Defend the Post Office Card Account

8.51.00am BST (GMT +0100) Wed 11th Jun 2008

A message from Sarah Teather, Liberal Democrat Shadow Business Secretary

.

The Liberal Democrats are very keen for the contract for the new card account to be awarded to the Post Office. Only the Post Office has the network to allow people from all over the country to access a card account of this kind. Other competitors have a good coverage in urban areas but not in rural areas, particularly not in the more remote areas of Scotland.

It is essential that people are able to access their savings and benefits over the counter at their local Post Office. Some 4.3 million people throughout the country use the card accounts, including many pensioners. Without access through an organisation they trust, like the Post Office, some may be denied access to their own money.

There is huge frustration that the Government simply does not recognise the social value of the Post Office. Liberal Democrats have consistently and strenuously opposed the Government's plan to close 2,500 branches across the UK this year - on top of the 4,000 they have already closed, and the 3,500 post offices that were closed by the Conservatives. So, while we respect the need to get a competitive deal for the taxpayer by putting the card account out to tender, we believe that protecting the long term viability of the Post Office and avoiding yet more closures should be the Government's priority when they make a decision on the Post Office card account.

The card account contract is worth around £1 billion to post offices between 2003 and 2010. Without that income stream many thousands of branches are likely to be unable to survive. The worst hit will be post offices in rural areas and in poorer urban areas. Quite simply, the people who most need the service of a post office will be most affected

Instead of pulling the rug from under people's feet, the Government should be building on the success of the Post Office card account. We need to find additional services to be provided through post offices, not cut the services that are already provided.

The Government's track record on this issue does not give much cause for hope. In recent years the Department for Culture, Media and Sport have pulled the plug on television license payments at the Post Office, the Home Office has decided not to allow post offices to be involved in delivering passport services, and the Department for Transport is not allowing all post offices to issue driving licences. They have undermined the Post Office's business at every turn.

If the Government terminate the Post Office card account they would further seriously damage the post office network. Far from seeing it thrive, the Prime Minister risks making the destruction of Britain's post office network the most visible part of his legacy.

My parliamentary colleagues and I will continue to speak up for the future of the Post Office network.