POs ‘need to shut over losses’

A government minister today maintained that post office closures - including 28 proposed in Shropshire - were necessary because the network was losing £500,000 every day.

Business Minister Pat McFadden said the speed and scale of technological development in the UK were centrally connected to the changes facing the post office. He was speaking at the annual conference of the National Federation of Subpostmasters.

Mr McFadden was due to say that all companies and service providers had to adapt to change in an age when people could pay bills, compare prices and bank online.

Mr McFadden said the Government recognised the social value of the post office network which was why it was providing a £1.7bn funding package.

However, even with this level of subsidy closures were still necessary because of the £500,000-a-day losses, said Mr Fadden.

In Shropshire the news that 28 rural post offices were proposed for closure came in January, with half of them falling in the south of the the county.

Most post offices have objected to the move, with a handful saying they understand the reasons behind the move.

On Friday, south Shropshire MP, Philip Dunne, held a series of meeting with post office officials for residents to make their views known on proposals

The first in a series of crunch meetings was held at St Peter’s Hall, Henley Road, Ludlow, yesterday.

Other meetings chaired by Mr Dunne were held at Craven Arms Community Centre, Lydbury North Village Hall, Worthen Village Hall and Worfield Recreation Hall.

The government has come under heavy criticism for sanctioning 2,500 post office closures and the federation warned over the weekend that another 3,000 branches could close if ministers did not renew a contract for post offices to handle State pensions and benefit payments.

The federation said one-in-four branches which will be left after the current closure programme is completed at the end of the year could shut if the Post Office loses the contract to run the new card account.

The current card account, used by about four million people every week to access pensions and benefits will be replaced next year.

By Catherine Roche