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You can find the current article at its original source at https://www.theguardian.com/business/2017/sep/07/government-should-cut-bank-of-ireland-out-of-post-office-bank-says-report
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| Government should cut Bank of Ireland out of Post Office bank, says report | Government should cut Bank of Ireland out of Post Office bank, says report |
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| The government should cut the Bank of Ireland out of the Post Office network and establish a state-run Post Bank, using it to boost services to small firms and rural communities, a new report argues. | The government should cut the Bank of Ireland out of the Post Office network and establish a state-run Post Bank, using it to boost services to small firms and rural communities, a new report argues. |
| Ending the partnership – which offers savings, credit cards and mortgages through the Post Office brand – and buying the Dublin-based bank’s Post Office assets would cost up to £2bn, according to research from Cass Business School on behalf of the Communication Workers Union. Doing this would help boost profits at the network, removing the need for government money in the long-run. | Ending the partnership – which offers savings, credit cards and mortgages through the Post Office brand – and buying the Dublin-based bank’s Post Office assets would cost up to £2bn, according to research from Cass Business School on behalf of the Communication Workers Union. Doing this would help boost profits at the network, removing the need for government money in the long-run. |
| Prof Barbara Casu Lukac, author of the report, said: “Most people are probably not aware they’re buying Bank of Ireland products, because they buy it at the Post Office. Buying the banking business would help the Post Office to remain self-funding.” | Prof Barbara Casu Lukac, author of the report, said: “Most people are probably not aware they’re buying Bank of Ireland products, because they buy it at the Post Office. Buying the banking business would help the Post Office to remain self-funding.” |
| This isn’t the first time the government has been urged to tear up its contract with the Bank of Ireland, while the latest calls also follow several attempts in recent years to get the government to create a state-owned “Post Bank”. Many European countries, including Italy and France, operate banks through their postal operators. | This isn’t the first time the government has been urged to tear up its contract with the Bank of Ireland, while the latest calls also follow several attempts in recent years to get the government to create a state-owned “Post Bank”. Many European countries, including Italy and France, operate banks through their postal operators. |
| The Labour party also included the establishment of a commission to create a Post Bank in its election manifesto. The plan could also represent a return to the days of the old Giro Bank, a “people’s bank” started by Harold Wilson in the 1960s through the Post Office but later sold off by Margaret Thatcher in the late 1980s. | The Labour party also included the establishment of a commission to create a Post Bank in its election manifesto. The plan could also represent a return to the days of the old Giro Bank, a “people’s bank” started by Harold Wilson in the 1960s through the Post Office but later sold off by Margaret Thatcher in the late 1980s. |
| Creating a bank would offset the closure of branches by major high street lenders such as Royal Bank of Scotland and Lloyds, while also helping small firms to access financial services, according to the Cass study. Banks are set to close a record 762 branches this year, depriving rural communities of local facilities. | Creating a bank would offset the closure of branches by major high street lenders such as Royal Bank of Scotland and Lloyds, while also helping small firms to access financial services, according to the Cass study. Banks are set to close a record 762 branches this year, depriving rural communities of local facilities. |
| The report argues the Bank of Ireland lacks the ability to invest substantially in the Post Office. That has prevented the firm from establishing small business lending, while it’s also struggled to roll out current accounts, Lukac said. | The report argues the Bank of Ireland lacks the ability to invest substantially in the Post Office. That has prevented the firm from establishing small business lending, while it’s also struggled to roll out current accounts, Lukac said. |
| Dave Ward, general secretary of the CWU, said the Post Office network “gives it huge potential for growth and to provide banking services” to small firms and financially excluded communities. “We would urge the government and the Post Office to act on the report’s recommendations,” he said. | Dave Ward, general secretary of the CWU, said the Post Office network “gives it huge potential for growth and to provide banking services” to small firms and financially excluded communities. “We would urge the government and the Post Office to act on the report’s recommendations,” he said. |
| A spokesman for Bank of Ireland said the lender has a “long-established and successful financial services partnership” with the Post Office, dating back over a number of years and serving about 2.4 million customers. “Regarding the report referred to, we have no comment to make,” the spokesman added. | A spokesman for Bank of Ireland said the lender has a “long-established and successful financial services partnership” with the Post Office, dating back over a number of years and serving about 2.4 million customers. “Regarding the report referred to, we have no comment to make,” the spokesman added. |
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