Chamber
Plenary, 21 Dec 2006
21 Dec 2006 · S2 · Plenary
Item of business
Post Offices
Post offices are the lifeblood of communities in both rural and urban areas, particularly when they are combined with other services, such as the local shop. However, over the past two decades they have been closing at a rate of more than 300 a year. In many communities in my constituency, the post office is the last remaining service—if we do not count the school—so post offices in my rural communities play a particularly crucial role. They have an existence value in holding communities together by giving them a focal point. They also provide vital face-to-face access to Government, postal and commercial services for communities, most of which no longer have a local bank branch.
According to Postcomm, 90 per cent of rural sub-post offices are unprofitable. It is vital that the true social value of the network is considered, as well as its economic value, when looking at its long-term future.
The sub-post office network has been in steady decline. Sub-post offices often have no value as businesses because of their uncertain future, but the premises from which they are run have a high value as purely private residences. When owners want to retire, they cannot sell their businesses and post offices close. That is exactly what is just about to happen in Old Rayne in my constituency.
The maintenance of a comprehensive network of sub-post offices covering the whole country, right into the most remote and rural communities, depended on the wide range of services that the Government chose to deliver through them. Tragically, the UK Government is washing its hands of the post office network. Its approach has been a combination of neglect and death by a thousand cuts.
The UK Government has directly or indirectly overseen the post office losing television licence, vehicle excise duty and passport authentication work. The transfer of benefit and pension payments to direct payment into bank accounts resulted in a loss of £400 million in income. Although the Government saved money, it had no proper consideration for the wider consequences. How the transfer was done was pretty ruthless too. Postmasters were strictly forbidden to do anything to dissuade their customers from moving to direct payments. That the take-up of the Post Office card account was far greater than the Government expected reflects the difficulties that people face in opening basic bank accounts and the advantages that they see in using the post office. During the period 2003 to 2010, the card account contract is worth £1 billion in income for post offices.
According to Postcomm, 90 per cent of rural sub-post offices are unprofitable. It is vital that the true social value of the network is considered, as well as its economic value, when looking at its long-term future.
The sub-post office network has been in steady decline. Sub-post offices often have no value as businesses because of their uncertain future, but the premises from which they are run have a high value as purely private residences. When owners want to retire, they cannot sell their businesses and post offices close. That is exactly what is just about to happen in Old Rayne in my constituency.
The maintenance of a comprehensive network of sub-post offices covering the whole country, right into the most remote and rural communities, depended on the wide range of services that the Government chose to deliver through them. Tragically, the UK Government is washing its hands of the post office network. Its approach has been a combination of neglect and death by a thousand cuts.
The UK Government has directly or indirectly overseen the post office losing television licence, vehicle excise duty and passport authentication work. The transfer of benefit and pension payments to direct payment into bank accounts resulted in a loss of £400 million in income. Although the Government saved money, it had no proper consideration for the wider consequences. How the transfer was done was pretty ruthless too. Postmasters were strictly forbidden to do anything to dissuade their customers from moving to direct payments. That the take-up of the Post Office card account was far greater than the Government expected reflects the difficulties that people face in opening basic bank accounts and the advantages that they see in using the post office. During the period 2003 to 2010, the card account contract is worth £1 billion in income for post offices.
In the same item of business
The Deputy Presiding Officer (Murray Tosh):
Con
The next item of business is a debate on motion S2M-5349, in the name of John Swinney, on post offices.
Mr John Swinney (North Tayside) (SNP):
SNP
This debate is an opportunity for the Parliament to express its concern about the future of the post office network in Scotland and the sweeping changes that...
Dr Sylvia Jackson (Stirling) (Lab):
Lab
I am pleased to speak in this debate. My constituency is both urban and rural, and constituents, particularly those belonging to the National Federation of S...
Murdo Fraser (Mid Scotland and Fife) (Con):
Con
I welcome the debate. As we have heard, the future of the rural sub-post office network is a vital issue for much of Scotland. I appreciate that support for ...
