Saturday 31st May 2008

350 POST OFFICES FACE CLOSURE IF CARD ACCOUNT LOST

SNP MP Mike Weir has warned of a further risk to 350 post offices in Scotland if Post Offices Ltd does not win the contract for the successor to the Post Office Card Account.

The UK Government is currently tendering for a company to run the successor to the Post Office Card Account with the winner to be announced in the summer.

At present 4 million people use the card account who between them make 6.5 million visits to post offices each week accounting for approximately 10% of subpostmasters pay.

The National Federation of Subpostmasters is warning that unless the contract is awarded to the Post Office a further 350 post offices in Scotland will face closure due to loss of income.

Mike Weir, who has campaigned against the post office closure programme said;

"The closure predictions from the Federation of Sub Postmasters are deeply concerning.

"There are real echoes of the decision by the UK Government to withdraw the contract for TV licences from the Post Office. 

"As more post offices were earmarked for closure only this week it is vital the Government ensures those that remain are able to deliver essential services and to remain as viable businesses across Scotland.

"The Card Account is used by many of the most vulnerable and elderly in society, often in our most deprived or remote communities. 

"Retaining core services like POCA is much more likely to ensure the survival of post offices than trying to break into the mortgage market, especially in the current financial climate.

"The UK Government would be shooting itself in the foot to take away yet another key service from the Post Office network."