Memorandum submitted by Cornwall County
Council
We welcome this new inquiry into the future
shape of the Post Office network and the recognition of the crucial
role the Post Office has in the lives of individuals across all
of our communities.
In addition to the current services offered,
the Post Office should be invested in and supported by all forms
of government to provide a range of services that recognise its
unique social position and far reaching network. These attributes
are particularly important in light of climate change, peak oil
and the economic downturn. The Post Office and the Royal Mail
should be strengthened to help us build a more sustainable future.
Part of this approach is ensuring the balance in communities between
housing and employment. Only those communities with a variety
of services and infrastructure will be able to accept new development.
It is new housing and employment which provides the basis for
services to function.
It would have been helpful for such a consultation
to have acted as a preamble to the Network Change programme and
the short consultation timescale on this. The inter/national economic
crisis and the need (particularly) for small and micro business
to have access to capital in rural areas such as Cornwall mean
that some communities and businesses are now bereft of their only
access to a local bank: the Post Office. It is to be hoped that
the collective evidence to the Committee will develop partnership
solutions to rectify this.
In the first instance, the Committee would welcome
written evidence on the following questions.
1. What services should the Post Office network
offer?
from government,
— Community group bank account, to support
the work of the 3rd Sector
— Wherever possible government should be
investing in the post office network, by providing access to services
and government based transactions via this trusted network rather
than removing business from it—Maintain/expand payment of
car tax, TV licence, pensions, all benefits etc.
— Information provision—providing
local access (combination of displayed information, leaflets,
and web based information point) to a range of government services
such as policy, government initiatives, consultations, job vacancies,
etc. This could signpost and supplement things such as the current
advertising campaign for the government's "one stop"
website on information and services.
from local authorities
— The post office should be offering the
equivalent range of local authority services as above—opportunity
to pay council tax, other council bills/fines, collect benefit
payments etc.
— Again the post office could act as an
information point/local interface for local authorities and some
of their services; whether through an internet based information
point, printed information, or advice from trained staff (or combination
of all) eg Information on councillors, local planning issues,
a point where recycling bags can be collected etc.
from other sources, including services in competition
with Royal Mail Group;
— Full banking services—provide stable
and dependable services to the public and businesses, including
a bank account aimed specifically at community groups/social enterprises
which takes account of their specific needs and aims and objectives.
A proper banking service could, after initial set up, generate
income which would help reduce or even eliminate the need for
continued government investment in the service. Local banking
services are especially important at a time when "big bank"
lending and risk policies have been found wanting and when it
is important—once again—to rediscover the link between
lending policy, local knowledge and recycling of investment locally.
There is also an opportunity to link individual elements of the
Network to Credit Unions, enabling greater accessibility.
— Collection of fines from police/courts/parking
wardens etc. Check official documents ie for police.
— Ability to pay other bills as is at present,
buy mobile phone top-ups, charge electricity key etc
— Act as prescription collection points
— Postage for Ebay. Evidence submitted
to Cornwall County Council during the Network Change programme
suggested that a number of small and micro businesses were dependent
on their local Post Office for ebay parcel transactions. Post
Office closures meant that people would have to travel further
afield to an alternative, costing them time and money and impacting
on C02 into the environment.
— (Web based?) info on local services—eg
public transport. The new unified Cornwall Council (from 1 April
2009) is looking at ways that information points could be integrated
into rural facilities as a surrogate for the one-stop-shops operating
in larger town areas.
To what extent would these increase the network's
commercial viability? Is there a case for any service to be subsidised,
and if so, to what extent.
— We argue that the term "subsidy"
has negative and misleading connotations in this debate and that
the government should be investing in the PO network in recognition
of its value to society, rather than measuring on purely economic,
profit based criteria.
— Development of a full banking service
has the potential, after initial set up costs to generate income
and reduce the need for ongoing investments—as when the
Giro Bank was established.
2. How much account should be taken of
(a) costs to the taxpayer in providing
services through the Post Office rather than through cheaper channels;
and
— Again, it is imperative that social and
environmental benefits of local service provision are recognised
and properly valued as should be the quality and reliability of
the PO brand. We should be future proofing our services in light
of impending climate change proposals, and even more impending
economic concerns—the post office is well placed to be a
key organisation in the necessary transition. It should be developed
into a financial viable institution, recognised, valued and celebrated
for it cohesive social and economic role. There is no evidence
that the Network Change Programme "rural proofed" either
in its decision making criteria or final decisions on Post Office
branch closures. Issues such as accessibility to a vehicle or
the ability to be able to access complex topographical or transport
requirements to access an alternative branch were not considered.
Displacement of customers could have had a social impact and an
impact on other areas of government expenditure.
