MPs in call to save post offices

The MPs say the benefits of post offices to communities may be lost

MPs are calling on the government to protect the Post Office network.

The benefits the Post Office provides to communities could be lost forever if ministers fail to act, a Commons trade and industry committee report says.

It says sub-postmasters feel a "sense of betrayal" over plans such as the scrapping of the Post Office card account - a key source of revenue.

The government says it has invested an "unprecedented" £2bn in the network but there are "major challenges" ahead.

A Department of Trade and Industry spokesman said the network was a "matter of priority".

"We will be announcing shortly a future strategy to provide sub-postmasters with the certainty they need," he said.

Subsidy withdrawal

Earlier this month, a petition with four million signatures was handed in at Downing Street.

The National Federation of Sub-postmasters said the petition called for urgent action to protect rural post offices.

POST OFFICES IN CRISIS Despite subsidies of £150m, post offices lost £111m in 2005 Postcomm estimates 1,500 of 8,000 rural post offices make money 72% of sub-postmasters are uncertain about the future, says Postcomm Revenue from services withdrawn from post offices fell £168m in past year

Tony Blair has said people are changing the way they use post offices and there can be no extra subsidies.

There are more than 14,000 Post Office branches in the UK, roughly divided between rural and urban areas and down from more than 18,000 in 1999.

Campaigners say a further 6,000 are under threat, with the current £150m-a-year subsidy for the rural network due to be withdrawn in 2008.

The government says the 800 smallest post offices are used by an average of 16 people a week.

The cross-party committee says there is a reluctant acceptance that the current network of branches cannot be sustained.

However, it insists that the 4,000 offices suggested by Royal Mail is too few. The committee also says the government may need to put in more money.

'Sense of anger'

The Post Office card account, which is used to access pensions and benefits, is set to be withdrawn.

The Commons trade and industry committee points out that sub-postmasters are already losing income from selling television and driving licences.

Almost 400 MPs have already signed an early day motion calling for the decision to withdraw the Post Office card account to be reversed.

Mr Blair has said the government will look at the options, but argued that more and more people were using bank accounts rather than the Post Office.

Help the Aged said the committee had pointed out the "very real sense of anger" that millions felt.

"The government has presided over a programme of cuts and confusion that has left many older people unable to access a local and easily accessible Post Office," the charity's David Sinclair said.

"A commitment must be made by the government to properly appreciate the social value of services provided by the Post Office," he said.