Examination of Witnesses (Questions 360-362)
ROYAL MAIL
GROUP
24 FEBRUARY 2009
Q360 Mr Clapham: We have talked about
an organisation that depends upon sub-postmasters et cetera.
Do you believe that the operational effects of depending on people
who underpin the network and run their own commercial ventures
are likely to remain? Is that an advantage or is there likely
to be some change?
Mr Crozier: What that gives us
is an incredibly flexible resource. In fairness to the vast majority
of sub-postmasters, they have a very entrepreneurial approach
and it works well. There are other countries where post offices
are entirely sub-postmasters and franchises; there are others
where there is a bigger proportion of what we call Crown branches.
It is not the same solution in every country, but the solution
we have at the moment seems to work pretty well. Certainly, the
Post Office results with the help of financial services are improving.
This year will be the first in many when the Post Office will
make a small profit, so there is some real improvement. One thing
that is very important to it is the work that this Committee will
be doing in looking at what other opportunities there are within
government services. You have started that process and it is a
very important part of the Post Office's future.
Q361 Mr Clapham: Within the network
Crown post offices are of particular importance. Presumably, there
will be emphasis on retaining the present number?
Mr Crozier: Yes. The number of
Crown offices has changed recently, as I am sure you know. Our
view is that the balance is now about right. The ones that we
have shifted over are now performing well. We also need to invest
in those branches because the truth is that if you go into some
of them they need modernising and upgrading better to reflect
what we now do in terms of the totality of our services rather
than just mail. A lot of investment in the Post Office outlets
themselves is needed, and there are clear plans to do that.
Q362 Mr Clapham: The government is
making available £1.7 billion up to 2011 and it is then a
matter of being able to negotiate beyond that time to ensure there
is underpinning for the future?
Mr Crozier: That is very important
and that process really starts in the autumn of this year. Obviously,
you have to do it well in advance. There are always issues on
state aid and they take time. The reality is that that process
will begin either in the autumn or very early next year at the
latest.
Chairman: This has been a very long session.
I am not very provocative from the chair. It just amuses me that
Post Office Ltd is said to be 100% publicly owned, but in order
for it to deliver it relies on 11,000 strategic partnerships with
small businesses, except for the WH Smiths, Tescos and Co-ops.
I do not think we have asked anything from you by way of supplementary
evidence, but if there is anything you want to clarify in writing
subsequently please feel free to do so. I am sorry we have kept
you for so long. This is a big and important subject. Thank you
very much.
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