MPs raise Post Office closure doubts

An influential committee of MPs expresses doubts today over whether the Government's post office closure programme will leave behind a viable national network of branches accessible to virtually everyone in the country.

The Commons Trade and Industry Select Committee says that it needs more detailed information from ministers and the Post Office before it can be sure that the £1.7bn plan to restructure the network is sustainable. Under the plan, 2,500 post offices will close, reducing the size of the network to around 12,000 branches.

The support package involves compensation for those sub postmasters who opt to close and £150m a year in subsidies for the remaining network.

Consultation on the plan closes on Thursday.

But in their report, the MPs say: "It is not clear whether the suspiciously round figure of 2,500 closures was derived from a proper analysis of what was needed to provide a national network, or simply represents the maximum number that could be funded from the resources provided by HM Treasury."

The report also stresses that the Government's proposals set no limit on the number of branches that might still close once all the money in the compensation fund has been used up.

It also says that the criteria for deciding whether a branch closes needs to be applied flexibly. The Government has promised that 99 per cent of the population will still be within three miles of a post office and 90 per cent no more than a mile away.

But in some remote rural areas, the nearest post office could be on the other side of a mountain and yet still comply with the rules on accessibility.

The charity Age Concern welcomed the report, saying it was "extremely worried" that there may be more than the 2,500 closures the Government has announced, making it even harder for old people to get to a post office.

Gordon Lishman, the director general of the organisation, said: "The current plans will see closures based purely on distance and don't allow enough time for local opinions and issues, such as public transport, to be examined."

A spokesman for the Department of Trade and Industry said it recognised the important social and economic role the post office played but with losses running at £4m a week and four million fewer people a week using a post office than two years ago, there had to be a balance between what the taxpayer could afford and the size of the network.