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MPs in call to save post offices MPs in call to save post offices
(about 6 hours later)
MPs are calling on the government to protect the Post Office network.MPs are calling on the government to protect the Post Office network.
A Commons Trade and Industry committee report will say unless action is taken the benefits the Post Office provide to communities could be "lost forever". A Commons Trade and Industry committee report will say unless action is taken, the benefits the Post Office provides to communities could be "lost forever".
It says sub postmasters feel a "sense of betrayal" over plans such as the scrapping of the Post Office card account - a key source of revenue. It says sub-postmasters feel a "sense of betrayal" over plans such as the scrapping of the Post Office card account - a key source of revenue.
Earlier this month, a petition with four million signatures was handed to Downing Street over the issue.Earlier this month, a petition with four million signatures was handed to Downing Street over the issue.
The National Federation of Sub postmasters handed in the petition which called for urgent action to protect rural post offices. The National Federation of Sub-postmasters handed in the petition which called for urgent action to protect rural post offices.
Tony Blair has said people were changing the way they used post offices and there can be no extra subsidies.Tony Blair has said people were changing the way they used post offices and there can be no extra subsidies.
There are more than 14,000 Post Office branches in the UK, roughly divided between rural and urban areas and down from more than 18,000 in 1999.There are more than 14,000 Post Office branches in the UK, roughly divided between rural and urban areas and down from more than 18,000 in 1999.
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rural post offices make money72% of sub postmasters are uncertain about the future, says PostcommRevenue from services withdrawn from post offices fell £168m in past year POST OFFICES IN CRISIS Despite subsidies of £150m, post offices lost £111m in 2005Postcomm estimates 1,500 of 8,000 rural post offices make money72% of sub-postmasters are uncertain about the future, says PostcommRevenue from services withdrawn from post offices fell £168m in past year
Campaigners say a further 6,000 are under threat, with the current £150m-a-year subsidy for the rural network due to be withdrawn in 2008.Campaigners say a further 6,000 are under threat, with the current £150m-a-year subsidy for the rural network due to be withdrawn in 2008.
The government says the 800 smallest post offices are used by an average of 16 people a week.The government says the 800 smallest post offices are used by an average of 16 people a week.
The cross-party committee says there is a reluctant acceptance that current network of branches cannot be sustained.The cross-party committee says there is a reluctant acceptance that current network of branches cannot be sustained.
However, it insists that the 4,000 offices suggested by Royal Mail is too few. The committee also says the government may need to put in more money.However, it insists that the 4,000 offices suggested by Royal Mail is too few. The committee also says the government may need to put in more money.
The Post Office card account, which is used to access pensions and benefits, is set to be withdrawn.The Post Office card account, which is used to access pensions and benefits, is set to be withdrawn.
The Commons Trade and Industry committee points out that sub postmasters are already losing income from selling television and driving licences. The Commons Trade and Industry committee points out that sub-postmasters are already losing income from selling television and driving licences.
Almost 400 MPs have already signed an early day motion calling for the decision to withdraw the Post Office card account to be reversed.Almost 400 MPs have already signed an early day motion calling for the decision to withdraw the Post Office card account to be reversed.
Mr Blair said the government would look at the options, but the reason that there is a problem is that more and more people are using bank accounts rather than the post office.Mr Blair said the government would look at the options, but the reason that there is a problem is that more and more people are using bank accounts rather than the post office.