APPENDIX 12
Memorandum by Postcomm
BACKGROUND
1. Postal services are just one of a range
of services offered by Post Offices on behalf of Government and
others. The Postal Services Act gave Postcomm a limited role in
relation to Post Offices which is to conduct research on developments
and give advice to the Secretary of State in an annual report
on the network. We have submitted five annual reports and two
ad hoc reports on the rural network to the Secretary of
State since 2001. The next annual report will be published in
October 2006.
2. Postcomm's role as the national regulatory
authority for the postal sector is to ensure the continued provision
of the universal postal service. Through Royal Mail's licence
we require it to provide "reasonable" access to the
universal postal service. We cannot require it to provide access
to the full range of Post Office services that are important to
local communities. This is a matter for the Department of Trade
and Industry.
NETWORK MUST
BE PLANNED
TO SURVIVE
3. Our research and discussions with stakeholders
show that there is no single model and no magic number of Post
Offices to meet the needs of different communities all over the
UK. Simply specifying a minimum number of Post Offices is meaningless
because it would not ensure that they are in the right locations
with the right services for communities.
4. There have been rumours from Royal Mail
Group about reducing the Post Office network to 4,000 offices.
These rumours, together with announcements on the Post Office
Card Account (POCA) and the loss of government business, are damaging
to customer confidence and create uncertainty for the thousands
of subpostmasters currently keeping the network going. Postcomm
does not believe that there is any value in trying to place a
numerical figure on the size of the network. We have not seen
any evidence to support the assertion that this is all that would
be needed to meet the Universal Service Obligation. Our view is
that such a reduction would break the terms of Royal Mail's licence,
as it would not be serving the reasonable needs of customers in
terms of access to postal services.
5. Decisions are needed to plan the network,
taking into account postal services and the wider social functions
provided by Post Offices in local communities. It is vital that
across government there is a clear recognition of the role that
Post Offices play to deliver government objectives (such as access
to cash in the community) and that this is not lost sight of in
the desire to establish a commercial network.
ACCESS TO
POSTAL SERVICES
6. Ensuring the continued provision of the
universal postal service across the UK is Postcomm's over-riding
statutory duty. This means ensuring that Royal Mail is able to
provide delivery and collection every working day to all parts
of the country at an affordable and uniform price. In January
2006, Postcomm fully opened the UK postal market to competition
as the best way of securing the universal service and encouraging
Royal Mail to deliver an improved service for customers.
7. Through Royal Mail's licence we are able
to require it to provide reasonable access for users to postal
services. The minimum access requirement in Royal Mail's licence
only relates to postal services and cannot be used to dictate
the size of the Post Office network.
8. The Post Office network also fulfils
other important services to the community on behalf of Government
in relation to access to cash, bill payment, licences etc. Royal
Mail's licence does not require it to provide a network of Post
Offices with their full range of other services.
A FLEXIBLE APPROACH
TO PROVIDING
SERVICES
9. Postcomm supports Post Office Ltd's use
of more innovative methods of service provision such as mobile
post offices and Post Offices in partnership with local communities
(police stations, libraries, pubs etc) where it is difficult to
keep the local Post Office going. With the report from Post Office
Ltd on the rural pilots the Government now has the information
that it needs to consult more widely and take decisions on the
future of the Post Office network—its size and range of
services.
THE RURAL
NETWORK
10. Postcomm has consistently recommended
that there should be a flexible approach to providing Post Offices
that meet the needs of the communities they serve and takes into
account the needs of vulnerable members of society (those on lower
incomes, the disabled and chronically ill, and the aged). We want
to see the rural network planned in relation to population and
small business distribution to ensure access to services that
enable communities to survive.
11. In relation to the extension of the
"no avoidable closures" policy in the rural network,
Postcomm understands that the government does not want to cause
concerns about the rural network in advance of taking decisions
about the future of the network.
POST OFFICE
CARD ACCOUNT
12. Postcomm is concerned that the demise
of the POCA will lead to a lot of confusion for many people, especially
vulnerable groups, who found the move to direct payment difficult.
However, we hope that the Department of Work and Pensions and
others will work with Post Office Ltd to ensure there is an appropriate
account available at the Post Office that will be easy to transfer
to, and that will allow real financial inclusion (allowing direct
debits etc). The reality is that the Post Office is often the
only outlet offering access to cash for people in many rural and
urban deprived areas.
June 2006
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