Post Office must keep card account — Meacher

AN Oldham MP is urging the Government to award a key benefits contract to the Post Office to prevent further branch closures across the borough.

Michael Meacher, MP for Oldham West, insists that allowing the Post Office to operate the successor to the Post Office Card Account is essential to the viability of the network.

The POCA is used by four million people nationally as a way of receiving benefits and pensions. It cannot be used elsewhere and earns the Post Office £200 million a year.

A decision on which company will operate the successor product to the card account from 2010 is expected in the next few weeks.

Mr Meacher said: “This is a real opportunity for the Post Office to compete. It would be of great value and a good way of stopping more closures. I can see no reason why the Government would not champion this unless it wants to run down the post office sector, which I do not think it does.

“This is a triple whammy. Everything is in favour of this and the Government should make it priority and push ahead with it.”

Billy Hayes, head of the Communication Workers’ Union, has warned the Government that 3,000 post offices could shut if the contract is lost.

Peter Luff, the Conservative chairman of the Commons Select Committee on Business and Enterprise, has said the loss of the contract would be a catastrophe for the entire Post Office network.

He added: “It would be quite appalling. The entire network would be in near meltdown.”

A Parliamentary early day motion signed by 250 MPs, including Mr Meacher, calls for action. Ministers have said the decision must be taken on commercial grounds.

A Department for Business spokeswoman said: “European Union rules required the Department for Work and Pensions to tender for the successor to the Post Office Card Account.

“This process is under way and it would be inappropriate for us to speculate on the outcome without being seen to prejudice the procurement process. DWP expects to announce the successful bidder later this year.

“However, whatever the outcome, the Government remains strongly committed to a sustainable and nationwide post office network on the back of the £1.7 billion funding package and access criteria that were announced last year.”