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24/01/2012
Subpostmasters Welcome 'Essential' 10-Year Deal With Royal Mail
The National Federation of SubPostmasters (NFSP) has welcomed today’s announcement of a 10-year Inter-Business Agreement between Post Office Ltd (POL) and Royal Mail Group (RMG) from 1 April 2012.
NFSP General Secretary George Thomson said: “The 10-year IBA is essential for the future wellbeing of our post offices, and means that the public and small businesses can continue to access Royal Mail services in the trusted environment of their local post office. Subpostmasters will welcome the security which this news provides, which will help provide them with the confidence necessary to invest in their businesses for the future.
“The NFSP has been calling for a minimum 10-year IBA since plans for Royal Mail privatisation and the separation of the two companies were announced, and we have worked tirelessly with the government, POL and RMG to achieve it. Income from Royal Mail services currently accounts for a third of subpostmasters’ and POL’s income. Without this deal, subpostmasters would have faced even greater difficulties in running their businesses and continuing to provide vital services to their communities.”
“With the 10-year IBA in place, ministers must now turn their full attention to providing more government services at post offices, and making their pledge of the post office as the ‘front office for government’ into a reality.”
The news comes the day after Mr Thomson was re-elected by NFSP members to serve a second five-year term as General Secretary.
He said: “I am honoured that the UK’s subpostmasters have put their faith in me to continue to represent their interests, and the interests of our treasured national network of post offices. I am optimistic that the next five years will see our post offices maintain their place at the heart of local economies and communities - remaining as the front shop for Royal Mail on our high streets, but also providing the full range of national, devolved and local government services, providing longer opening hours for customers and under a mutualised Post Office model, giving subpostmasters and staff a real say in how the company is run.”
03/11/2011
NFSP Response to NS&I Product Removal
In response to today's announcement by NS&I on the removal of services from post offices, George Thomson, General Secretary of the National Federation of SubPostmasters (NFSP), said: “We are surprised and bitterly disappointed by NS&I’s decision to remove certain products from sale to the public at post offices. However, we welcome the news that Premium Bonds - which account for three quarters of all NS&I transactions over post office counters - are to remain available. While all business at post offices is important, the NS&I products being withdrawn accounted for only £700,000 in sales commission for subpostmasters last year, or around £60 per post office.”
“As NS&I appears to be moving towards an online-only presence, millions of people will be reassured that the Post Office continues to offer an extensive range of its own savings products which are accessible both online and in post offices in every community in the UK.
“This news does reinforce the urgent need for ministers to deliver on their pledge to make the Post Office the ‘front office’ for government. This would allow the public to access a full range of government information, identity and payment services in the trusted and convenient environment of their local post office; and provide a vital new source of income for post offices across the land.”
20/05/2011
“We need more government work”, subpostmasters will tell Annual Conference
• Members will give cautious welcome to ministers’ plans for network’s future
• Conference to hear thousands of post offices still struggling financially
HUNDREDS of subpostmasters will gather at their Annual Conference next week to call on the government to safeguard the future viability of the 11,500-strong national network by introducing more work at post offices.
Members of the National Federation of SubPostmasters (NFSP) from across the country will convene in Torquay to discuss action required to safeguard the network’s future and prevent further post office closures.
The event will also hear keynote speeches from Postal Affairs Minister Edward Davey MP and Paula Vennells, Managing Director of Post Office Ltd (POL), on plans for the network.
It follows proposals, unveiled this week and backed by the NFSP, to convert the Post Office into a mutual, with subpostmasters, Post Office staff and customers having a greater say in running the company.
The NFSP has called on the government to deliver on its pledge to transform post offices into the ‘front office for government’, by allowing the public to access a wide range of central and local government services at local post offices.
Trials commenced this week at 106 post offices in the North East of England involving checking customers’ documents on behalf of the Pensions Service. The pilot scheme has been welcomed by the NFSP, but Conference delegates will hear that further work is needed from across all government departments.
Meanwhile, subpostmasters still await news of the future of Royal Mail business at their post offices, after the NFSP called on POL and Royal Mail to agree a 10-year deal before the companies separate.
George Thomson, General Secretary of the NFSP, said: “Conference this year comes at a pivotal point for the post office network. As plans to privatise Royal Mail and separate POL reach an advanced stage, we are seeing early signs that the government is prepared to place more work with our members. I have no doubt that we can rise to the challenge.
“However, we will be calling on Mr Davey and his colleagues to ensure that many more revenue streams are forthcoming and that post offices truly become the ‘front office for government’, to allow the public to interact with the state in a trusted environment at their local post office. The Pensions Service trials in the North East must be the start of regular work.
