Memorandum submitted by Intellect
Intellect is the UK trade association for the
IT, telecoms and electronics industries.
Its members account for over 80% of these markets
and include blue-chip multinationals as well as early stage technology
companies. These industries together generate around 10% of UK
GDP and 15% of UK trade. Intellect is a vital source of knowledge
and expertise on all aspects of the hi-tech industry.
Alongside the technology industry's considerable
footprint in the UK, it also enables many other industries in
today's economy:
— transport and logistics;
— defence and aerospace; and
Intellect welcomes this inquiry by the Business
and Enterprise Committee into the future shape of the Post Office
network. Our members are involved in a variety of ways with the
mail industry, including sorting, franking and address interpretation.
As such, technology companies are at the heart of the issues facing
the postal market today. However, as businesses per se, wanting
to access high quality services closer to where they are located,
the continuation and strengthening of the Post Office network
is an important issue. This is particularly so for SMEs: over
500 are within Intellect's membership.
NB: Intellect has only responded to questions
1, 2 and 4.
INTELLECT'S
RESPONSE
(1) What services should the Post Office
network offer:
— from other sources, including services
in competition with Royal Mail Group
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?
John Suffolk, the Government's CIO, writing
in the Transformational Government Annual Report 2007 noted,
"no-one wants to travel from place to place to access the
services they require and the experience of our customers when
they deal with us should be efficient, simple and well-managed".[48]
Intellect supports this vision. The Post Office network, with
12,000 outlets across the country,[49]
is a crucial access point for Intellect's members, particularly
our SME community, not only to postal services but other products
and services.
Intellect believes the Post Office infrastructure
could play a fundamental role in achieving the aims set out by
Mr Suffolk, to ensure modern and accessible public services are
available closer to the place of business and the home of the
citizen. It should be noted that Intellect perceives them as an
additional channel for service delivery, providing the citizen
with a greater number of access points to public and private services.
The decision in November 2008 to allow
Post Office Ltd to continue to run the Post Office Card Account
was an important step to ensure the viability of the post offices.
Services of this nature and size are a benchmark for other services
that could be provided, for example, a collation and despatch
service for a range of products, potentially including identity
cards (Post Offices already perform an identity checking service[50]).
Given the geographical spread and the trust that people have in
the network, it is another option worth considering. Other services
that could be delivered through Post Offices include:
— Allowing Post Offices to provide a collection
and drop-off point for parcels and packages for other carriers
alongside Royal Mail Group.
— Introduction of "internet booths"
in some Post Offices (these could be paid for through on-screen
advertising or sponsorship). By providing increased opportunities
for access to the internet this would not only draw people into
the post office but, crucially, help reduce the "digital
divide".
— Additional services that could benefit
both individuals and SMEs include "hot desking", Skype
facilities and video conferencing. Depending on the size of the
Post Office, small meeting rooms could also be made available
for hire.
— It could provide a wider range of financial
services, such as cashing cheques for internet banks.
— The FSA's consultation on compensation
scheme reform[51]
proposes a variety of methods by which a fast payout to depositors
can be achieved. Methods proposed include electronic payments
and payment by cheque (sent to the consumer's home address). However,
given the concern over potential fraud, one mechanism to facilitate
the payout might be for bank's cheque to be sent to the customer's
nearest Post Office. The individual would then need to produce
identification "over the counter" to receive the cheque.
TECHNOLOGY
Some of the suggested new services would lead
to increased investment in technology within Post Offices, which
could help to create a network fit for the 21st century. Not only
would this increase the number of benefits, but would also see
the upskilling of staff, providing them with a new skill base
and strengthening the Post Office's "human" infrastructure.
"ONE-STOP
SHOP"
There could also be a role for Post Offices
to act as a "one stop shop" for accessing both public
and private sector services, from registering an address change
to paying utility bills. They are capable of providing local support
to deliver a customer face for remote service agents; where the
customer needs support, they can assist.
