Royal Mail sale 'may close 9,000 post offices'

3rd May 2011

Government plans to sell of the Royal Mail could result in the closure of more than 9,000 post offices, according to a report.

Research from the Communication Workers Union (CWU) found that nine out of 10 sub-postmasters said they could not survive without Royal Mail business.

The poll of 800 sub-postmasters found 89 per cent (712 people) believed they were unlikely to continue if the government goes ahead with the proposed "Locals" model of franchised post office services.

On this basis, the CWU found that more than 9,000 post offices would close.

And among those surveyed, most had little or no confidence that the government will return to post office services that have been removed.

The unions have fought hard against the Postal Services Bill, arguing that the measures will threaten jobs, services and the Post Office network.

Under the proposals, which have yet to be approved by the Lords, the Post Office would mutualise and Ofcom would become the regulator.

And employees will be in line to receive at least 10 per cent of shares in the company.

Peers will continue to scrutinise the plans when the bill is debated at report stage in the upper chamber tomorrow.

CWU general secretary Billy Hayes said: "These figures clearly demonstrate the fears of sub-postmasters and mistresses about the fate of our cherished post office network.

"Based on these projections, the post office network faces a greater threat than anyone previously dared believe. Even the warnings of postal watchdog Consumer Focus - which warned last month that 2,000 offices could close under the Post Office Locals plan - fall short.

"Through the privatisation of Royal Mail, refusal to guarantee business and the removal of government contracts, the government is failing post offices.

"It must listen to the opinions of those who work in the Post Office and decide whether the threat of mass closures is something it wants on its hands.

"Sub-postmasters will vote with their feet if the erosion of services and support continues and that will have a devastating impact on communities across the country."

Responding to the report, postal affairs minister Ed Davey said the government position is clear that the Post Office is "not for sale and there will be no programme of closures".

He said: "Instead we have announced £1.34bn of funding for the Post Office, to maintain and modernise the network. In return for the funding, Post Office Ltd must maintain a network of at least 11,500 branches.

"The organisation that represents subpostmasters - the National Federation of SubPostmasters - supports the Postal Services Bill. They recognise the important steps we are taking to turn the post office network around and end the years of decline."

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