Further blow to local post offices in the offing?

10.43.29am GMT Mon 10th Nov 2008

Local Liberal Democrat Parliamentary Candidate Mike Bell has today claimed that the Government is set to deliver another hammer blow to the Post Office network.

He believes Ministers are set to make a delayed announcement awarding the new Post Office Card Account contract to PayPoint, who recently won the contract for television licensing.

Mr Bell, who campaigned to save local post offices, said: "Post Office Limited will lose their core banking business to PayPoint when the announcement is made.

"This will be a second hammer blow for the post office network following recent forced closures of six local branches.

"Local sub-postmasters tell me that up to 25% of their income is generated from the Post Office Card Account. Without this income thousands more branches across the country could be forced out of business.

"Over four million customers use POCA, with 3.7 million receiving their benefits and pensions at their local post office counter.

"Many customers in rural areas do not have access to a high street bank or to a PayPoint.

"Just five years ago, Government described POCA as the "cornerstone" of the Post Office's new banking products. Now, in a move of breathtaking hypocrisy, they look set to award the contract to the cheapest outside bidder.

"The Royal Mail Group's half-yearly results showed that Post Office Limited has generated a profit in the first half of 2008/9, reversing a long term loss-making trend.

"This surely suggests that the POCA is a financially viable service sitting within post offices themselves. Once again, the best interests of dependent customers will be betrayed for the bottom line.

"Giving the contract to PayPoint could prove to be the final nail in the coffin for even more local post offices."