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I want to begin by setting out a few general points on Post Office Ltds decision to enter into a franchise agreement with WH Smith, and then to try to tackle
some of the specific issues that my hon. Friend raised about the Blackpool transfer, especially disability access, on which he focused.
The future of the post office network is a subject of great relevance to all hon. Members, irrespective of whether we have a Crown post office in our constituencies. The Post Office is run on an arms length basis and Ministers do not make day-to-day decisions about the location of individual post office branches. However, I emphasise that the Government share hon. Members concerns about securing a sustainable future for the Post Office and ensuring reasonable access to Post Office services for the public.
The decision by Post Office Ltd to enter into a commercial agreement with WH Smith has generated a great deal of interest and debate. It is not the first time that Post Office services have been shared with other retail space. Post offices already share space with retail networks such as the Co-op, Martin McColl and Spar. More than 95 per cent. of post offices in this country are run by private operators, often with a shared retail space.
There are approximately 450 Crown post offices, and they lost a combined total of £70 million last year and some £50 million the year before that. The network is therefore undergoing change, partly as a result of wider changes to the way in which we go about our business. For example, many of us choose to pay bills by direct debit; nine out of 10 people approaching retirement choose to have pensions paid into a bank account; communications technologies have undergone a revolution in recent years, and some 4 million fewer people use post offices compared with only two years ago. Clearly, that is not sustainable, and the Government support Post Office Ltds policy for reducing the losses. It includes maintaining a core network of Crown post offices and franchising branches when opportunities arise and when that would benefit future post office provision. We have welcomed the commercial deal between Post Office Ltd and WH Smith, which was announced on 19 April, because it will secure the retention of a main post office service in each of those areas. That point should not be lost in the debate about Crown branches.
As my hon. Friend said, six pilot projects of such transfers were carried out before the current franchising arrangement was announced. My understanding is that the majority of customers in those pilots welcomed the pleasant environment and the customer service. They also welcomed the extended opening hours for the service. I understand that that factor will apply to the Blackpool transfer.
In some cases, the franchising of a Crown post office has been portrayed as a closure. I accept that my hon. Friend did not intend to do that. However, there is an important differencefranchising is not closure. Without the sort of deal that we are considering, a question mark would have hung over the future many Crown post offices. The Post Office is seeking to create more certainty about the future, and in particular about how the main Post Office service will be provided in our town centres. The arrangement brings a level of certainty about the future of the 70 offices concerned.
Let me turn to some of the specifics that my hon. Friend mentioned. He expressed concern about the quality of service under the new arrangement. This is an important issue and he is right to raise it, but it
would not be right to conclude that franchising will automatically lead to a reduction in quality of service. We should remember that only about 3 per cent. of posts offices are Crown post offices, directly managed and staffed by Post Office Ltd employees. I am sure that none of us would suggest that the equally hard-working sub-postmasters and mistresses and their staff who work in the remaining 97 per cent. of the branches are providing an inferior service. Franchisees are bound by stringent contractual requirements to ensure that service standards remain at the same high level after transferring from direct management of Post Office Ltd. Staff will be trained by Post Office Ltd and expected to maintain the standards of service that the public have a right to expect.
My hon. Friend concentrated on access for people with disabilities. He is right to stress that it is important. Royal Mail Group has been working to the spirit of existing disability legislation, is committed to its being complied with and has a strong track record in improving and promoting positive attitudes. Post Office Ltd is committed to ensuring that disability access remains a priority. My understanding is that the issue has featured in discussions between the Post Office and WH Smith. The two organisations are working together to ensure that appropriate measures are taken to ensure effective reasonable adjustment to comply with the Disability Discrimination Act 1995. My understanding is that WH Smith has spent about £1.5 million on improving access in stores and new sites opened since 2003, to meet DDA regulations.
My hon. Friend pointed out that the space identified in the Blackpool store is in the basement. The same is true of a number of franchised post offices, where the space identified will be either on the first floor or in basement space. Post Office Ltd has given an assurance that the location of all branches will comply with the 1995 Act and be accessible to all customers. Arrangements will be in place to assist customers with special access needs in branches such as Blackpool, where the post office counter is not on the ground floor. I accept that my hon. Friend spoke about his own constituency, that he has visited the proposed new location and that I have not, so I tread carefully. However, I understand that there is a lift to help customers with disabilities. My hon. Friend has expressed concern, tonight and in his letter, about the quality of the lift. I understand that
WH Smith plans to refurbish and redecorate it and to carry out any reasonable improvements to assist further those customers with disabilities.
I understand that there is more queuing space in the WH Smith office than in the current office. In the event of a customer being for some reason unable to use the lift or the stairs to access the serving positions, arrangements will be available to ensure that they can be served by Post Office-trained staff on the ground floor. As one would expect from an established and prominent high street retailer, WH Smith is fully aware of its responsibilities under the 1995 Act and will ensure that the branch remains fully accessible for customers, including those with mobility problems.
My hon. Friend has made clear his continuing concerns tonight. I am sure that both Post Office Ltd and WH Smith will read his speech. Ultimately, it is in no ones interests for customers to be discouraged from conducting their business or from having a less favourable experience of the service in future.
In conclusion, the Post Office has been deprived of much needed investment over the years. The Government have put in some £2 billion since 1999 and we plan further investment in the future. The Post Office is now diversifying into providing foreign currency, fixed line telephone services and new products such as credit cards. Change is never easy and I appreciate my hon. Friends commitment, reflected in his speech tonight, but franchising is neither new nor an enemy of Post Office services. In fact, it may be a crucial factor ensuring their survival.
We value the social role of the Post Office, but we also accept that it operates in a competitive marketplace and that change means that it, too, will have to change in the future. I believe that we have set out a framework to create a stable network in the future, so that the Post Office can move forward with confidence and rise to the challenges ahead. I appreciate the difficulties at this time of change. I am sure that the Post Office will have heard my hon. Friends points, but I hope that the arrangements
The motion having been made after Seven 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 twenty-nine minutes to Nine o'clock.
That the draft Political Parties, Elections and Referendums Act 2000 (Northern Ireland Political Parties) Order 2007, which was laid before this House on 21st June, be approved.
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