02/06/2008

NFSP Welcomes Report on the future of the Post Office Network

The NFSP today (June 2) welcomes a report from the Business & Enterprise Committee which acknowledges the threat to the post office network if subpostmasters lose the right to handle state pensions and benefits.

The Committee’s report on the future of the post office network backs claims by the NFSP that the loss of the Post Office Card Account (POCA) would have a devastating impact.

The Federation has warned that up to 3,000 post offices could be forced to shut if the contract to run the successor to the current POCA contract is lost. A decision on who has won the POCA 2 tender is expected this summer.

Of the 24 million visits made to post offices every week, 6.5 million are made by POCA customers, highlighting the importance of the POCA contract to subpostmasters.

Commenting on the report, George Thomson, General Secretary of the NFSP, said: “Today’s report strengthens our warning that the Government must act to protect post offices left in the network following Network Change by awarding the POCA 2 contract to Post Office Ltd.

“As the Committee’s report accepts, failure to do so would have a devastating effect on the viability and sustainability of the network.”

The NFSP today also backs concerns raised by the Committee on the threat to the post office network from proposals to break up Royal Mail Group.

With income from Royal Mail transactions making up the largest part of subpostmasters pay, the Federation is concerned about the effect this break up would have on this vital source of income.

Mr Thomson said: “It beggars belief that separate reviews of the industry by Postcomm and the Government’s independent review panel have yet to assess the post office network and its integral role within Royal Mail Group, yet both are nonetheless considering separating the Post Office from Royal Mail.

“Under current circumstances, the NFSP believes it is inconceivable that Post Office Ltd could be withdrawn from Royal Mail Group.”

In addition, the NFSP supports the Committee’s demand for the need to safeguard against further post office closures after Network Change.

The Federation has reluctantly accepted the closure of up to 2,500 post offices under Network Change in order to achieve a viable network, but states that there should be no further closures.

Mr Thomson said: “The Government and Post Office Ltd must now focus their efforts to deliver the investment and new products and services required to make sure that the new post office network is given the best possible chance to survive and thrive in the future. With a population of 60 million people, the Federation believes it must be possible to support 11,500 post offices in the UK.”

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For more information contact Matt Adams on 07958 385860

12/05/2008

Subpostmasters deliver clear message to Government over card account contract

Subpostmasters today delivered a clear message to Government that thousands more post offices will shut unless they are given the right to continue handling state pensions and benefits.

At the annual conference of the National Federation of SubPostmasters, Post Office Minister Pat McFadden came under intense pressure to prevent a “catastrophic decline”' in the network by awarding it the contract for the new Post Office card account (POCA2).

The card account, used by four million people every week to access pensions and benefits, is worth £200m a year to Post Office Limited, and up to 12% of subpostmasters’ pay. A decision on who has won the tender for the new POCA contract will be made by the Department of Work and Pensions in the summer.

George Thomson, General Secretary of the NFSP, told the conference in Torquay: “We have a massive crisis. If the Government, at the end of July, awards the contract for the POCA2 to anyone else, then our network will be in catastrophic decline. 3,000 offices will be forced to close.

“Subpostmasters and the public want a network with a long term future. It’s time for the Government to get its act together when it comes to the post office network.”

Mr Thomson said the Government had an opportunity to show the country it is “absolutely serious about making sure that the 11,500 offices left have a future” by awarding it the POCA2 contract.

And he said it was the “economics of the madhouse” for one government department to consider taking the £200m POCA contract away while another department is paying the Post Office £150m a year to support unprofitable post offices.

Mr Thomson urged Mr MacFadden to focus on using the network to create a Post Bank, giving extra work to subpostmasters left in the network following Network Change and bringing the UK Post Office in line with its successful, profitable counterparts in Italy, France and Germany.

“If the Department of Work and Pensions awards the POCA contract to anyone else but the Post Office, you are in effect killing off the potential for a Post Bank before it has even started,” he said.

NFSP members put pressure on Mr MacFadden to award Post Office Ltd the POCA contract. Subpostmaster David Hartley said: “I do not see how you can say we are on a level playing field. Can I ask that Government at least puts us back on the pitch.”

Mr MacFaddden told Conference delegates that while the Post Office was in a strong position to win he contract, he was unable to announce a decision. Instead, the decision would be taken by the DWP and announced later this year.

He said the Post Office would have to develop new products to give people more reasons to use the network and stressed the network would still be three times bigger than all supermarket chains put together after Network Change and there were many reasons to be optimistic.

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For more information contact Matt Adams on 07958 385860.

