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Labour's proposals on Post Offices are too little too late - Black

November 12, 2008 12:00 AM

Proposals by Business Secretary Lord Mandelson to create an expanded role for post offices as part of the government response to the financial crisis are too little too late according to Welsh Liberal Democrat Social Justice Spokesperson, Peter Black.

Lord Mandelson has proposed making use of the Post Office Network and its 24 million customers each week to create a People's Bank. He believes that this will help support the remaining Post Office branches and make them more viable. However, although he welcomes the initiative, Mr. Black says that the way Labour have destroyed the Post Office network means that it may be too little too late.

"Lord Mandelson's conversion to Liberal Democrat policy is gratifying, but it will be meaningless if he subsequently awards the Post Office Card Account to another provider," said Mr. Black. "4,000 Post Offices have been closed by Labour since 1997. If they do not win the contract for the Post Office Card Account then another 2,500 will go bust."

"Lord Mandelson is trying to rebuild the Post Office business on shifting sand. Nearly £200 million worth of Government business has been taken off the Post Office network in recent years, the Post Office Card Account is under threat and communities have been undermined by closures. If he is serious about putting saving the Post Office then he needs to address those issues as well."

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