Chamber
Plenary, 06 Dec 2006
06 Dec 2006 · S2 · Plenary
Item of business
Rural Post Offices
I thank John Swinney for bringing this important debate to the Parliament this evening.
Post office closures have a significant knock-on impact on local communities, hitting firms, community groups and schools. That goes for all post offices. It is easy to see how important rural post offices are to local communities, but we have research that quantifies the importance of urban post offices, too. A study undertaken by the New Economics Foundation in Manchester found that a post office saved small business £275,000 a year, compared with the extra cost of visiting sites further away. For every £10 earned in income, post offices generated £16.20 for the local economy. Each one contributed around £310,000 to the local economy every year. The study also noted that many sub-postmasters in disadvantaged areas perform a social services role by keeping an eye on dozens of vulnerable customers. I know that sub-postmasters in Falkirk East perform that role. I have no doubt that the findings for urban and rural post offices in Scotland would be similar.
However, post offices are under attack. Their economic viability is being undermined by the transfer of services to other organisations. Post buses—the only public transport for many rural communities—are threatened. I have heard of cases of post bus services being stopped without notice to or consultation with the local community, which is not good enough. The loss of television licence revenue has had a major impact. Now the Post Office card account is threatened. The success of the card has shown that there is a high demand for the post office network to provide an alternative to local banks. There is no local bank in many of the communities that I represent and in other communities. The Post Office card account is currently used by 3.5 million people. We should allow the Post Office to be the sole supplier of a replacement for the account with far greater accessibility for all, which would increase access to banking services.
The post office network should be supported as an important business, as an institution that is important to other businesses and as a means of tackling social exclusion. Post offices and sub-post offices are vital and are at the heart of many communities. This is an important debate. I echo calls for the Scottish ministers to lobby Westminster ministers on behalf of sub-post offices and post offices throughout the network.
Post office closures have a significant knock-on impact on local communities, hitting firms, community groups and schools. That goes for all post offices. It is easy to see how important rural post offices are to local communities, but we have research that quantifies the importance of urban post offices, too. A study undertaken by the New Economics Foundation in Manchester found that a post office saved small business £275,000 a year, compared with the extra cost of visiting sites further away. For every £10 earned in income, post offices generated £16.20 for the local economy. Each one contributed around £310,000 to the local economy every year. The study also noted that many sub-postmasters in disadvantaged areas perform a social services role by keeping an eye on dozens of vulnerable customers. I know that sub-postmasters in Falkirk East perform that role. I have no doubt that the findings for urban and rural post offices in Scotland would be similar.
However, post offices are under attack. Their economic viability is being undermined by the transfer of services to other organisations. Post buses—the only public transport for many rural communities—are threatened. I have heard of cases of post bus services being stopped without notice to or consultation with the local community, which is not good enough. The loss of television licence revenue has had a major impact. Now the Post Office card account is threatened. The success of the card has shown that there is a high demand for the post office network to provide an alternative to local banks. There is no local bank in many of the communities that I represent and in other communities. The Post Office card account is currently used by 3.5 million people. We should allow the Post Office to be the sole supplier of a replacement for the account with far greater accessibility for all, which would increase access to banking services.
The post office network should be supported as an important business, as an institution that is important to other businesses and as a means of tackling social exclusion. Post offices and sub-post offices are vital and are at the heart of many communities. This is an important debate. I echo calls for the Scottish ministers to lobby Westminster ministers on behalf of sub-post offices and post offices throughout the network.
In the same item of business
The Deputy Presiding Officer (Murray Tosh):
Con
The final item of business is a members' business debate on motion S2M-4876, in the name of John Swinney, on a threat to the rural post office network in Sco...
Motion debated,
That the Parliament notes the public concern over the future of the rural post office network in Perthshire, Angus and other parts of rural Scotland; notes t...
Mr John Swinney (North Tayside) (SNP):
SNP
I thank the many members who signed my motion and the Parliamentary Bureau for facilitating an important debate about the future of services in rural Scotlan...