Notes to editors:

An NPSP survey showed that card account transactions account for up to 12% of subpostmasters’ pay. If lost, this could lead to as many as 3,000 sub post offices going out of business, the NFSP estimates.

Of the 24 million visits made to post offices every week, 6.5 million are made by POCA customers, highlighting the importance of the POCA contract to subpostmasters.

12/05/2008

3,000 more post offices may shut if card account contract is lost

As many as 3,000 more post offices could be forced to close if the Government removes subpostmasters’ right to handle state pensions and benefits payments, the NFSP warns.

The number of possible closures represents 25% of the sub post offices due to remain at the end of the current Network Change closure programme.

The NFSP is urgently calling on Government to award the contract to run the new Post Office card account (POCA) to Post Office Ltd.

The new contract, dubbed POCA2, will next year replace the current card account used by around four million people every week to access pensions and benefits at the Post Office. The Government is currently deciding where to award the contract.

An NPSP survey showed that card account transactions account for up to 12%[i] of subpostmasters’ pay. If lost, this could lead to as many as 3,000 sub post offices going out of business, the NFSP estimates.

Of the 24 million visits made to post offices every week, 6.5 million are made by POCA customers, highlighting the importance of the POCA contract to subpostmasters.

The NFSP’s warning comes as hundreds of subpostmasters gather to discuss their future at the annual conference of the NFSP, which starts on Monday (May 12) in Torquay.

George Thomson, General Secretary of the NFSP, said: “The Post Office card account is a crucial lifeline to thousands of subpostmasters already struggling to keep their businesses going. If the Government chooses not to award the POCA2 contract to the Post Office, up to 25% of those post offices remaining open will be forced to close. 

“Furthermore, the on-going Network Change closure programme will fail if the 11,500 or so post offices which remain are not properly supported in the future.

“The Government must therefore demonstrate that support by awarding the successor to the Post Office card account to the Post Office. Not to do so would be catastrophic.

“Millions of pensioners and those on benefits chose to access their money at the Post Office. This choice is what keeps so many subpostmasters in business. If the Government wants a sustainable post office network in years to come, it must choose to support our members accordingly.

“Retaining the contract for POCA2 will not be a cure-all for the many challenges faced by the post office network. It will, however, provide the Post Office with breathing space to deliver the new products and services required to ensure that the new post office network is given the best possible chance to survive and thrive in the future.”

The Department of Work and Pensions announced in 2006 that it planned to axe the POCA in 2010. Following a major campaign by the NFSP, which led to a petition of four million[ii] names being handed to Downing Street in October 2006, the Government decided to introduce a successor to POCA.

The contract to run the new card account was put out to tender in line with EU regulations. The deadline for tenders ended in March this year and a decision on who has won the contract is expected by mid-summer.

The debate surrounding POCA 2 will feature strongly at the NFSP annual conference, to be attended by subpostmasters[iii] from every corner of the UK.

Pat McFadden MP, Minister for Postal Services, will deliver a keynote speech at noon on May 12. Alan Cook, Managing Director of Post Office Ltd, will speak at 2.30pm on May 12.

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Notes to editors:

The NFSP annual conference will be held at the Riviera International Centre, Chestnut Avenue, Torquay, Devon, TQ2 5LZ, from Monday May 12 to Wednesday May 14, 2008. Each day of conference will begin at 9am.

Footnotes:

[i]  Ipsos Mori survey

• In 2006, the NFSP commissioned a report by leading market research firm Ipsos MORI on post office earnings which highlighted the crucial importance to subpostmasters’ livelihoods of the Post Office Card Account (POCA) – used by 4 million people to claim pensions and benefits.

• The report found that in 2006, POCA accounted for 10% of subpostmasters’ pay (12% in deprived urban areas) with 35% of those interviewed by Ipsos MORI saying their biggest fear was losing the card account.

[ii]   The NFSP’s petition, delivered during a rally and lobby in Westminster on October 18, 2006, called on Government to reverse its decision to axe the Post Office Card Account. With four million signatures, it was the largest petition ever handed to a Government during peacetime.

[iii]  Subpostmasters are independent businessmen and women who are contracted to Post Office Limited to sell its products and services, as well as on the behalf of Government departments such as the Department of Work and Pensions.

18/03/2008

NFSP Statement on House of Commons Debate

George Thomson, General Secretary of The National Federation of SubPostmasters, said: “The NFSP is committed to working towards creating a viable and sustainable Post Office network, and we welcome any dialogue from all political parties and organisations which helps achieve this goal.
 
“However, while the NFSP bitterly regrets the closure of up to 2,500 post offices, we believe the Network Change Programme is a necessary first step in establishing a sustainable post office network for the future and oppose calls for it to be suspended mid-way through its implementation.
 
