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Government's policy on Post Offices will cost local communities says report

December 5, 2006 3:07 PM
Peter Black and Paul Warren at Laleston Post Office

Peter Black and Paul Warren at Laleston Post Office

The Welsh Liberal Democrat Assembly Member for South Wales West, Peter Black, has called on the Labour Government to rethink its policy of abolishing the Post Office Card Account in 2010 after a New Economics Foundation found that the consequential closure of Post Office branches could take hundreds of thousands of pounds out of the local economy.

Surveys by Mr. Black of local Post Offices in Swansea, Neath Port Talbot and Bridgend have already established that the loss of the card account could force the closure of anything from a third to half of all local Post Offices. The New Economics Foundation Report found that for every £10 earned in income, a post office generates £16.20 for its local economy. Most local businesses suffer a 'significant' impact following a closure and traders noticed a loss of custom in areas affected.

The report notes that eight urban post offices have closed for every rural closure and that one in six urban postal closures had been in a deprived area. Groups affected by closures include schools, local universities, credit unions and community groups as well as the elderly and other local people. As a result of a Post Office closure many local people move their grocery shopping outside of their local community.

"This report underlines everything that I have been saying about the importance of local Post Offices over the last five years or so," said Mr. Black. "This Government has presided over thousands of local Post Office closures and is threatening still more by its proposal to abolish the Card Account."

"Post Offices offer important services to their local area act as a substantial economic driver. This Government policy has the potential to devastate local communities. Post Offices should be given more flexibility to adapt to high street trends. The Government should be investing in local branches, not closing them."

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