KEETCH BACKS POST OFFICE BID TO KEEP CARD ACCOUNT SCHEME

10.28.00pm BST (GMT +0100) Thu 10th Jul 2008

Paul Keetch MP for Hereford is keen for the contract for the new card account to be awarded to the Post Office as they have the network to allow people from all over the country to access a card account of this kind. Other competitors have a good coverage in urban areas but not in rural areas.

Commenting the MP said,

"It is essential that people are able to access their savings and benefits over the counter at their local Post Office. Some 4.3 million people throughout the country use the card accounts, including many pensioners. Without access through an organisation who they trust, like the Post Office, some may be denied access to their own money.

There is huge frustration that the Government simply do not recognise the social value of the Post Office. My Liberal Democrats colleagues and I have consistently and strenuously opposed the Government's plan to close 2,500 branches across the UK this year - on top of the 4,000 they have already closed, and the 3,500 post offices that were closed under the Conservatives. So, while we respect the need to get a competitive deal for the taxpayer by putting the card account out to tender, we believe that protecting the long term viability of the Post Office and avoiding yet more closures should be the Government's priority when they make a decision on the Post Office card account".

The card account contract is worth around £1 billion to post offices between 2003 and 2010. Without that income stream, many thousands of branches are likely to be unable to survive. The worst hit will be post offices in rural areas and in poorer urban areas. Quite simply, the people who most need the service of a post office will be most affected

Commenting further Paul Keetch said,

"Instead of pulling the rug from under people's feet, the Government should be building on the success of the Post Office card account. We need to find additional services to be provided through post offices, not cut the services that are already provided".