Post Office network transformation : third report of session 2012-13, report, together with formal minutes, oral and written evidence

In this report the Business, Innovation and Skills Committee outlines its concerns with regards to the Government's proposals for change to the ownership and administration of the Post Office network.

The new role of post offices as front offices for Government services will be vital to their ongoing financial viability.

The Government must set out the services that are to be delivered through this method whilst Post Office Ltd must demonstrate a clear marketing strategy to ensure post offices are promoted as the preferred outlet for such services.

The new method of remuneration for 'Local' post offices may not be viable for subpostmasters, increasing the likelihood that large supermarkets will take over the Post Office mantle.

There is little detail on the programme for change with regards to mutualisation and particularly on how any such mutualisation would be affected should the majority of 'Locals' be owned by a small number of major companies.

The Committee recommends that the Government outline how such a situation would affect the ability of the Post Office to become a mutual organisation. On the question of a Post Office subsidy, the Committee supports the long-term objective for post offices to become financially self-sufficient.

Indirect financial support, largely in the form of the Front Office Government services will be key to achieving this ambition, but some smaller offices may never achieve financial independence and they should be supported as they often deliver some of the most vital services to rural or deprived areas.