“Many subpostmasters have for too long been living with real uncertainty about their futures while struggling to stay open due to insufficient work to maintain the existing network of 14,000 post offices.

“This is why reducing the network in a planned, compensated manner now is the only option to make sure there is a network in the future, and to ensure that the vast majority of communities keep their local post office. The alternative to Network Change is mass unplanned post office closures.

“The NFSP also rejects criticism of the Network Change six-week public consultation process, which we feel is more than adequate to allow full public input into the proposals balanced against the need to end the uncertainty faced by subpostmasters. 

 “If the motion placed before the House of Commons is successful, we believe it will result in more uncertainty for those subpostmasters who are ready to accept the compensation deal on offer and leave the network with much of their original investment intact.

“Suspending Network Change will also threaten the stability of those offices which will make up the new 11,500-strong post office network, which will benefit from savings made by Post Office Ltd and the migration of Post Office customers to other branches. 

“We have always made it clear, however, that the Government must now focus its efforts to deliver the investment, new products and services required to make sure that the new post office network is given the best possible chance to survive and thrive in the future. 

“We believe it is essential that the contract for the successor to the Post Office card account, tenders for which must be submitted by the end of March, is won by Post Office Ltd. Otherwise, we fear that the purpose and funding behind the Network Change programme will be immediately undermined and thousands more post offices will close in the next few years. 

“We also believe that the Government - at national, devolved and local level – should always “think Post Office first” when awarding contracts for government services and looking for ways to provide information to citizens.”

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08/02/2008

NFSP welcomes MPs' broad support for Network Change

The National Federation of SubPostmasters today welcomes the support of an influential House of Commons cross-party committee on progress so far of the ongoing Network Change Programme of post office closures. The NFSP also urges MPs to now turn their attention to delivering a sustainable future for post offices remaining in the network.

In its report today, the Business, Enterprise & Regulatory Reform Committee reiterates the need for a managed closure programme to end the uncertainly faced by subpostmasters and customers about the future of the post office network.

The Committee also backs calls by the NFSP that the Government and Post Office Limited (POL) must make sure the remaining 11,500 post offices left in the network are sustained by providing new work, starting with the Department of Work Pensions awarding to POL the contract to run the successor to the Post Office card account.

In his evidence to the Committee last week, George Thomson, General Secretary of the NFSP warned that the Post Office “will start to unravel” if the card account contract is awarded to anyone else.

Mr Thomson said: “We welcome the broad support in today’s Committee report for the need to properly manage closures so that those subpostmasters left in the network have a more certain future.

“The NFSP has always said that these post office closures must be backed up with new work, and that this round of closures must be the last. Our vision is for a network of 11,500 post offices at the heart of communities across the UK, providing high quality postal services, banking and local retail facilities. We now call on the Government and Local Authorities to show the political courage to realise this vision.

“The first step is to ensure that the Post Office is awarded the contract to run the successor to the POCA. We are also calling on the Government to give serious consideration to creating a Postbank, to deliver customers’ banking needs and to bring the UK’s Post Office in line with its successful, profitable counterparts in Germany, France and Italy.”

 “This action is vital if the Government is to reverse the decline of the nation’s post office network and to achieve a stable and bright future for subpostmasters and Post Office customers alike. Otherwise, we fear that the purpose and funding behind the Network Change programme will be immediately undermined and further unplanned post office closures will result.”

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For more information, contact Matt Adams at Cobb PR on 01323 416999

16/10/2007

Thousands Of Subpostmasters To Focus On The Future At NFSP Exhibition

Thousands of subpostmasters from across the UK will gather at the NEC in Birmingham this weekend to discover new ways to increase the viability of their post offices.

The exhibition called Subpostmaster 2007, organised by The National Federation of SubPostmasters (NFSP), will see more than 150 exhibitors display exciting new products aimed at boosting the income of subpostmasters.

George Thomson, General Secretary of the NFSP, said: “As up to 2,500 post offices are closed across the UK, it is vital that subpostmasters left in the network are given every opportunity to generate new income.

“It is up to everyone to make sure that the future of the Post Office network is sustainable and viable. For subpostmasters this means making sure that all commercial opportunities are explored and the exhibition will highlight hundreds of superb retail ideas.”

Products ranging from DVD hire and flowers to mobile phones and security systems will be on show at the exhibition, with 50% of exhibitors taking part in the event for the first time.

Post Office Ltd (POL) will also have a stand at the event, and POL staff are expected to talk about new products and services.

Key seminars will be held during the exhibition including a Q&A session with senior members of the NFSP tackling all issues facing the Post Office network.