“A 10-year Inter-Business Agreement between POL and Royal Mail, to allow the public to continue to carry out Royal Mail transactions at local post offices, is another essential condition if our post offices are to maintain their place at the heart of local communities and their economies.
“Many thousands of subpostmasters remain in real difficulty. We cannot afford to lose any more services or contracts if we are to maintain our vital national network.
“The NFSP is in favour of a mutualised post office, but in reality only once POL is profitable will it be worth mutualising.”
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Subpostmasters from across the UK will be travelling to the three day conference, to start on May 23.
The 2011 Annual NFSP Conference is taking place at the Barcelo Torquay Imperial Hotel, Park Hill Road, Torquay, Devon, TQ1 2DG.
Journalists wishing to attend Conference should contact Matt Adams on 01323 416999 as soon as possible.
Regional media wishing to interview local subpostmasters attending the Conference should call Matt Adams on 01323 416999.
18/05/2011
NFSP welcomes mutualisation report but warns plans are a ‘pipe dream’ without new government work
The National Federation of SubPostmasters (NFSP) has welcomed today’s Co-operatives UK report as a positive step towards the creation of a mutualised Post Office, giving subpostmasters, staff and customers a far greater say in how the national network of post offices is run.
But the NFSP warned that a mutualised Post Office could only be achieved if “substantial” new government work was offered to the public through the network, to help Post Office Ltd become financially sustainable.
Co-operatives UK has undertaken the report at the request of the government, following a provision in the Postal Services Bill for the creation of a mutualised Post Office Ltd. The report will form the basis of a government-sponsored public consultation on Post Office mutualisation later this year.
In response to the publication of ‘Mutual options for Post Office Ltd’, NFSP General Secretary George Thomson said: “This report, which comes after several years of work by the NFSP pushing the case for mutualisation, is an important step in revitalising the Post Office.
“A mutualised Post Office would see the achievement of a long-held ambition of the NFSP to better align the interests of Post Office Ltd and subpostmasters, who provide a trusted, professional and essential service in communities across the UK. It would also recognise the £2bn investment which subpostmasters have made in the national network of post offices; and give them, their customers and Post Office staff a far greater say in the future direction of the company.
“However, it is clear that for a mutualised Post Office to become a reality, the company must first be in good financial health. The only way this can be achieved is if ministers deliver on their pledge to deliver substantial new government work to post offices.
“By transforming the network into the front office for government, and offering the public more opportunities to carry out both specialised and day-to-day government transactions at their local post office, ministers can help create a financially stable Post Office Ltd and safeguard the future of thousands of individual post offices; while local post offices can help deliver the government’s agenda to combat digital exclusion and reduce its own administrative costs. Without this, mutualisation for the Post Office will remain nothing more than a pipe dream.”
03/05/2011
NFSP Response to CWU Poll
In response to polling published by the Communication Workers Union today, The National Federation of SubPostmasters (NFSP) General Secretary George Thomson said:
"As the only organisation that represents subpostmasters, the NFSP has led discussions over several months with Post Office Ltd (POL), Royal Mail and the government on new contracts for government services and the continuation of Royal Mail work at post offices.
"The NFSP has made clear that a minimum 10-year Inter-Business Agreement (IBA) between POL and Royal Mail is required if the companies are separated - both to allow the public and business to continue to access Royal Mail services at their local post office, and to secure the large proportion of subpostmasters' income which comes from carrying out work on behalf of Royal Mail. We have played a pivotal role in ensuring that both companies are working well together towards securing a mutually beneficial arrangement and we are confident that a 10-year commercial deal will be achieved.
"Equally, having won a commitment to transform post offices into the 'front office for government', we have pressed ministers to deliver on this pledge by making more government transactions, verification and information available to the public at post offices. Trials due to start this month at post offices in the North East of England for assisted pension and pension credit applications are an early but encouraging sign of moves by ministers to achieve this.
"The NFSP will continue to strive for the best possible outcome from forthcoming changes to the Post Office for subpostmasters, the national network of post offices and the 20m customers who use our post offices every week. In addition to the £1.34bn in government funding already committed, a 10-year IBA and new government work at post offices are undoubtedly the essential ingredients required to give our post offices a sustainable future. However, scaremongering about the future without an IBA and the forced introduction of the Post Office Local model does nothing but harm to the post office network and to subpostmasters."
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For more information contact Matt Adams at Cobb PR on 01323 416999.
22/03/2011
NFSP expresses anger over Royal Mail’s “scandalous” £12m broken promise
Subpostmasters have reacted with fury at the expected announcement by Royal Mail Group that promised bonus payments of more than £12m have suddenly been withdrawn.
