Memorandum submitted by South Oxfordshire
District Council
— The Council believes the Post Office
Network is a key service for residents and businesses, particularly
in rural areas where lack of public transport can be a barrier
to people accessing services located away from their community.
— The local post office is especially important
in aiding social and financial inclusion as it makes financial
services available to vulnerable groups who might otherwise be
unable to access these.
— Some subsidy may be appropriate to maintain
post offices and some services where these are not economically
viable but where a definite social benefit can be demonstrated.
— A clear indication from government of
its commitment to the future of the Network, together with a review
of the Network and opportunities for modernisation and innovation
in service delivery may make it more attractive both as a service
outlet for the public sector and others, and to users, and provide
a route to greater economic viability.
1. What services should the Post Office Network
offer?
1.1 The Post Office Network provides an
important link and interface between government and people and
businesses, particularly in rural areas. The government should
continue to use post offices as a service delivery outlet and
should review the potential for expanding this role for the network
as a means of increasing its viability.
1.2 Bill payment services and other financial
services should continue and opportunities should be sought for
expanding these. South Oxfordshire residents currently benefit
from the option to pay for council services through the Post Office
Network. Transactions range from occasional payments for services
such as bulky waste collection to payment of council tax, amounting
to a significant total transaction value in excess of £30,000 in
2008-09. Although the Council encourages residents to pay their
council tax by direct debit and has made available the option
of online payment for services, it is important that payment through
the Post Office Network remains an option for people who cannot
or prefer not to use direct debit or carry out on-line transactions.
2. What are the impacts of the availability
of post offices for businesses and local residents; and in particular
how significant is the network in aiding social and financial
inclusion?
2.1 Post offices provide a key service and
community facility in our towns and villages. The loss of a post
office can often means the loss of the village store with serious
consequences for the most vulnerable in our communities.
2.2 The post office makes an important contribution
to social inclusion for people who, for a variety of reasons such
as illness, disability or lack of transport cannot easily make
the journey to the nearest town or service centre to access the
services currently provided locally through their post office.
The network also supports financial inclusion for people who have
difficulty accessing financial services through other means.
2.3 The Council reflects the importance
of post offices as essential community facilities in the Local
Plan, which seeks to prevent the loss of an essential community
facility or service through change of use or redevelopment, except
under specific conditions. Post offices are included in the definition
of a potentially essential community facility and service covered
by the policy. (Policy CF1)
2.4 South Oxfordshire has a thriving small
business sector with many businesses in rural locations as well
as our market towns, and data suggests that a significant proportion
of people work from home. For these, the existence of a local
post office for business purposes is important.
3. What level of subsidy—if any—per
post office would be reasonable in the long term?
3.1 The question of subsidy as presented
is too broad and too dependant upon other factors yet to be decided
to make it possible to suggest a figure. A limited amount of financial
support for the network may be necessary in some cases where a
definite social benefit can be demonstrated. It is worth noting
that this council already provides financial support to post offices
in the district in the form of discretionary rate relief to 16 post
offices at a current cost of £4,200 per year. The Council
also pays the full transaction cost for payments for its services
that are made through the post office rather than opting to split
the fee between the customer and the council. We do this to avoid
penalising people for selecting this option, and so that we do
not discourage the use of local post offices, which we consider
are key service delivery outlets in our communities.
3.2. Notwithstanding our support for local
post offices, and their contribution to sustaining community life
in our towns and villages, the council recognizes that it is not
possible to make available unlimited subsidies for economically
unviable services. However, it may be possible to minimize the
level of subsidy needed by improving the opportunity for the Network
to achieve viability. The future of the Network is uncertain,
and this inhibits its modernisation, and innovation from within,
and must certainly discourage local authorities and others from
viewing the Network as a potential outlet for delivering other
services. A clear indication from government of its commitment
to what remains of the Network, coupled with a thorough review
of, and improvement to the way post offices operate, for example
more convenient opening hours, better premises etc. may make the
network more attractive to the public sector and others as a service
delivery outlet. A transitional subsidy from government to support
progress towards viability may be reasonable in that context.
January 2009
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