Government U-turn to help Post Offices

10.27.55am GMT Fri 14th Nov 2008

Annette Brooke MP with local Post Master

After being put under considerable pressure in the House of Commons, the Government has decided to renew the Post Office Card Account contract. If this had not happened at least 3000 Post Office nationally would have been put at risk.

Liberal Democrats in Mid Dorset and North Poole have been campaigning for this decision for a long time. Over 5000 people in Mid Dorset and North Poole have Post Office Card Accounts and would have been affected.

The battle reached a climax in the House of Commons on Monday 10th November. Labour MPs rejected a call, led by the Liberal Democrats, for the Government to carry out more services through Post Offices. The Government faced stiff opposition from the Lib Dems, Conservatives and its own back benchers. It only won the debate on Monday by 38 votes.

Labour initially insisting on an open procurement process. However they have now decided to cancel the procurement exercise and renew the Card Account contract with Post Office Ltd. This contract will run from April 2001 until March 2015, with the possibility of an extension.

Coming just days after the Liberal Democrat Motion in Parliament on Monday, this decision appears to be a direct response. The decision however is 11 months overdue.

3500 Post Offices close while the Conservatives were in Government and so far 4000 have closed under Labour.

Annette Brooke, MP for Mid Dorset & North Poole backed the Parliamentary Motion on Monday. She commented:

"The decision-making process on Post Office Card Account has been a sham and cost an as-yet unknown amount of money. However, at last Labour have seen common sense and stopped undermining our Post Offices.

"The call made by Liberal Democrats in Parliament on Monday was an attempt to stop the damage Labour have done to the Post Office network. Labour voted to throw out that call but have now changed their minds.

"They shouldn't have even considered letting the Post Office Card Account go elsewhere. In taking so long to make this decision the Government has unnecessarily caused a great deal of worry and uncertainty for many communities.

"This is not a success for the Government but a triumph for local Post Office campaigners. I hope the Government will be more sensible and decisive in future."