(b) consumer preference for alternative
channels?
— In terms of choice, the PO should be
allowed to compete on a level playing field. It also should be
recognised that choice delivered through competition doesn't always
lead to increased innovation, and cheaper services—the banking
industries and energy companies are clear examples of where this
approach has failed.
— Choice is also based on trust, and at
present much of the trust in alternative services has been rocked.
— In order to address the issue of alternative
services, the Post Office should consider its opening hours in
light of modern working practices and demands. It should have
an internet based complement to face-to-face use of all its services
and staff should be adequately trained and supported to provide
the wide range of services.
— Although welcome that the Card Account
contract has been awarded to the Post Office until 2015 there
are concerns about the reduction in payment to sub postmasters
per transaction which will impact on overall business viability.
This may not be a sufficient incentive for business development
for those (say) now in their early fifties who may conclude that
there could be another closure/restructuring programme at that
time. We are concerned that consumer choice—particularly
for the most vulnerable, deprived or isolated within our communities—would
be susceptible to further loss of the Post Office as any government
seeks to curtail costs and expenditure within the context of the
economic crisis. Consequently, the Card Account has to be a full
account with adequate payment to those who administer it and made
an attractive local banking solution to a wider cross section
of the community.
3. To what extent would a desire for the
presence of a Post Office or Post Office services translate into
actual use of those services?
— In the context of Peak Oil and Climate
Change issues (including the cost of travel), we believe there
are new opportunities for local service provision to be attractive
by reducing travel costs and road congestion. It is likely there
will be a time when it is financially impracticable to travel
further afield for day to day needs. The PO is one of the few
services still remaining in many rural or isolated areas and would
be well placed to provide services in such times of change.
— In addition, internet trading is likely
to increase and the local Post Office is ideally placed to take
advantage of this traffic. 86% of retail businesses in Cornwall
are SMEs and the vast majority of these are micro-businesses.
There is a distinct lack of key business skills in this sector:
46% of traders in Cornwall do not have internet access. This is
not because they do not have access to the internet; they lack
the skills to be able to use a computer or do not understand how
this may help their business.
— Other issues that need to be addressed
(f they are not being done so by the Change Programme):
— Stock purchase and rotation.
— Needs of a working community.
— Size of footprint for business operation.
4. What are the impacts of the availability
of post office facilities for businesses, and local residents;
and in particular how significant is the network in aiding social
and financial inclusion;
— The PO provides a local facility which
enhances social and financial inclusion through a space for interaction
and the provision of banking facilities. In playing a role to
combat climate change, there is the potential to reduce people's
need for travel and associated travel costs. As a trusted brand,
the PO could gain public confidence in this respect, especially
if it leads by example in environmental awareness.
— It is well documented that many small
and medium sized enterprises rely on the PO to operate their businesses
and the removal or decline of PO services would affect their viability
and future operation.
— Amongst socially excluded individuals
and rurally isolated people the post office is a key life line—with
climate change, peak oil and economic recession, this trend is
set to increase.
— A true account of the PO's social value
needs to be developed—in many communities the PO provides
our social glue. It is often a key institution in the local community
encouraging social interaction and as such can help reduce social
care and health care costs, enabling people to live independently
for longer. It reduces CO2 emissions by reducing the need
for travel.
5. What level of subsidy—if any—per
Post Office would be reasonable in the long term; for example,
should it be £20,000 or £200,000?
— We believe it is unhelpful to debate
figures like this without clarity of what the PO will provide
in the future. As stated earlier, the term "investment"
is more appropriate in recognition of the holistic social, environmental
and economic value of what the PO can and should provide to the
public.
— Investment in the PO network should be
complimented by support to sub postmasters to ensure their businesses
are viable and meet local needs and demands. Business planning
advice and support could be provided to sub postmasters to ensue
investment in the network itself is as effective and sustainable
as possible. The RCC's are well placed to be funded to provide
this advice and support to help ensure a viable and sustainable
wider PO network.
— This sort of information is best understood
through consultation with individual businesses. Cornwall County/Council
is currently looking (with partners such as the CRCC and the Cornwall
and Isles of Scilly Rural Cornwall Partnership) at evolving research
to better understand the rural and micro economy. Within this
work will be consideration on the future opportunities for Post
Offices and rural shops (often interlinked), working with business
owners, customers and other stakeholders.
— If a Post Office is lost, so is the building
likely to be lost to residential purposes. This is a loss of workspace
in a rural community.
— Potential funding strategy could be managed
in a co-ordinated way through the Rural Cornwall and Isles of
Scilly Partnership. This is a twenty year old partnership of the
public, private and third sector adept in strategic and project
development.
January 2009
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