Select Committee on Trade and Industry Minutes of Evidence


APPENDIX 9

Memorandum by the Highland Council

  I refer to the Trade and Industry Select Committee's follow-up enquiry into the Royal Mail Group and would like to take this opportunity to submit some comments for the perspective of the Highlands of Scotland.

  The Highland Council recognises the inevitability of a rural post office reduction programme, however it is important that the government, with Post Office Ltd, seeks to sustain a yet to be defined accessible and basic universal service as the Government still has an obligation to secure a national network of post office services which remains reasonably accessible to all households. The definition of "reasonable access" still has to be agreed. The Highland Council would be willing to be involved in discussions about what this should include, recognising that the variety of road networks and public transport provision might suggest different solutions for local communities.

  With many of the services provided at post offices still remaining unprofitable it will be important that some public service subsidy is retained. This will be particularly important to remote peripheral and rural communities, where access to an adjacent post office could mean a round trip of over 30 miles. The Highland Council has seen the experimentation of a range of new Rural Post Office Services only some of which have been successful. In the Mid Ross area the Post master at Muir of Ord has sustained part time rural services to several outlying communities. However the new mobile service in communities around Wick has not been successful. It is accepted that this latter service whilst sound in theory, proved to be difficult to implement in practice. It is important that with the introduction of any changes in service provision, that Post Office Ltd have back up plans when new pilot projects fail as many individuals faced real difficulties with the failure of the mobile services north and south of Wick.

  It must be recognised that Rural Post Office Services are not simply a public service in their own right. Many rural post offices exist as part of another private enterprise such as the running of a rural shop. The partnership approach is an essential feature of most rural post offices where the demise of one part of the partnership can undermine the profitability of the whole business enterprise. The subsidy to Post Office Ltd to continue the support of rural, and most likely unprofitable, post office services allowed many wider community services to be retained.

  The Scottish Executive is currently consulting on the development of a strategy for an ageing population. The increases in the older population in the Highlands are substantial with the population 65+ projected to grow by 5,690 people to 2010 and by 24,030 people by 2024. The population 75+ is projected to grow by 2,768 people to 2010 and 13,721 to 2024 (almost double its present level). The older people representatives that the Council consulted with as part of our consultation response indicated how important rural post offices are as they are often linked to shops and often form a focus for older people in the community.

  It is important that in any rural post office service reduction programme that communities, households and individuals are not left with replacement services which have an additional cost for their usage for example: a cash machine with a usage charge is not a suitable alternative to a basic post office service.

  The Highland Council recognises that there are many individuals, households and small businesses, who remain heavily reliant on access to basic postal services and believes that it is imperative that local authorities are involved in any service reduction programme that affects rural communities.

4 July 2006



 
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