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Post office closures mean short term savings and long term losses

17 May 2007

The Government will save some money but lose a valuable part of the rural services network. This is the verdict of CPRE [1] on today’s (Thursday) announcement from Alistair Darling on the future of the post office network [2].

‘The case for supporting, rather than shutting rural post offices is a strong one and the Government’s tinkering round the edges of their proposals [3] clearly shows they realise this,’ said Emma Marrington, CPRE’s Rural Policy Campaigner.

‘But despite buying a bit more time for the existing network, and acknowledging the complexity of local circumstances, in the end, many post offices will close.  For many rural communities and the people that visit them on holiday, life will be made more difficult and communities will be put under greater strain,’ she continued.

Two particularly damaging effects of the closures will be:

· a reduction of outlets for local produce, just when the Government is encouraging an expansion of local food production and small rural businesses [4];

· a big increase in the number of road miles caused by forcing many rural residents and those on holiday in the countryside to drive further to use post office services [5].

‘This is a false economy.  CPRE will support innovative responses to this damaging decision, whether from local businesses or local government,’ [6] Emma concluded.

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NOTES FOR EDITORS
 
1. CPRE, the Campaign to Protect Rural England, is a charity which promotes the beauty, tranquillity and diversity of rural England. We advocate positive solutions for the long-term future of the countryside. Founded in 1926, we have 60,000 supporters and a branch in every county. President: Sir Max Hastings. Patron: Her Majesty The Queen.

2. The Department of Trade and Industry’s announcement on the future of the post office network can be read at: http://www.gnn.gov.uk/environment/fullDetail.asp?ReleaseID=285219&NewsAreaID=2&NavigatedFromDepartment=False

3. The Government now plans to invest up to £1.7 billion to support the network and keep it national.  This subsidy will continue until 2011.  Post Office Ltd will consider access criteria in each of the 2,800 postcode districts and local consultations will be carried out by Local Authorities, Postwatch and Subpostmasters. Factors such as public transport, local demographics and the impact on local economies will be considered in the consultations.  More information can be found on the link to the DTI announcement.

4.  Extract from CPRE’s recent publication on local food The Real Choice: ‘The Government set up funding for the Post Office Card Account, enabling customers to continue to withdraw their pensions at the post office and also to use a variety of banking services. The Department for Work and Pensions has now decided not to renew the Card Account contract in 2010, despite the anticipated damage to the viability of local post offices. This would have a serious effect on the lives of pensioners and others who depend on this service. Post Office Card Account customers would have to travel to their nearest bank, often many miles away, drawing custom away from small local shops and increasing private car use, with all the associated harm to the environment. This would increase deprivation in some already seriously disadvantaged areas.

5. CPRE has made a conservative estimate of 30-40 million more road miles a year that would be caused by closing 2,500 post offices.  This calculation is based on the number of stores closing, greater distances travelled and number of customer visits per week.

6. The Local Government Association have called for plans to be drawn up to help Local Authorities safeguard the services run by the post office network.  This includes supporting initiatives such as running post office counters from public buildings such as civic centres, libraries and leisure centres.  Read their suggestions: http://www.lga.gov.uk/PressRelease.asp?lSection=0&id=SX9953-A7843735.  Communities are also saving their local post offices by integrating them into existing local services such as pubs and churches.

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