The event is being held at the NEC in Birmingham on October 20 and 21. Doors open at 10am.

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The media is welcome to attend the exhibition. For more information, contact Matt Adams at Cobb PR on 01323 416999

08/10/2007

Subpostmasters Back Regulator’s Advice to Government on Future of Post Office Network

The National Federation of SubPostmasters (NFSP) today welcomes calls by the postal regulator Postcomm for a sustainable post office network following the current closure programme.

The NFSP bitterly regrets the planned closure of up to 2,500 post offices, but agrees it is now time to focus on building a viable thriving network for the future and to ensure there are no more rounds of closures.

Both the regulator Postcomm and the NFSP believe that in order to survive, the post office network will need a mix of services and products meeting the needs of the public and provided in a customer-friendly environment.

The NFSP supports Postcomm’s calls for all banks to give their customers access to their bank accounts through local post offices.

The Federation also welcomes Postcomm’s recognition that the Post Office card account, POCA, is crucially important to the future of the network, and must remain a post office based service.

The NFSP last year fought a successful campaign to persuade Government to introduce a successor to the POCA, which accounts for 10% of subpostmasters’ income, when it is stopped in 2010, and to recognise the vital social role post offices play in the UK by continuing with financial support for the uneconomic parts of the post office network.

As part of the campaign, a petition of more than four million names was handed to No 10 Downing Street, the largest ever peacetime petition handed to a Prime Minister.

George Thomson, NFSP General Secretary, said “We are delighted that Postcomm recognises the value subpostmasters add to the communities they serve, as unique businesses with immense customer knowledge.

“The network is in urgent need of action to ensure our post offices can provide the public with local access to postal services; banking and financial services; access to national and local government services; and an anchorage for neighbourhood shops.”

Following the report, the Federation is pleased that Postcomm has again highlighted the fact that the Government also has an important role to play in supporting post offices by ensuring the public can undertake a wide range of government transactions and access government services over post office counters.

The Federation agrees that Post Office Ltd should work on building successful links with commercial partners who recognise the benefits of aligning with the excellent Post Office brand and unrivalled geographic network. Past successes include bureau de change, bill payment, telephony and insurance services for the public.

Postcomm acknowledges the need to provide more support to the people who deliver these services on the frontline, which today is also welcomed by the NFSP.

Grants to improve post offices and the availability of business advice and training can only assist subpostmasters in providing an attractive offering for customers well into the twenty-first century.

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For more information, contact Matt Adams at Cobb PR on 01323 416999

Notes to editors:

• Postcomm, the Postal Services Commission monitors developments in the Post Office network, and is required to provide advice to the Secretary of State for Business, Enterprise and Regulatory Reform. Postcomm’s annual report to Government on the network of post offices 2006-07, A Sustainable Customer Focused Network, is published on Monday 8 October 2007. 
• The National Federation of SubPostmasters (NFSP) represents the interests of the UK’s 12,000 subpostmasters. Subpostmasters are the private business people who run sub post offices (97% of the UK’s post office network). 
• Eight banks and building societies enable their customers to access personal current accounts at post office counters, but three major banking groups which include HSBC, Halifax, Bank of Scotland, Royal Bank of Scotland, NatWest accounts do not. 
• NFSP is currently involved in discussions regarding the Post Office becoming a bank. 
• Post Office card accounts are plastic card based accounts designed for state benefit and pension recipients to access their payments over post office counters. 4 million people use the card account which brings in around 10% of a sub post office’s net pay. The current contract for the Post Office card account runs out in 2010, the Department for Work and Pensions contract for its successor is currently out to tender. 
• Post Office Ltd has the largest bureau de change in the UK, with 25% market share. The Post Office is the second largest provider of mobile phone top-ups and the third largest provider of travel insurance. Other Post Office financial services include car insurance, home insurance, credit cards and savings accounts. Over half of all household bills paid by cash or cheque are paid at a post office. 
• Around 75% of post offices have an attached shop. The shop and Post Office parts of the businesses are usually dependent on each other for survival.

04/10/2007

NFSP Statement On Building A Sustainable Post Office Network

The National Federation of SubPostmasters believes that the time has come to focus on the future by building a viable and sustainable post office network.

The NFSP bitterly regrets the closure of up to 2,500 post offices but accepts that the move, backed up by funds to compensate those forced to shut, is a necessary first step in establishing a sustainable post office network for the future in view of the level of decline in Government business in recent years.

The Federation welcomes the Government’s commitment to a successor to the Post Office Card Account, which generates on average 10% of subpostmaster income,  compensation for those forced to close and an extension to the Social Network Payment to 2011, all of which the NFSP campaigned for in 2006.

