Post Office Services: Burncross — House of Commons, 2017-10-30
Topic: Government Operations
Margot Cathleen James (Conservative, Centre-right): I congratulate the hon. Member for Penistone and Stocksbridge (Angela Smith) on securing this debate on post office services in Burncross and for the hard work that she has done in trying to secure their continuation. She has clearly set out the importance of post office services to her community and I fully appreciate the concerns that she has raised The Government recognise the important social role that post offices play in communities across the country, and that is why we will have provided nearly £2 billion to maintain, modernise and protect a network of at least 11,500 branches across the country, far from all of which are profitable. Today, the 11,600 post office branches in the UK form the most stable network that the Post Office has enjoyed for some time. That is because the Post Office is transforming and modernising its network, thanks to that investment from the taxpayer, which has enabled the modernisation and transformation of more than 7,000 branches The network is at its most stable for a generation, and customer satisfaction has remained high. I understand that apart from the critical problem in this particular area, the hon. Lady’s constituency has benefited from four out of its 15 branches now opening on a Sunday and almost 1,000 additional opening hours a month—[Interruption.] I understand that that is no comfort to the particular constituents she has mentioned, and I will come on to address the points that she made about that locality Post offices are crucial to the many millions of customers, including hundreds of thousands of small businesses, who use the service daily to access the Post Office’s diverse range of services, including banking services. I completely understand the difficulty and the frustration that communities face if there is a loss of post office services. We of course hope that the loss we are debating tonight is temporary The hon. Lady spoke passionately about her concerns for post office services in the Burncross community. I fully understand the points she made about the local area having many older people who would find it difficult to travel to Chapeltown or High Green, particularly given the limited public transport in the local area. I know that the Post Office apologises to its customers and the community for the huge inconvenience caused by what I hope is a temporary closure. Both I and the Post Office recognise the need to restore post office services to her community as soon as possible Hon. Members will be aware that the vast majority of post offices in the network are now independent small businesses operating as agents of the Post Office, so while the overall network position is very good, individual small businesses can face problems like any other. These sometimes lead to temporary closures. As the hon. Lady acknowledged, temporary closures are often beyond the direct control of the Post Office. The Post Office has not chosen to close this branch, but local development and the demolition of existing premises has resulted in the current position. The Post Office is working hard to find a solution that will allow it to restore services to the community. I will certainly work with the Post Office and the hon. Lady to redouble efforts to find an alternative site for the post office service her residents deserve. I am aware that the Post Office met the hon. Lady to discuss the matter and that it has also met local councillors It is very unfortunate that the Co-op has indicated it no longer wants to take on the post office. I share the hon. Lady’s deep disappointment in the decision made by the Co-op, especially, as she said, considering its founding principles. Unfortunately, the Post Office cannot force a business to take on a post office if, for whatever commercial reasons, it does not wish to do so. However, the Post Office has and will continue to look for willing partners who are keen to take a post office on as a part of their business in her community The hon. Lady spoke about the unique public good of the Post Office in communities up and down the country. This is absolutely one of the key points the Post Office makes when it advertises its branches and when it speaks to potential new operators. The strength of its history and social purpose cannot be underestimated, and it can have a very positive impact on a business. It is also taking steps to develop its business offer, with particular reference to banking services, which it is improving all the time. Considering the large numbers of high street bank branches that are closing around the country, this has the potential to sharpen up the offer the Post Office makes not just to its customers and small businesses that patronise its branches, but to the business partners that take on a post office branch or counter. This is also something we must push The Association of Convenience Stores recently published the "Local Shop Report 2017", which ranked post offices first in terms of having a positive impact on their local areas. These are all selling points that we have to make to potential new partners. There are, of course, commercial benefits too. It offers day-to-day banking for 99% of personal account customers, as well as businesses. It is also the UK’s number one for foreign exchange and the leading provider in the mails market. Some 73% of customers say that the post office is their main reason for visiting a partner store and 78% of people using the post office bought something else in the retail outlet that played host to the post office counter To keep post offices in our communities or—as in the hon. Lady’s case—to reopen a service, we must ensure that running a post office continues to be an attractive and commercially sustainable proposition. The Government believe that this is the case. More than 90% of branches are now run by independent business operators and retail partners. The success of the network’s transformation programme, which has seen 2,000 new operators taking on and running post office branches, demonstrates that operating a post office continues to be an attractive offer to many independent and retail businesses. I can only assume that she and the Post Office have been unable to get that message across to the Co-op in her constituency.