Select Committee on Business and Enterprise Minutes of Evidence


Examination of Witnesses (Questions 60-79)

POSTWATCH

29 JANUARY 2008

  Q60  Chairman: Are you happy that the programme is taking account of future population growth in areas where substantial new house building may be planned?

  Mr Webber: Post Office Limited have written to local authorities. Local authorities obviously know what it is going on. They have been invited, and we have reinforced the message, that local authorities need to make Post Office Limited aware of future plans. I think in general they are doing that.

  Q61  Chairman: Postcomm say while only 3% of the network, Crown offices account for £70 million of the £90 million losses last year. Does that not suggest that the closure programme is aiming at the wrong target?

  Mr Webber: It seems to me that is a slightly misleading statistic, in that it does not take account of the subsidy which is being paid. The total losses of the network, leaving the subsidy out of it, are about £175 million, as I understand it, so it is £70 million out of £175 million, which is about 40%, admittedly a very high proportion. Although it is only 3% of the network, I think it is responsible for the best part of 20% of the business, because Crown offices tend to be the larger offices. That said, it is not an either/or programme. Both Crown offices and the sub-postmaster network need to be put in order.

  Q62  Chairman: You are happy about the balance. You have done a very interesting survey of public opinion, and you have set it out in your evidence to us. I do not want to go through it in detail, but the one that jumped off the page at me, and it really was flowing from the National Federation's evidence just now, is that, in areas where closure programmes are happening, only 18% of people said they were aware of a consultation taking place. That really worries me.

  Mr Webber: It really worried us as well. It does worry us and I will come back to why it worried us and what we are doing about it. But on average, only about 9% of the population are in fact affected by the closure programme; 91% of the population on average will have no change in their local post office. One might argue that as long as those 9% are aware of the programme it is not so important that the other 91% are not. Nonetheless, obviously this is a programme of great concern to the population as a whole. Well over 60% of the population as a whole are aware of the closure programme and, in that context, it is really rather disturbing that less than 20% of the population knew that there was a consultation going on in their area. We have done what we can, but we are a small organisation with limited reach. Post Office Limited is a very large organisation with much greater reach. We have been working with them, and certainly seeking to persuade them to make sure that there are good comprehensive press notices provided at the start of the consultation, because we have found that the best way of getting the message across is free media: the local media; local radio; and local press publicising that. That has not always happened as comprehensively as we would like. We need a routine of press notices issued at the start. We need constant reinforcement during the six-week consultation period. The message is getting through to Post Office Limited but things are not moving quite as fast we would have liked, so far.

  Q63  Chairman: Are there any other issues that flowed from your meeting the Post Office formally in mid-January to discuss the outcomes? Was there any else that flowed from that, to which the Post Office have responded?

  Mr Webber: This was a separate piece of research (but conducted at the same time) on the post office call centre. We found it was really not up-to-scratch. If people were phoning the post office call centre they were not always getting the accurate information they needed in terms of whom they needed to write to and how they needed to write. They were not getting information about email addresses to give their comments to. Post Office Limited have taken those points on board and are working on them to put them right. There is one outstanding point which we are still in discussion with Post Office Limited about and that is, at the moment people cannot make their comments via the call centre. Post Office Limited accept only written comments, except if people say that they are unable to provide written comments, if there is some particular reason why they are unable. We think that is unfair because there are a lot of people who just prefer not to and find it easier to make comments over the phone. We think Post Office Limited should accept comments over the phone. So far we do not have agreement on that, but we are still working on it.

  Q64  Chairman: The other thing that worries me, there is a six-week consultation—and the Committee thinks it is fundamentally flawed for a variety of reasons: it may suit the Post Office but it does not suit communities—and I notice your survey said that of those who stated they intended to participate in a consultation, the majority said they would contact their MP or a councillor and they put Post Office Limited third in the list of who they would contact. MPs have offices and staff so we can get that information through quite quickly; councillors might find it much more difficult to pass that information on with resources available to them. Is that a matter of concern?

  Mr Webber: It is a matter of concern, although it should be possible to get that information conveyed. I hope Post Office Limited will take as much notice of information which reaches them via Members and via local councillors as they would take of information which reaches them directly from customers.

  Q65  Chairman: Finally from me, your objectivity, your impartiality in the process, is there a danger as you get weary of all these closure plans you get co-opted into the process, become part of it and lose the freshness that you brought at the beginning of the process? I speak as someone whose consultation would be right at the very end.

  Mr Webber: I think not. Given that much of our work in this respect is focussed regionally, we have six English regions and offices in each of the three nations. Although each of them is kept very busy, it tends not to be continuous. For our central teams that is certainly so; but so far they are looking remarkably fresh even so. For the regional offices there is variation of pressure.

  Q66  Mr Bailey: The 11-week pre-consultation process, private consultation with POL, is not your involvement unnecessarily opaque? In your opening remarks you said you do not have a cosy relationship, but do you not think the privacy of this and lack of transparency conveys a public impression that there is a certain cosiness?

  Mr Webber: I can see there is a presentational problem but I think it is actually necessarily opaque. What we can do, and will be doing, and probably in our next report we will give details of this, is indicate in general terms, without naming individual branches, what has happened in each area plan, the number of proposals which have been changed and so on as a result of our intervention. For the sort of reasons that George Thomson was pointing out, there is a need for confidentiality at that stage. It is important to be able to substitute post offices, to discuss why a particular post office should not close without the glare of publicity being on it. Although it is difficult to explain and demonstrate to the public why that should be so, I think it is fairly clear that those sorts of "without prejudice" discussions, which I accept are behind closed doors, are a necessary part of the process.