The National Federation of SubPostmasters (NFSP) accused Royal Mail bosses of reneging on long-standing promises to reward staff for their contribution to the company’s performance targets being met.
The NFSP also voiced fears that the decision could show that plans are now underway for a quick “fire sale” of Royal Mail to a foreign buyer at a knock-down cost.
Royal Mail Group – the umbrella company which includes Post Office Ltd (POL) and Royal Mail Letters – launched a ‘phantom share’ scheme called the ‘Colleague Share Plan’ in 2007, which saw subpostmasters and employees across the Group rewarded with ‘shares’ and dividend payments each year if performance targets were met.
The company was due to ‘buy back’ all of the shares in 2012, with £12m in payments due to subpostmasters. Royal Mail Group is now set to announce that these shares are worthless and that no payment will now take place – yet senior managers continue to earn record bonuses.
NFSP General Secretary George Thomson said: “This scandalous decision is morally unjustifiable and intellectually incoherent. The company’s workforce has taken a lot of pain over the past five years, with 2,500 post office closures and 30,000 Royal Mail jobs lost. Subpostmasters and other Royal Mail Group workers have played a key role in the company’s transformation, often at great personal sacrifice.
“Subpostmasters are now rightly asking how it is possible that shares which were worth £12m are, at the stroke of a pen and through financial sleight of hand, suddenly valued at zero? Does this mean that Royal Mail, which the government plans to privatise next year at a price of several billion pounds, is now also worth nothing?
“This decision is nothing short of an insult to hard-working subpostmasters, many of whom are already struggling to maintain a Post Office service for their community; and is the opposite of the Big Society, with workers betrayed while senior managers pocket millions in record bonus payments.
“We will not allow committed, hard-working subpostmasters who provide vital services to their communities and to local economies to lose out. The only way Royal Mail and POL bosses can begin to repair this mess is by committing to transfer subpostmasters’ and other Royal Mail workers’ ‘phantom shares’ into real shares in Royal Mail when the company is privatised.”
Fears of a “quick fire sale”
Mr Thomson added: “Furthermore, we are concerned that today’s announcement signals the start of a ‘fire sale’ of the company, reducing its costs and its value to prepare for a quick sale at a knock-down price to a foreign competitor. While the NFSP has supported the principles behind the government’s proposals for Royal Mail and post offices, we believe that any sale of Royal Mail should only take place once POL is transformed into a profit-making company and can survive as an independent entity outside of Royal Mail Group.
“We also firmly believe that Royal Mail must remain in UK ownership, as a strategic part of the nation’s economy and society. This move is not just a betrayal of Royal Mail Group’s workforce – it is a potential betrayal of the UK public.”
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For more information contact Matt Adams at Cobb PR on 01323 416999.
Notes to editors:
• Royal Mail Group is currently made up of Post Office Ltd (POL); Royal Mail Letters; Parcelforce Worldwide; and GLS, the European parcels business. The entire Group is currently owned by the UK government.
• The government plans to remove POL from Royal Mail Group and eventually transform it into a mutualised company. The rest of Royal Mail Group is due to be privatised, with 10% of shares allocated to the company’s workforce. These plans are set out within the Postal Services Bill, which has been approved by the House of Commons and is currently being debated within the House of Lords.
• The ‘Colleague Share Plan’ was launched by Royal Mail Group in 2007. Subpostmasters and Royal Mail Group employees were due to receive three allocations of ‘phantom shares’ for 207, 2008 and 2009; and dividend payments in 2008, 2009 and 2010, if performance targets were met. Workers were due to have the opportunity to sell back their shares in 2011, while the company would buy back all shares in 2012.
• Adam Crozier left his post as Chief Executive of Royal Mail Group on 31 March 2010 with a £1.5m bonus payment, £858,000 annual salary and £1.2m pension.
03/03/2011
Subpostmasters warn government must do better following decision to withdraw benefits cheque contract
The National Federation of SubPostmasters (NFSP) has described as “bitterly disappointing” the government’s decision today to remove the contract for processing benefit cheques from the Post Office.
The NFSP warned ministers that if the post office network is to remain at its current 12,000 outlets, they must deliver on their promise to transform post offices into “the front office for government”; and that future tenders for government services must take into account the network’s unique geographical reach, high level of public trust and specialised, trained staffing.
