14 June 2006
During a Westminster Hall debate on rural post offices, Philip Dunne calls for a full debate on the effects of the withdrawal of the Post Office card account on the viability on many village post offices.

3.28 pm

Mr. Philip Dunne (Ludlow) (Con): I congratulate the hon. Member for Orkney and Shetland (Mr. Carmichael) on securing this excellent debate, and I agree with many of the points made. I want to make three quick points, but before I do so, I want to say that I regret that the Government report from the DWP, which they told the Select Committee on Monday would be available the night before this debate, will not be available until next week. We have not had the benefit of seeing that report before this important debate. That is a good reason to endorse the comments made by my hon. Friend the Member for North Shropshire (Mr. Paterson) that we must have a proper debate with full information.

On the threat to our post offices, I endorse the comments of my hon. Friend the Member for Torridge and West Devon (Mr. Cox). I, too, have undertaken a survey and visited virtually all the post offices in my constituency. Of those, 86 per cent. said that the withdrawal of the Post Office card account would jeopardise their business, and 14 per cent. said that it might jeopardise the future viability of their business. That is the response from all the post offices in my constituency. It is the eighth largest in England and shares a lot of features with those constituencies represented by other hon. Members in the Chamber.

The DWP undertook three pilot studies of alternatives to the POCA. It transpires-not transparently, but as a result of problems raised by my constituents-that one of the pilot areas for the second scheme happens to be in Shropshire. I give the Minister the example of Mrs. Janet Price, who received a number of letters requesting her to cancel her account. She ignored the letters because she did not want to cancel it, and she eventually received a threatening telephone call on a Saturday afternoon from a member of the agency's staff. When I first heard about that, I found it hard to believe, but it clearly was the case. I have had a letter of apology from the chief executive of the Pension Service, and a letter from the Under-Secretary of State for Work and Pensions, the hon. Member for Warwick and Leamington (Mr. Plaskitt).

I raise this issue because I have been accused, as have other hon. Members, of employing scare tactics to claim that post offices are under threat when they are not. That is absolutely not the case. In the letter, which I received last month, the Under-Secretary said:

"Undue pessimism and scare stories, suggesting that thousands of post offices will close and that customers will no longer be able to collect their benefit or pension at the post office, are not totally misleading, but, by spreading unfounded fears, are not in Post Office Ltd's interests."

We have just heard that 2,630 post offices closed in the two years to March 2005. Where is the evidence-base for claims like that? These are not scare stories. The Minister has heard evidence from hon. Members on both sides of the Chamber, and I hope that he will take cognisance of those genuine concerns in his response. I hope also that we will be allowed to have a proper debate on the Floor of the House.

3.31 pm

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