July 2008

As a brand name the Post Office is almost as recognisable as Coca Cola.  But like every business the Post Office faces challenges.  The pace of change has been dramatic in the last twenty years.  New technology, online services and the choice of direct payments have all affected the way the Post Office works.

The Post Office network has 4 million fewer customers than four years ago and the network is losing £3.5 million a week.  That’s why the Post Office announced recently that some offices would be closed in an effort to make the remaining network viable and sustainable.  There are currently 14,000 branches nationally of which 2,500 have been earmarked for closure.  Two local post offices have been targeted – Wilton Drive in West Monkseaton and Front Street Monkseaton. No one wants to see closures and there is a consultation process which I would encourage people with a view to take part in.

The Government believes in the importance of a viable, sustainable post office network and is backing the network with £1.7 billion up to 2011.  The truth is that without that investment many more post offices would close.  But some postmasters decide it’s time to give up the struggle and unlike the period from 1979 to 1997 when 3,500 post offices closed, they can expect compensation.

In some areas local councils have come forward with plans to help – though none of the parties in North Tyneside did so.  The issue comes back to cost and whether locally or nationally we can justify a subsidy to keep every post office open when fewer and fewer people are choosing to use them.  Yet for the people who do use post offices and those who see the post office as a vital part of local communities the question is more how can we afford to see them close.  That’s the challenge we face but making tough choices is what leadership is all about.