The contract for the benefits cheque service (known as Green Giros or the Exceptions Service), which allows around 350,000 vulnerable citizens to receive pensions and benefit payments by cashing a cheque at their local post office each week, has been at the Post Office since its inception 43 years ago and is worth £20m a year. The government’s decision to award the contract to Paypoint at what the NFSP believes to be a below cost price raises fears among subpostmasters on the future of other benefits payment services such as the Post Office card account (POCA), used by almost four million customers every week.
NFSP General Secretary George Thomson said: “This is a bitterly disappointing decision from the government. Benefits cheque customers rely on their local post office to provide this important service, with subpostmasters and trained Post Office staff providing assistance to hundreds of thousands of vulnerable customers each week. Many of these customers will be unwilling or unable to travel to a Paypoint outlet such as an off-licence or garage forecourt to claim their weekly pension or benefit allowance.”
“Furthermore, we are unconvinced that Paypoint will be able to deliver this important and complex service. The company hasn’t consulted with its agents on their ability or willingness to provide the service. Instead Paypoint continues to force a race to the bottom, making below cost bids for contracts by driving down rates paid to their agents ever further.
“The post office network is the ideal channel for the public to access all forms of local and central government information, verification and payments, due to its trusted presence at the heart of local communities across the UK. The government has recognised this enormous potential by committing to make the network its “front office”. However, we must be clear that if we are to maintain a network of 12,000 Post Office outlets, subpostmasters need significant volumes of work in order to survive, including regular repeat transactions such as benefits payments. Ministers have to deliver new government work to post offices, not more broken promises. As the government plans to remove Post Office Ltd (POL) from Royal Mail Group and make it a stand-alone company, this imperative is even greater.
“If the government is serious about maintaining a national network of post offices, it must ensure that all future tenders for government services take account of the full range of factors alongside cost. The Post Office provides guaranteed availability of cash through its comprehensive infrastructure; unrivalled local access; and trained, trusted staff able to undertake specialist transactions in a safe, secure and professional environment. We would hope and expect that all future government tenders will include a strong focus on these important values.
“I warn the government that neither subpostmasters nor Post Office customers will tolerate any further moves to withdraw vital services from our counters, including the POCA. In 2008, a campaign backed by 4.5 million people succeeded in forcing the government to back down on plans to remove the POCA contract from the Post Office, and we will work again to make sure that the contract continues beyond 2016.”
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For more information contact Chris Gape on 01323 416999
11/02/2011
Second £1m Post Office Fund a “vote of confidence” – NFSP says
The National Federation of SubPostmasters (NFSP) today welcomed a second £1m fund to help safeguard the future of Scotland’s post office network.
The Scottish government’s Post Office Fund follows the success of a similar £1 million scheme last year, which has seen 49 local post offices across Scotland receiving awards of up to £25,000 to diversify their business.
The NFSP said the Fund remained an important step in securing the viability of many struggling post offices across Scotland and provided a vote of confidence in the network’s future, but warned that more needed to be done.
Of the 1,500 post offices in Scotland, the NFSP estimates that around a quarter remain at serious threat of closure due to falling income levels and increased running costs. In December 2010, the all-party House of Commons Scottish Affairs committee warned that the post office network in Scotland was in a “precarious position”.
George Thomson, General Secretary of the NFSP, said: “We are pleased the Scottish government has decided to repeat this important £1m boost to post offices. We view this funding, together with improved small business rates relief provided by the Scottish government, as a real vote of confidence in the work subpostmasters do at the very heart of so many local communities.
“While this ongoing commitment must be welcomed, we are once again calling on the Scottish government and local authorities across the country to develop new initiatives to allow customers to access a wider range of services at their local post office. Ministers, the parliament and councils across Scotland must think "Post Office first” when awarding new contracts and delivering new services.”
Mervyn Jones, NFSP Executive Officer for Scotland and subpostmaster at Sandbed Post Office in Hawick, said: “I know that many of my colleagues across Scotland have already benefited from this important and worthwhile scheme. I welcome the Scottish government’s renewed commitment to supporting post offices and the vital service they provide to their communities.”
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For more information contact Matt Adams at Cobb PR on 01323 416999.
Notes to Editors:
• The Scottish government’s first £1m Challenge Fund was launched on 3 February 2010. The 49 successful applicants to the fund were announced by the Scottish government on 29 October 2010.
• The Welsh assembly government launched a £4.5 million, three year Post Office Diversification Fund in January 2009. The fund is open to all post offices in Wales.
• This followed the Welsh assembly government’s earlier £3.8 million Post Office Development Fund which ran from 2003 to 2006 and was available to post offices in the most isolated and deprived areas in Wales.
• A £2 million fund was operated by Communities Scotland from 2003 to 2006 to develop post offices in deprived urban areas and contribute to the regeneration of those areas.
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