Norwich Liberal Democrats Online

UPDATE! Council backs Post Office Plan

Norwich City Council has unanimously backed Liberal Democrat proposals to help local post offices.

The Lib Dem motion, passed at this week's full council meeting, focused on saving the POCA (Post Office Card Account) contract and investigating the possibility of offering council services and other commercial opportunities through the post office network.

The council began by expressing its disappointment at the closure of city post offices. As Lib Dem Thorpe Hamlet Councillor Joyce Divers said "I am bitterly disappointed that the Rosary Road Post Office is to close. I know what a good service it provides to the local community and I can not see how the government can justify its closure."

The Lib Dem motion concerned the future viability of post offices. Eaton Ward Councillor Judith Lubbock who proposed the motion said "Regrettably we have to accept the current closure programme and look to the future to see what can be done now to protect the post office network which remains. I am pleased that Norwich City Council will consider the wider community needs and will be looking to see what council services and payments can be offered through the local post offices. It is only by ensuring future business that we can hope to prevent further closures.

"We are also calling on the Government to do the same - look to see what additional services could be provided at branches, especially with regard to the POCA. It is essential that the second contract for this Post Office Card Account is awarded to the Post Office because it not only makes the Post Office more viable but by awarding it to the Post Office there is better accessibility for its users."

The Post Office Card Account was set-up in 2003 when the Government forced pension and benefits claimants to receive payments via a bank account. Those who did not or could not set up a bank account, were given the option of a Card Account, similar to a very basic bank account. The contract for the accounts was given to the Post Office for 2003-2010. The contract is worth £1 billion to the post office network (2003-2010) and of the 24 million visits made to post offices every week; 6.5 million are made by POCA customers. The government has put the POCA contract up for competitive tender and there are fears that Post Office Ltd will lose out to a rival bidder. According to the National Federation of Sub-Postmasters the lose of the POCA contract could lead to the closure of a further 3,000 post offices.

The motion, passed last night, means that the council will lobby the government to offer the POCA contract to Post Office Ltd. The motion also means that the Council's Scrutiny Committee will investigate which council services could be offered through the post office network. The Committee will look at what Essex County Council is doing and investigate the feasibility of offering services like council tax payments, benefit claims and applications for bus passes through the network. The Lib Dems would like to give post offices more commercial freedom to explore new business areas and the party believes the network could become a 'one stop shop' for a range of government services and be used to assist public consultation exercises.

The full motion unanimously passed by council was

Council notes:

Post office network income from government services fell by £168m in 2005/06

The government has withdrawn key services from the Post Office including pensions, TV licences and passports

The contract for the Post Office Card Account (POCA), worth £1billion to the post office network between 2003 and 2010, will undergo a competitive tender process with the result expected this summer

Of the 24 million visits made to post offices every week, 6.5 million are made by POCA customers

Our post offices provide a lifeline to many in Norwich and this social value must be taken into account by the government

Failure to address the decline of the post office network and the loss of POCA could lead to further branch closures on top of those already proposed in Norwich Council: 24 June 2008

The second contract for POCA is necessary, but not sufficient, to safeguard the future of the post office network

There is a possibility of delivering council services through the post office network

Council resolves:

To ask the Scrutiny Committee to consider which council services may be delivered or made available through local post offices and for the council to enter into negotiation with Post Office Ltd

To write to the Prime Minister and demand: -

• A review across government departments of services offered through post offices with a view to providing additional services at branches
• That the importance of the post office network is taken fully into account when the second POCA contract is awarded
• A commitment that the post office network will not be allowed to shrink below the 11,500 that will remain when the current network change programme is complete.

More information on the POCA campaign can be found here http://www.nfsp.org.uk/POCA_Campaign.asp