Written-UK Government’s proposals for the future of the Post Office Network [DTI statement 14 December]

Whilst Post Offices are a non-devolved matter, the Welsh Assembly Government has always recognised the social and community value of post offices, particularly in relation to supporting vulnerable people in our most isolated and most disadvantaged communities.. We understand and support the role that post offices play in sustaining communities and promoting financial inclusion.


Against that background, I  have continuing concerns about the UK Government’s proposals for the future of the Post Office Network, although I welcome a number of aspects of the Secretary of State’s announcement on 14 December. I and my colleagues in the Assembly Government have made clear on many occasions our strong view that post offices play a vital role in the communities which they serve. The importance of the local post office stretches far beyond providing a postal service and I remain concerned about the impact the projected closures could have on the affected communities and on vulnerable groups such as the elderly, people with disabilities and single parents. We have expressed very clearly these concerns in the representations we have made to the UK Government about the future of the network.

I welcome the decisions to extend the UK Government’s annual subsidy of £150m and to continue with a new Post Office card account after the current contract ends in 2010.  The Assembly Government has lobbied hard for these outcomes.  

I note the reference in the Secretary of State’s announcement to consulting about the role the devolved administrations and local authorities might play in influencing how postal services in their areas are best delivered in the future. The consultation paper does not go into detail about this suggestion, but the Assembly Government will reflect, take soundings and contribute positively to that process – to ensure that we continue to represent Welsh interests as effectively as possible.

The consultation document sets out detailed criteria against which the future of the network  must be established. I welcome the explicit undertaking that these criteria will have to be applied differentially to meet local circumstances. The Assembly Government will therefore consider the proposed new access criteria for post offices very carefully, together with the proposal to set up at least 500 new Outreach locations, to ensure that they best reflect the needs of communities throughout Wales.

The value which the Welsh Assembly Government attaches to post offices is reflected in the policies we have adopted. The Assembly Government set up the Post Office Development Fund, which has awarded grants totalling £4.1m to enable subpostmasters across Wales to modernise properties and diversify services and products. We were the first administration in the UK to provide these grants in both rural and urban deprived areas.  Our recently announced proposals for small business rate relief demonstrate our continuing strong commitment to the future of post offices throughout Wales by granting them enhanced relief from business rates.


There will now be a period of consultation on the announcement by the Secretary of State for Trade and Industry.  The Assembly Government has already made its views clear to UK Government Ministers and we shall continue to do so, emphasising the needs of Wales and the social value that post offices provide.

In addition to our own efforts, I want people in Wales to play their part in the consultation and make their views known clearly to the UK Government.