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Call to save rural post offices Call to save rural post offices
(about 2 hours later)
Postmasters are set to call for urgent government action to safeguard the network of rural post offices.Postmasters are set to call for urgent government action to safeguard the network of rural post offices.
A petition of four million names will be handed into Downing Street and the National Federation of Subpostmasters will hold a rally in London.A petition of four million names will be handed into Downing Street and the National Federation of Subpostmasters will hold a rally in London.
It says income lost from some services may threaten the network's future.It says income lost from some services may threaten the network's future.
The post office network is losing £200m a year and the government is widely expected to require some closures as part of a subsidy renewal agreement.The post office network is losing £200m a year and the government is widely expected to require some closures as part of a subsidy renewal agreement.
The government says the 800 smallest post offices are used by an average of 16 people a week, and that the rural network is currently supported by an annual subsidy of £150m.The government says the 800 smallest post offices are used by an average of 16 people a week, and that the rural network is currently supported by an annual subsidy of £150m.
I want to maintain a national network, but I want to do it in a way that will last Alistair DarlingTrade and industry secretary
Trade and Industry Secretary Alistair Darling said doing nothing was not "sustainable" and the Post Office needed to adapt.
He said that many of the services once offered exclusively could now be done elsewhere - for example, people were now able to buy road tax online, 98% of new pensions were paid straight into people's bank accounts, while TV licences could no longer be bought at post offices.
"What has changed over the years is that many post offices have found there are few people coming in through the front door," he said.
However, it was "inconceivable" there would be no subsidy of post offices, but the amount would depend on the final decision on the future shape and size of the network.
"I want to maintain a national network, but I want to do it in a way that will last so we don't keep coming back again and again to the underlying problems we have had in the past few years," he said.
'Crunch time''Crunch time'
NFSP general secretary Colin Baker said it was "crunch time" for post offices.NFSP general secretary Colin Baker said it was "crunch time" for post offices.
"The 28 million customers who use the Post Office every week are confused as to what the government wants of the network and of the people who run it," he said."The 28 million customers who use the Post Office every week are confused as to what the government wants of the network and of the people who run it," he said.
"We believe that the time is now overdue for ministers to decide.""We believe that the time is now overdue for ministers to decide."
Mr Baker, who will deliver the petition, added: "We are fighting today for the Post Office of tomorrow, and the government must act."Mr Baker, who will deliver the petition, added: "We are fighting today for the Post Office of tomorrow, and the government must act."
The number of post offices has fallen from 18,393 in 1999 to 14,376 in 2005, according to Postwatch, the postal services watchdog.The number of post offices has fallen from 18,393 in 1999 to 14,376 in 2005, according to Postwatch, the postal services watchdog.
POST OFFICES IN CRISIS Despite subsidies of £150m, post offices lost £111m in 2005Postcomm estimates 1,500 of 8,000 rural post offices make money72% of subpostmasters are uncertain about the future, says PostcommRevenue from services withdrawn from post offices by the government has fallen £168m in the past year
Among problems faced by post office income is the planned withdrawal of the Post Office Card Account, used by millions to access pensions and benefits.Among problems faced by post office income is the planned withdrawal of the Post Office Card Account, used by millions to access pensions and benefits.
Almost 400 MPs have signed an early day motion calling for that decision to be reversed.Almost 400 MPs have signed an early day motion calling for that decision to be reversed.
It was tabled by Kate Hoey MP, who chairs the All-Party Parliamentary Group for sub post offices.It was tabled by Kate Hoey MP, who chairs the All-Party Parliamentary Group for sub post offices.
Ms Hoey said post offices must be preserved because they provided vital services and strengthen local communities.Ms Hoey said post offices must be preserved because they provided vital services and strengthen local communities.
The campaign is also backed by Citizens Advice.The campaign is also backed by Citizens Advice.
Citizens Advice's Tony Herbert said: "The closure of many post offices has already had a profound impact on the local communities they served, hitting pensioners and disabled people particularly hard.Citizens Advice's Tony Herbert said: "The closure of many post offices has already had a profound impact on the local communities they served, hitting pensioners and disabled people particularly hard.
"The government should recognise the role of the post office at the heart of the community and invest in the future of the post office network.""The government should recognise the role of the post office at the heart of the community and invest in the future of the post office network."