Christine Grahame (South of Scotland) (SNP):
SNP
Given what the member has just said, and given the impact of the issue on vulnerable communities, does the member not find it quite disgraceful that not a si...
Murdo Fraser:
Con
Christine Grahame makes a fair point. The motion and the Labour amendment refer to the Scottish Executive but no one is here to represent the Executive's vie...
Dr Jackson:
Lab
Will the member give way?
Murdo Fraser:
Con
I would like to make some progress, if I may. The Labour Government uses as its excuse for those closures the fact that post office revenue has declined. The...
Mr Duncan McNeil (Greenock and Inverclyde) (Lab):
Lab
Will the member take an intervention?
Murdo Fraser:
Con
I am afraid that I am in my last minute, Mr McNeil. The Government introduced the Post Office card account then pledged to discontinue it but, in the teeth o...
Euan Robson (Roxburgh and Berwickshire) (LD):
LD
The future of our post offices is an important, although reserved issue. Research by the Liberal Democrat party indicates that between 1999 and this year, ju...
Murdo Fraser:
Con
Is it still Liberal Democrat policy to privatise the Post Office?
Euan Robson:
LD
It is not and never has been Liberal Democrat policy to privatise the Post Office, and Mr Fraser is clearly mistaken in his view that it was.The UK Governmen...
Carolyn Leckie (Central Scotland) (SSP):
SSP
It is important to place the debate in context, including a political context. The Central Scotland region lost a total of 19 post offices in the most recent...
Richard Lochhead (Moray) (SNP):
SNP
I am delighted that the SNP has chosen to debate this vital issue, but I am extremely disappointed that ministers have chosen to be absent. That shows contem...
Mr Duncan McNeil (Greenock and Inverclyde) (Lab):
Lab
Presiding Officer, if you will indulge me, I will welcome to the Parliament the pupils from Earnhill primary school in my constituency. I am sure that everyo...
Mr Swinney:
SNP
Look behind you!
Mr McNeil:
Lab
How would the story go if the fairy godmother across the Thames—possibly played by Ian Krankie, with Jimmy Krankie as Nicola—waved her magic wand and made Sc...
Mr Mark Ruskell (Mid Scotland and Fife) (Green):
Green
I am grateful to the SNP for giving us another opportunity to discuss in the chamber the future of the post office network.The motion that we are debating re...
Nora Radcliffe (Gordon) (LD):
LD
Post offices are the lifeblood of communities in both rural and urban areas, particularly when they are combined with other services, such as the local shop....
Richard Lochhead:
SNP
If the Liberal Democrats take the issue so seriously, why are their ministers absent from today's important debate?
Nora Radcliffe:
LD
That is not worth answering.The UK Government will not extend its card contract beyond 2010, claiming that it never intended to renew the POCA contract. That...
The Deputy Presiding Officer (Trish Godman):
Lab
You should finish now, Ms Radcliffe.
Nora Radcliffe:
LD
Post offices play a crucial role in the community, particularly in rural areas, and must be protected. Much could and should be done to maintain a unique net...
Ms Rosemary Byrne (South of Scotland) (Sol):
Sol
I welcome the debate, which provides an opportunity to discuss the future of the post office network.Over the past few months I have visited a number of sub-...
Alasdair Morgan (South of Scotland) (SNP):
SNP
One of the roots of the problem is that there has been not a lack of Government support but a lack of consistent Government support for the post office netwo...
The Deputy Presiding Officer:
Lab
We move to winding-up speeches. Carolyn Leckie has a tight four minutes.
Carolyn Leckie:
SSP
I will do my best to stay within that time.I want to pick up on issues that I did not have time to talk about earlier. A big argument, on the wider impact of...
The Deputy Presiding Officer:
Lab
You should be finishing now, Ms Leckie.
Carolyn Leckie:
SSP
What is the position of Labour MSPs? None of them has commented on that. Will Labour members support the position of the 39 Labour MPs who opposed the franch...