Today's announcement amounts to an acceleration of that rate of closure, shutting a further 2,500 branches over the next two years."

Mr Duncan said that 2,500 post offices were compensated closures, but there was no guarantee offered that other post offices would not close as well without that compensation.

"This is actually a programme for compulsory closures," he said. "The design of this scheme means that even successful post offices may close just because of their geography."

And he went on: "This statement signals the near certain death of the village post office."

Mr Duncan pointed out that it was five months since the original statement saying that 2,500 post offices would be closed.

"Yet, you haven't even told us which ones are for the chop."

He urged that the closures were not carried out in such a way that they set post office against post office.

"What this statement really means is the closure of more than one-third of the post office network under this Government."

It would mean that many villages would lose their only shop, with no account taken of the elderly and the disadvantaged.

"This announcement is a counsel of despair and the decimation of a network on which so many people depend."

Mr Darling taunted Mr Duncan by saying that he might have received a copy of the statement in advance, but that did not mean to say he had read it.

The Minister spoke about the post office's new product, broadband which he said was an example of where the post office was going out to find new business.

"The objective is to make sure that in each area the right post offices are in the right place. Some of the problem is that two post offices compete for a small amount of business in the same area."

Mr Darling said it was astonishing that in the five months since the original statement was made on this issue, the Conservatives still had no answer to the problem.

"Something had to be done about this problem. We are prepared to do it and to make money available."

For the Liberal Democrats Susan Kramer sought a commitment that no more Government business would be withdrawn from post offices.

And she said it was outrageous that there would be no consultation on the closure of crown post offices, but only on what facilities would be available instead.

She also warned that many village communities would lose their one remaining shop.

Mr Darling said they wanted to ensure that in urban and rural areas there was reasonable access.

They wanted a coherent national network, giving an opportunity for post offices to compete for Government and other business.