  Q67  Mr Bailey: If there was not this private pre-consultation period, in effect the length of time for public consultation could be extended and you could be involved in that. The results of your participation would be rather more visible. Do you not think that is a better way of doing it?

  Mr Webber: If it were an either/or then I would agree with you. The decision to have a six-week public consultation was taken regardless of the pre-consultation period, and it was a Government decision; not our decision; and not the decision of Post Office Limited. It is something possibly to take up with the Minister. Given that there is only a six-week public consultation period, it becomes all the more important to have a very substantial pre-consultation period for two reasons at least: one, so that the plan which reaches the public is as good as it can be without that direct public input; and, secondly, so that we at Postwatch, local authorities and MPs are as fully informed as we can be at the start of that public consultation period; so we can ensure that the public input is as high quality as possible.

  Q68  Mr Bailey: Taking up the issue of commercial confidentiality which I believe Postwatch feels could be more open certainly in terms of the POL position, and certainly I can see the argument why individual sub-post offices would not want this detail being publicly conveyed, however those elements of the funding package that are POL and can be stated in general terms to give a greater understanding to the public of the level of cost involved, why have they not really conveyed that? What is your feeling?

  Mr Webber: I do not know the answer to that. It possibly is one of the symptoms of what I was saying is the major concern from our point of view, that Post Office Limited are not as happy on the issues of communicating with their customers so far as they have been on the mechanics of the process. There is scope for more openness. As you say, there is no reason why those sorts of general matters should not be made public. I think some of them have been but they are pretty complicated—there is no doubt about that. There is a large variety of contractual arrangements with sub-postmasters. That said, there is scope I think to educate the public on this in a way that is not necessarily happening at the moment.

  Q69  Mr Bailey: Certainly on the basis of the publicity surrounding the closure of some post offices shall we say the broad details of those extra costs, which I am sure could have been conveyed by POL, have not been conveyed?

  Mr Webber: I would hope that their attitude would be that everything which there is no reason to keep secret, should be disclosed.

  Q70  Roger Berry: Local authorities have complained that they are not sufficiently involved in the pre-consultation process. Do you believe that is correct?

  Mr Webber: At the start that was absolutely the case, and we pushed hard with POL to be more open with local authorities. Obviously local authorities need to respect the confidentiality of the information they are given; but provided they are willing to do that (and in some cases they are not, and if they say explicitly they do not want to keep confidences that is fine, but they then cannot expect to be given confidential information) and provided they agree before the public consultation that matters should be kept confidential, they should be fully involved and we have no argument about when that should happen. We are quite happy for that to happen early on in the pre-consultation process. Certainly the situation is better now than it was at the start of the programme, even if it is not yet quite as good as it might be.

  Q71  Roger Berry: There are some local authorities passing resolutions proposing closures contrary to the view of the National Federation, contrary to the views of Postwatch and so on. Are these local authorities doing that publicly? Are they privately engaged in serious discussion about the way forward, or are they opting out of providing information? What is the response that you are getting?

  Mr Webber: I think there is a mixture. In some cases there is a genuine opposition in principle to the whole idea of post office closures, and they are not having anything very much to do with the programme at all. In other cases there are public positions being taken which might not necessarily be 100% backed by the private position. I can understand both approaches—they are both understandable.

  Q72  Roger Berry: Do you think there is an argument that as an unelected quango, and I say that in the nicest possible way, Postwatch has far more active involvement in this process than elected representatives, both locally and nationally elected representatives?

  Mr Webber: Probably that is true. Whether that is a good thing or bad thing is not for me to say.

  Q73  Roger Berry: Oh, go on!

  Mr Webber: I hope we are discharging our responsibility ably and with expertise and with genuine concern for the interests of consumers; in which case I hope we are acting on behalf of the community as much as any elected organisation or authority would do.

  Q74  Roger Berry: The pre-consultation involvement of local councillors, is it about anything more than providing information; or is it about do they have the opportunity of making serious input into the options available for local communities?

  Mr Webber: The very early invitation for information is just that. Local authorities are being invited to provide information about planning issues, if there are developments afoot et cetera. As the pre-consultation period proceeds more and more local authorities are being invited to give qualitative views on what is proposed; and obviously when it reaches the public consultation phase then local authorities are full participants.

  Q75  Mr Hoyle: Just to follow on from that, this is about local representation because we are the elected members yet somehow you are the overseer, and some people say you are very, very cosy. The fact that you seemed to have rolled over and accepted in my area five closures, three of which want to go and two that do not, the two that do not were the post offices that should have remained open after the last event we went through. I saw closures previously and the justification was that these two post offices were the post offices people had got to use. Now what we are saying is, "Ah, well, we didn't really mean that because we're going to close them now". Do you find that acceptable, because you went along with it in both cases?

  Mr Webber: It is a different programme is the first point, Mr Hoyle.

  Q76  Mr Hoyle: So we have changed the rules so it does not count?

  Mr Webber: The Government have said that 2,500 post offices are to close. We could either have said, "That's wrong in principle" and stayed on the sidelines and sulked, or just shouted; or we could have said that we're going to work hard with Post Office Limited, but as an entirely separate organisation.

  Q77  Mr Hoyle: What have you done for Chorley and the people of Chorley?

  Mr Webber: I am afraid I cannot answer about an individual constituency.

  Q78  Mr Hoyle: If you could let us know I would be grateful.

  Mr Webber: I will write to the Chairman. I will be very happy to do so.

  Q79  Mr Hoyle: I would like you to write to me as well as the elected member. We do have some thoughts and opinions on it.

  Mr Webber: Certainly I shall do that as well. We are only in week two of the public consultation for the area your constituency is part of, I believe. Obviously all bets are still on in terms of that.


 
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