Government's failure to save Post Offices questioned by the Liberal Democrats today

12.00.00pm BST (GMT +0100) Mon 16th Oct 2006

The Liberal Democrats will today put themselves at the head of a nationwide campaign to save Britain's post office network following the Government's failure to take the tough decisions necessary to save our post office and Royal Mail services. After reports in today's Financial Times that the DTI is set to back another major post office closure programme, the Lib Dems have used their Commons opposition day to call for urgent action. Lib Dem Shadow Trade Secretary Edward Davey says: "It now seems that the Government's solution to 'stabilise' the Post Office will involve thousands more branch closures, bringing hardship and financial exclusion to millions."

The Liberal Democrat Motion

That this House believes the Government is putting the future of the Post Office network and of Royal Mail at risk by their continued failure to take the tough and overdue decisions needed; further believes that many local post offices have closed or are under threat because of the uncertainty over the future of the subsidy to rural post offices after 2008 and the withdrawal of public sector business from the network, including the pension book, the television licence, passports and the decision to withdraw the Post Office card account when the existing contract expires in 2010; shares Postcomm's concern that over 6,500 remaining rural post office branches are vulnerable and could close over the next few years; further believes that the Post Office network provides significant social and economic benefits and can play a key role in tackling financial exclusion and helping rural and deprived urban communities to survive and thrive; further believes the delays in finalising the investment package for Royal Mail is undermining Royal Mail's ability to compete in the postal market following liberalisation last January threatening jobs and Royal Mail's market share; and therefore calls on the Government to end this paralysis in decision-making at the heart of Government so that the Post Office network and Royal Mail can make the investments they need with greater certainty about a sustainable and stable commercial future.