Fight To Save Post Offices Will Be Bloody - Davey

5.55.52pm BST (GMT +0100) Wed 18th Oct 2006

The Liberal Democrats have placed themselves at the head of a nationwide campaign to save Britain's Post Office network, following the Government's failure to take the tough decisions necessary to save our Post Office and Royal Mail services.

It comes as the National Federation of SubPostmasters (NFSP) will lobby Parliament and deliver to Downing Street a record petition in support of the Post Office Network, signed by four million people.

Commenting, Liberal Democrat Shadow Trade and Industry Secretary, Edward Davey MP said:

"The Government has presided over a decimation of the post office network. Now it seems their solution to 'stabilise' the Post Office will involve thousands more branch closures, bringing hardship and financial exclusion to millions.

"We are the only party to propose a viable, forward thinking and long term solution that will protect the Post Office network.

"I congratulate the NFSP for its campaign on this crucial issue and the record number of signatures on their petition.

"I am delighted with the level of cross-party support we received for the Liberal Democrat opposition day debate on Monday in support of the Post Office and Royal Mail networks.

"I look forward to attending and speaking at the lobbying event and will commit the Liberal Democrats continued support for the campaign."

ENDS

Notes to Editors

In an interview with the Financial Times, Alistair Darling said he was "determined to give the Post Office certainty...we've got to put it on a long term stable footing". According to senior government figures Alistair Darling will warn MPs that the status quo is not an option.

Postcomm in its press release accompanying the publication of their annual report issued on 12 October 2006 said "Postcomm, the independent regulator for postal services, today urged the Government to make the tough and overdue decisions needed to plan the future of the Post Office network. The Government must take into account the wider social role played by Post Offices in local communities as well as the imperative of establishing a sustainable, stable business."

Age Concern said on the publication of their Rural Post Offices Report on 27 September 2006 that "Thousands of pensioners risk being cut off from their community unless the Government steps in to rescue rural post offices, warns a new report published today by Age Concern."

Decisions which the Government has presided over that have a detrimental impact on the Post Office network include: withdrawing the Post Office Card Account in 2010, removing passport and TV licences from Post Offices, refusing to make a decision on the Social Network payment after 2008, not releasing necessary investment funds of up to £1.3Bn announced in May or to address the proposals by Royal Mail for an Employee Share Trust.

The Liberal Democrats are the only party to have a coherent policy that will secure the future of both the Royal Mail and the rural and urban Post office network:

First, we would separate Post Office Ltd - who oversee the sub-post offices - from Royal Mail. We would keep Post Office Ltd fully in the public sector, helping retain key Government contracts. By separating them from Royal Mail, local post offices would be free from current restrictions on developing new business with other mail companies, and could, for example, exploit growing internet shopping.

Second, we would free Royal Mail to borrow on the capital markets, just like its competitors. Rather than the taxpayer having to shell out for new machines for Royal Mail, as Ministers are proposing, we think that investment should be done on commercial lines. To free Royal Mail from Treasury rules so it can invest, we would establish a new share ownership structure for Royal Mail. The Government and a John Lewis style employee trust would together own 51% of the shares. That means the employees would, for the first time, be given a share in the business they work so hard for. Then, half of the remaining shares would be offered for sale to small investors and individual employees with the rest being offered for sale to the market.

Third, we would make a huge investment into the Post Office Network itself. Using the money raised from the sale of 49% of Royal Mail shares we could invest an estimated £2 billion - without asking the taxpayer for a penny. For the first time for decades, local sub-post offices would have a future. This Liberal Democrat investment fund would focus on helping sub-postmasters and mistresses build long term viable businesses. It would offer start up and investment capital, business training, IT development and marketing support. For the first time for decades, we could see the number of sub-post offices increasing, with new sub-post offices opening.