Postal Services

Oral Answers to Questions — Scotland – in the House of Commons at 11:30 am on 4 June 2008.

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Photo of David Cairns David Cairns Minister of State, Scotland Office

My right hon. Friend and I have regular discussions with ministerial colleagues on a range of issues.

Photo of Alistair Carmichael Alistair Carmichael Shadow Secretary of State for Northern Ireland, Shadow Secretary of State for Scotland, Liberal Democrat Spokesperson (Scotland), Liberal Democrat Spokesperson (Northern Ireland)

The interim report of the Hooper review concluded that the only people who had benefited from the liberalisation of the letter post market were a handful of banks and credit card companies and that it had also led to a real threat to the universal service obligation. Was that what the Government intended when they undertook this enterprise? What are the Government doing now to ensure that the threats to the universal service are not realised, because once it is lost we will never get it back?

Photo of David Cairns David Cairns Minister of State, Scotland Office

We remain committed to the universal service obligation, which is why we are investing hundreds of millions of pounds in a sustainable post office network. I know that some closures of post office branches in the hon. Gentleman's constituency have recently been announced, with six to close and 66 to remain open. If we were not investing to the degree that we are in sustaining the post office network and the universal service obligation, those figures would most likely be reversed. We are committed to a universal service and a vibrant post office network, and that is why we are putting the money in.

Photo of Malcolm Bruce Malcolm Bruce Chair, International Development Committee, Chair, International Development Committee

With the closure of Montgarrie post office, and the announcement of the closure of— [ Interruption. ]

Photo of Michael Martin Michael Martin Chair, Speaker's Committee on the Electoral Commission, Speaker of the House of Commons, Chair, Speaker's Committee on the Electoral Commission

Order. The SNP group must behave themselves in the Chamber. It is bad manners: when an hon. Member is putting the case for his constituency, he should be heard.

Photo of Malcolm Bruce Malcolm Bruce Chair, International Development Committee, Chair, International Development Committee

Thank you, Mr. Speaker. With Montgarrie post office closed and Rhynie, Lumsden, Kennethmont and Collieston suffering reduced hours, does the Minister acknowledge that those communities will lose both income and services? More to the point, with uncertainty over the future of the Post Office card account, no post offices in my constituency or any other can feel confident about the future, even if they do not face closure now.

Photo of David Cairns David Cairns Minister of State, Scotland Office

The right hon. Gentleman raises an important point. There have been several closures but, as he recognises, the future is now more certain for many post offices because we are providing help and support. As I said to Sir Robert Smith, discussions on a replacement for the Post Office card account are under way and we are committed to its continuation. The right hon. Gentleman knows that people's shopping habits have changed, and they are now accessing services in different ways. The Post Office has to adapt to that new reality, but we are not walking away from our commitment. Indeed, we are investing massively to sustain the network.