However, we still wait to learn how the Government and Post Office Ltd plan to use the post office network to deliver key services and exciting new products which will be vital if the network is to become sustainable.

We accept that subpostmasters have for too long lived with uncertainty, which has left some existing subpostmasters unwilling to invest in the network and which has made others hesitant about becoming a subpostmaster.

We hope the Network Change programme is delivered efficiently and within the proposed timescale so the uncertainty affecting subpostmasters and the public can be removed as soon as possible.

We shall be keeping up the pressure on Government to stay true to its commitments and to deliver the investment and new products and services required to make sure that the new network is given the best possible chance to survive and thrive in the future.

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For more information, contact Matt Adams at Cobb PR on 01323 416999

03/10/2007

NFSP Statement On Planned CWU Postal Strike Action

The National Federation of SubPostmasters (NFSP) today claims the on-going strike action facing the Royal Mail Group is in danger of spiralling out of control.

The NFSP is calling on the CWU and Royal Mail Group to resolve its dispute before serious damage is done to the Post Office network, and the public’s faith in it.

Once again, the Federation also wishes to make clear that its members are not involved in the latest planned wave of strike action affecting other parts of the Royal Mail Group, which is scheduled to run between October 4 and 6 and then between October 8 and 10.
 
The UK’s network of sub post offices – which make up 97% of the national post office network – is unaffected and will remain open for business as usual.
 
NFSP General Secretary George Thomson said: “With the latest strike action  announced between the CWU and the Royal Mail Group, I now fear this dispute is in danger of spiralling out of control.

“In addition to the dispute over pay, there is now growing concern relating to the provision of pensions, which threatens to escalate.

“Dispute without resolution has the very real potential to weaken the Royal Mail Group, and ultimately the Post Office.

“As the Network Change closure programme is delivered, we hope that a sustainable and viable post office network can be created to safeguard the jobs of so many subpostmasters and the communities which depend on them.

“What must therefore be avoided is a prolonged period of disruption to both private and business mail users which will inevitably cause damage to the postal services industry as a whole.

“In view of this, we again urge all sides to re-double their efforts to reach a satisfactory conclusion to this dispute as soon as possible.”

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For more information, contact Matt Adams at Cobb PR on 01323 416999

02/10/2007

NFSP Statement on Network Change Local Public Consultations

As Post Office Ltd announces the first local public consultations as part of the Network Change programme, the National Federation of SubPostmasters wishes to reiterate its belief that post office closures are vital for the future sustainability of the post office network.

NFSP General Secretary George Thomson said “As the local public consultations begin in Kent, East Yorkshire and the East Midlands the process is about ensuring a viable network for customers and subpostmasters. Although regrettable we believe that these closures are necessary to ensure the remaining post offices are able to thrive in the future.”

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13/09/2007

NFSP Statement on new planned CWU strike action

The National Federation of SubPostmasters (NFSP) today expresses its disappointment that talks between the CWU and Royal Mail have broken down.

The NFSP also wishes to reiterate that its members will not be involved in any further strike action affecting other parts of the postal services sector.

The UK’s network of sub post offices – which make up 97% of the national post office network – is unaffected and will remain open for business as usual.

NFSP General Secretary George Thomson said: “I am today very disappointed to learn that talks have broken down, and I would urge both sides to redouble their efforts and continue the good work of the last four or five weeks.

“We hope the CWU and the Royal Mail Group can finalise proposals which will be acceptable to both sides.

“As the NFSP has previously stated, a lengthy dispute will undoubtedly inconvenience both private and business mail users, and therefore cause damage to the postal services industry as a whole.”

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For more information, contact Matt Adams at Cobb PR on 01323 416999

09/08/2007

Statement From The National Federation Of SubPostmasters On Planned Strike Action

The National Federation of SubPostmasters (NFSP) wishes to make clear that its members are not involved in the latest wave of strike action affecting other parts of the postal services sector, which is scheduled to run for a week starting on Friday 10 August 2007. The UK’s network of sub post offices – which make up 97% of the national post office network – are unaffected and will remain open for business as usual.

NFSP General Secretary George Thomson said: “A lengthy dispute will undoubtedly inconvenience both private and business mail users, and therefore cause damage to the postal services industry as a whole. We are concerned that this will ultimately weaken Royal Mail Group and therefore the Post Office. In view of this, we urge all sides to re-double their efforts to reach a satisfactory conclusion to this dispute as soon as possible.”

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For more information, contact Matt Adams at Cobb PR on 01323 416999