MP says renewal of Post Office contract is great news
Central Ayrshire MP Brian Donohoe has wholeheartedly welcomed the decision by Work and Pensions Secretary James Purnell to renew the Post Offices Card Account contract, which he describes as very good news for local post offices.
Mr Donohoe said I am delighted to say that the Labour Government has decided to award the new contract for the Post Office Card Account to the Post Office. This announcement is good news for our local Post Offices as the card account is an important source of income and brings customers through the doors of post offices across the country.
I know people were concerned about this issue and I met recently with James Purnell to raise it directly with him. That is why I welcome this news as will the people who run our post offices. The National Federation of Sub Post Masters had said that, without POCA 3,000 Post Offices would close across the country. This decision will help to protect the Post Offices that play such an important role in our community. Eight thousand, three hundred people have Card Accounts in Central Ayrshire, which is more than average for the country as a whole, so the impact of todays news on this constituency is enormous.
I think this decision is particularly reassuring to people who will feel they need the Post Office Card Account even more during the period of financial uncertainty that began with the collapse of the American banks. The Post office is a trusted brand and is seen as a safe, secure and reliable provider of services in these turbulent times.
Labour is offering a subsidy of £1.7billion to help maintain a national post office network. We have also introduced new access criteria to ensure we have modern Post Office branches in the right places to serve people. Along with the good news on POCA this represents real help for these local businesses at what is a tough time.