NO-ONE in Tavistock likes to see Post Offices closing, but as a society we are using them a lot less as more and more services are available online. Eight out of ten pensioners now have their pension paid into a bank account. Among new retirees, the figure is nine out of ten. One million people a month renew their road tax online — a service that didn't even exist a few years ago. And about three quarters of the population have one or more direct debits to pay bills. As a result, the Post Office has been losing custom and losing money. There are about four million fewer customers a week compared with a few years ago and the network loses half a million pounds a day. In fact, if it wasn't for subsidy put in by the Government, thousands more branches would be under threat. However, the Government does not believe the Post Office is just a commercial network. That is why we have subsidised it to keep open non-commercial branches — which amounts to £150m a year, part of an overall funding package of £1.7 billion going in to the Post Office network over the next few years. There was no subsidy at all under the last government. I know that no one wants to see any closures but it is important to remember that the vast majority of most Post Office branches will be unaffected — even after the closures are complete, there will still be around 11,500 Post Offices. The future for the Post Office network cannot be about turning the clock back and wishing away the changes in technology and communications that have taken place in recent years — changes that most of us have taken part in, in one way or another. It must be about developing new products and services which attract custom and about ensuring the viability of the network which remains after the current closures. That's the priority for the future.
Pat McFadden Minister for Employment Relations and Postal Affairs