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2.57 pm
The Minister for Trade (Mr. Richard Caborn): I congratulate the hon. Member for Gainsborough (Mr. Leigh) on securing this debate on the future and provision of post offices in Lincolnshire, including his constituency. I listened carefully to his remarks and welcome the opportunity to respond to the points that he raised.
The concerns voiced by the hon. Gentleman centre around the future of the rural post office network and the current and future provisions of the Post Office in predominantly rural areas and counties such as Lincolnshire. I listened with interest to the anecdotal evidence, as he called it, that has been provided.
However, I am sure that the hon. Gentleman remembers that, when I was the Chairman of the Select Committee on Trade and Industry and he had a ministerial portfolio, we spent many hours considering the Post Office. The right hon. Member for Henley (Mr. Heseltine) was then the President of the Board of Trade. I do not know whether the hon. Gentleman recalls giving evidence to the Select Committee when we were pressing hard to enable post offices to issue fishing rod licences. Over many months, about 27 letters passed between the Department of Trade and Industry and the Treasury before it was concluded that post offices could sell fishing rod licences.
Contrast that with the statements made by the organisations to which the hon. Gentleman has just referred in response to the PIU report and its 24 recommendations. Stuart Sweetman of the Post Office said:
- We are delighted that the Government recognises the network's strength and is determined--as the Post Office is--to harness the full potential of the network.
- It is not only a well composed comprehensive report but also very positive. I am pleased that the Government has accepted the recommendation without reservation.
- We congratulate the Government on commissioning the PIU report and on not only agreeing to implement its recommendations in full but also promising to back this up with funding.
- I congratulate the Government on their immediate and positive response to the PIU report. It is such an excellent report in its recommendations on rural sub post offices that it would be well to see the Government's wishes incorporated into legislation.
I turn now to the PIU recommendations, to which the hon. Gentleman paid credit. I do not know whether members of the Cabinet Office went incognito to his beautiful constituency, but I had the privilege of visiting it, as I have done many times, when I had responsibility for regeneration. I went to Saxilby. A number of schemes that we have introduced in rural areas, particularly on transport, will have helped the constituency considerably.
The PIU report on the future of the post office network, "Counter Revolution--Modernising the Post Office Network", published on 28 June, set out 24 proposals and measures to modernise and maintain the network, to protect the rural network in particular and to maintain convenient access and improve the quality of urban post offices. Unlike the hon. Gentleman's party when it was in office--I have referred to some of that Government's inaction--this Government are taking positive steps. We have been commended for that, almost universally, with the obvious exception of the official Opposition.
In accepting all of the report's 24 conclusions and recommendations, the Government have clearly demonstrated our continuing commitment to maintaining a nationwide network of post offices. Among the key elements, to which the hon. Gentleman has referred, is the proposal that a formal requirement will be placed by the Government on the Post Office to maintain the rural network and to prevent any avoidable closures of rural offices for a period of six years in the first instance. That will protect nearly 10,000 post offices in all communities of fewer than 10,000 inhabitants.
Today, my Department has issued a press release to explain how we are making positive moves to modernise the post office network. Half the network has been equipped to meet the challenges of the 21st century in line with the Government's schedule for full network automation by spring 2001. This week, the number of post offices to have Horizon installed reached slightly more than 9,100. As the hon. Gentleman indicated, there are about 18,000 post offices altogether.
Subject to evaluation of detailed business cases, financial support will be made available for a range of measures. As the first stage of our programme of modernising the post office network, we have ring-fenced funding for new investment of £270 million over the next three years to start the implementation of the PIU recommendations. I am sure that the hon. Gentleman took note of that when my right hon. Friend the Chancellor announced it in the spending review earlier this week.
We have also made it clear that we are prepared to add significantly to this investment over the next few years through support for the development of the universal bank and the extension of the Government's general practitioner and internet learning and access programmes, following satisfactory evaluation of the pilot trials. The amount of new financial support will be determined once viable proposals have been drawn up and approved.
The hon. Gentleman has been in a position of responsibility, so he will understand that bringing the various parties together to deliver some of the
recommendations cannot be done overnight. In many instances, commercial negotiations are going on as well, and they take time to feed through. However, one thing is absolutely clear: the direction laid out by the 24 recommendations in the PIU report give a firm future to all our post offices. These measures will help to develop the new business opportunities identified in the PIU report: the universal bank facilities; facilitation of e-commerce services; access to Government general practitioner and internet learning; and access services. The Post Office, too, must seek out and develop new commercial opportunities, as the previous Government also tried to encourage it to do.These new and improved services will utilise and build on the Horizon automation platform, to which the Government are contributing almost £500 million, being installed in every post office throughout the country. Installations have now been made in some 50 per cent. of post offices.
Ring-fenced funding has been set aside in the spending review for new investment of £270 million over the next three years to start the implementation of the PIU recommendations. That was universally welcomed this week. Even Opposition Members welcomed the further investment in the post office network. Subject to validation by robust business cases--
The motion having been made after half-past Two o'clock, and the debate having continued for half an hour, Mr. Deputy Speaker adjourned the House without Question put, pursuant to the Standing Order.
- Adjourned at seven minutes past Three o'clock.
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