During Parliamentary Questions on Monday Mr Dunne exposed the "disappointment" expressed by Mr Alan Cook, Managing Director of Post Office Ltd about the decision of the Department of Work & Pensions not to renew the contract for the Post Office Card Account when it expires in 2010.
Mr Cook wrote to Mr Dunne and other MPs to set out the seriousness of this decision for the Post Office. Mr Dunne quoted Mr Cook's letter that the Post Office makes an annual loss of £2 million after deriving revenue of £200 million from the use of the card.
Mr Dunne has surveyed all 48 post offices in his Ludlow constituency. Of the third who have replied so far, each one indicated that withdrawal of this card would or may threaten the viability of their business. Mr Dunne commented: "This is serious. Two thirds of the post offices in my constituency rely for more than 50% of their business on card account holders. If the card is withdrawn there is a very real prospect that these post offices may close, if this income shortfall is not made good. This would have the worst affect on the most vulnerable in our local communities, pensioners and those on benefits.
What can the Government be thinking? This is yet more evidence of the lack of understanding of the way rural communities work."