An international example of how this could operate
can be found in Portugal. The Portuguese Government's Agency for
Administrative Modernisation has developed a "user centric"
strategy and a key part of this is the focus on the "face
to face" model, which encourages interaction with the community.
In Madeira, they have developed "Citizen Shops" and
"Business Shops" to provide a "one-stop shop"
for both citizens and businesses. Services are available across
a range of areas including:
— Public sector—taxes, social security,
labour, justice, health.
— Private sector—utilities, banking,
post.
The projects have received positive feedback;
for example, the use of computers was very reassuring to citizens
and helped create a perception of accuracy and modernity. Both
"shops" are being rolled out across the country. This
model demonstrates the success of an agenda aimed at meeting the
citizen's needs. As was noted in the Service Transformation Agreement,
published in October 2007, the Government is committed to investigating
the better use of "one-stop shops".[52]
Intellect suggests that the Post Office network could play an
important part in achieving this, should the UK government or
a regional body attempt to replicate this model.
ELECTRONIC PRESCRIPTION
SERVICE
It can be the simplest of services that makes
a difference to people's lives. The Government's Electronic Prescription
Service (EPS)[53]
will enable prescribers—such as GPs and practice nurses—to
send prescriptions electronically to a dispenser of a patient's
choice (such as a pharmacy). This will make the prescribing and
dispensing process safer and more convenient for patients and
staff. In Sweden, prescribed drugs can be dispatched to a citizen's
nearest Post Office (a service that is particularly helpful for
elderly and/or immobile citizens and those that live in rural
communities); this could be considered within the UK.
(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
(b) consumer preference for alternative
channels?
The costs to the taxpayer are not insignificant—circa
£150 million a year. However, this is a tiny amount
given total public expenditure in 2008-09 is, in real terms,
£532 billion[54]
(therefore accounting for 0.03% of public expenditure). The benefits
through delivering services through the Post Office will help
to alleviate the cost and provide environmental benefits, as by
bringing services closer to an individual's home and business,
less energy will be consumed through travel.
(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 availability of post office facilities is
very important for Intellect's SME community, particularly in
rural areas where they act as an important support mechanism.
In terms of the green impact, the availability of services closer
to the customer will reduce travel time, help to cut down on transport
costs and therefore pollution.
One area where Post Offices can also make a
difference is that relating to some of the newer business parks.
Although the business parks are a welcome initiative to the SME
community, Intellect's members have reported that some do not
have the necessary support mechanisms available, for example,
access to a Post Office. Steps could be taken to rectify this.
SUMMARY
Intellect supports a healthy and sustainable
network of Post Offices, providing a range of services to both
citizens and businesses. Our membership is made up of companies
of all shapes and sizes, spread across the UK. Intellect welcomes
proposals to bring a range of services closer to the point of
business and the unrivalled geographical spread of post offices
provides an important infrastructure to achieve this. We appreciate
that all the above may not be possible in all Post Offices for
logistical reasons but we urge the Committee to be bold in its
consideration of the services that could be provided through this
valuable network.
January 2009
48 http://www.cio.gov.uk/documents/annual_report2007/tg_annual_report07.pdf Back
49
The independent review of the UK postal services sector (page
24) Back
50
http://www.postoffice.co.uk/portal/po/content1?catId=63400715&mediaId=52100693 Back
51
http://www.fsa.gov.uk/pubs/cp/cp09_03.pdf Back
52
http://www.hm-treasury.gov.uk/d/pbr_csr07_service.pdf. The following
is from page 18: "The objective for the CSR07 period
is to move towards more one-stop shops in places which the public
will find convenient; towards greater sharing of generic administrative
back office space (for example shared service centres, especially
where this makes for improved front-of-house delivery); and towards
finding ways of delivering face-to-face services at a place of
the customer's convenience through the use of mobile service provision." Back
53
http://www.connectingforhealth.nhs.uk/systemsandservices/eps Back
54
http://www.hm-treasury.gov.uk/d/pesa0809_complete.pdf Back
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