Peter Black and South Wales West Liberal Democrats

Post Offices

Peter Black: I propose amendment 2 in the name of Kirsty Williams. Add as new point at end of motion: calls on the Assembly Government to make it an immediate priority to reopen the post office redevelopment fund.

Post offices are of great social importance to local communities in the rural, urban and Valleys areas of Wales. They function as a focal point and provide valuable services for many people, especially the elderly and the more vulnerable members of society, and those who have difficulty in getting around due to health reasons or a lack of transport. Post offices are of great importance, especially in rural areas and areas of social deprivation.

We have all spoken those words many times in the past, yet post offices still face grave financial pressures, and the long-term future of the network remains unclear. As we have heard, the UK Government is intent on closing another 2,500 post offices, having already closed nearly as many as part of the urban reinvention programme. Post offices have lost a number of transaction services, including the TV licence contract and benefit payments. Furthermore, the UK Government's plans for the UK Passport Agency means yet more loss of business and revenue. It appears that the Post Office is slowly but surely being deprived of the functions and business that makes it a viable concern-it is death by a thousand cuts.

The policies of the UK Labour Government are putting the future of post offices at risk. Many of these businesses are in our most deprived communities. The Government needs to reconsider its policies, recognise that post offices have a valuable social function, and give them more business, rather than taking business away from them. Both the UK Government and the Welsh Assembly Government should invest in the post office network to ensure post offices' survival as sustainable community businesses, providing vital services to local people, especially in deprived and isolated areas. We need to stress, as Mark did, that this is not just about a business, but a social necessity-the post office is a social lifeline for many people.

The post office network is a pillar of community infrastructure. It provides valuable services in areas where other businesses might not choose to set up. With that in mind, the Liberal Democrats want the UK Government to introduce a new legal requirement for it to maintain the post office network in both rural and urban areas.

The post office development fund set up by the partnership Government assisted 106 post offices to remain open between 2002 and 2004. In total, it provided £4.1 million in support. The fund was established to help post offices in Wales's most deprived areas and isolated communities to stay open and to become more accessible. Postmasters in eligible areas were invited to apply for a grant of up to £50,000 to renovate their post offices, and to widen the range of services and products offered to their customers. That gave a vital boost to the post office network in Wales, and we want to see the fund reopened, so that that network can be maintained in both rural and urban areas.

Amendment 2 calls on the Welsh Assembly Government to make it an immediate priority to reopen the post office redevelopment fund. We are aware that 'One Wales' contains a commitment to doing so, but, when questioned, the Minister has evaded giving a date for its reintroduction, talking instead about the importance of considering UK Government actions.

That is not good enough. Post offices need assistance now. They need to plan for the future. It is no good waiting to see what the UK Government will do about social network funding, when the rural network funding ceases in 2008. Post offices, like all enterprises, need to be able to plan for the future, and to have confidence in the future. The Welsh Liberal Democrats urge the Welsh Assembly Government to give hope and confidence in a viable, sustainable future for post offices to postmasters across Wales by reopening this development fund and lobbying the UK Government aggressively on maintaining assistance for post offices, and to ensure that the successor product to the Post Office card account is in place before the Post Office card account comes to an end in 2010.

As I said, the Post Office card account is due to expire in 2010. Thanks to opposition, the Department for Work and Pensions has announced its intention to develop a successor product. That is welcome, but the UK Government's track record on the Post Office hardly inspires confidence. The Post Office card account is important for several reasons. It enables those without a bank account to access benefits and pensions in a manner convenient for them. It also represents a significant chunk of post offices' business, at a time when many post offices across Wales are already struggling. More closures will be inevitable if a successor product is not developed and made effective.

The impact of those closures will be felt not just by the local people who use the post office, but also by adjacent businesses. I urge Members to support the amendment.