John Swinburne (Central Scotland) (SSCUP):
SSCUP
Does the member agree that it is not only rural post offices that are at risk, but the whole network of post offices across the country, which is under inten...
Mr Swinney:
SNP
Mr Swinburne makes a fair point. I will say something about the business viability of post offices being jeopardised.Due to the limitations of transport in r...
The Deputy Presiding Officer:
Con
There is a very long list of members who wish to speak in the debate. I will discuss with the minister whether we might have a brief extension. However, ther...
Nora Radcliffe (Gordon) (LD):
LD
I congratulate John Swinney on instigating this timely debate. At a presentation on 30 November, Tom Begg, the chairman of Postwatch Scotland, said that rura...
Tricia Marwick (Mid Scotland and Fife) (SNP):
SNP
Will the member give way?
The Deputy Presiding Officer:
Con
The member is almost at the end of her time.
Nora Radcliffe:
LD
The report continues:"If the country wants a comprehensive network of Post Offices to continue, a more explicit funding mechanism must be put in place, toget...
The Deputy Presiding Officer:
Con
Can you wind up please?
Nora Radcliffe:
LD
There are many things that could and should be done to maintain a unique network that is a valuable asset. If we do not use it, we will lose it and, if we lo...
Roseanna Cunningham (Perth) (SNP):
SNP
I congratulate my colleague John Swinney on securing tonight's debate. On 22 September in Birnam, he and I sat at a packed meeting with sub-postmasters from ...
Murdo Fraser (Mid Scotland and Fife) (Con):
Con
I congratulate John Swinney on securing a debate on what is an important matter for the whole of rural Scotland.I appreciate that support for sub-post office...
Cathy Peattie (Falkirk East) (Lab):
Lab
I thank John Swinney for bringing this important debate to the Parliament this evening.Post office closures have a significant knock-on impact on local commu...
Mr Andrew Arbuckle (Mid Scotland and Fife) (LD):
LD
I thank John Swinney for securing this debate. It is significant that a large number of MSPs from across the political divide are attending and want to speak...
Rob Gibson (Highlands and Islands) (SNP):
SNP
I thank John Swinney for securing the debate.It is clear to me that we need to have joined-up thinking in our own back yard before we make a case for it to L...
Mr Mark Ruskell (Mid Scotland and Fife) (Green):
Green
I thank John Swinney—the man who has had more members' business debates than the entire Scottish Green Party in the second session of the Parliament—for secu...
Richard Lochhead (Moray) (SNP):
SNP
My last members' business debate earlier in the year was on the subject of the future of Post Office card accounts and the future of our post office network,...
Mr Jamie Stone (Caithness, Sutherland and Easter Ross) (LD):
LD
I offer John Swinney my warmest congratulations on securing the debate. I am sure that it will worry him that I agree with every word he said.If we were to c...
Mr Jamie McGrigor (Highlands and Islands) (Con):
Con
I congratulate John Swinney on securing the debate and, like Jamie Stone, agree with every word that he said. As another MSP for the Highlands and Islands, I...
The Deputy Presiding Officer:
Con
Before I call the next speaker, I am minded to accept a motion without notice to extend the debate by 10 minutes.
Motion moved,
That, under Rule 8.14.3, the debate be extended until 6.04 pm.—Mr John Swinney.
Motion agreed to.
Alasdair Morgan (South of Scotland) (SNP):
SNP
I congratulate John Swinney on securing this debate, but the problem with debates on post offices is that we have to revisit the issue so often. If, as Jamie...
Euan Robson (Roxburgh and Berwickshire) (LD):
LD
I, too, congratulate John Swinney on securing this debate.The pre-1997 UK Government had the unhappy record of overseeing the closure of 3,500 local post off...
Stewart Stevenson (Banff and Buchan) (SNP):
SNP
Rural communities are at the heart of the debate. I have the privilege of representing one of the three parliamentary constituencies in Aberdeenshire, where ...
The Deputy Minister for Environment and Rural Development (Rhona Brankin):
Lab
I, too, am pleased that John Swinney has given us the opportunity to discuss further the important subject of rural postal services. I have rural postal serv...