Warning over post office reforms

The Government's reforms of the post office network could be undermined by deficiencies in the training of staff and the inflexibility of its proposals, ministers have been warned.

A committee of MPs said reforms were needed, but it raised a number of concerns about how they would be delivered.

Some outlets could become unsustainable if services are reduced under the new "local" model of post office, said the Business Committee.

The locals model, under which postal services are offered in stores other than main post offices, could reduce the number of major retailers running outlets, said the report.

"For example, it has been reported that One Stop, which is owned by Tesco, is interested in taking over 600 post offices.

"A full-scale takeover of our post offices by a few companies, with the reduced opportunities for individuals owning post offices, would change the ethos of many post offices," said the report.

Labour MP Adrian Bailey, chairman of the committee, said: "Post offices provide vital services to local communities up and down the country, particularly for those in rural or deprived areas.

"It has long been clear that the Post Office network needs to undergo significant change in order to place it on a long-term sustainable footing and to increase its geographical coverage. Any such reform must be more than just a consolidation of the existing network. The committee supports the direction of travel set out by the Government."

Postal Affairs Minister Norman Lamb said: "The Post Office plays a vital role in our communities and this Government is committed to securing its future. There will be no programme of Post Office closures under this Government and we have committed £1.34 billion to maintain the network of at least 11,500 post offices across the country."

Billy Hayes, general secretary of the Communication Workers Union called for a moratorium on any formal rollout of the locals model. He said: "We share the committee's fear that the locals model will only work for large companies like Tesco through their convenience store network which could suck in limited services and change the ethos of the publicly owned Post Office for ever."