Who will be counting the cost of Post Office counter closures?

May 14 2008 by Matt Johnson, Liverpool Daily Post

BEEN to a Post Office recently? How long were you there? Try as I do, I still find it hard to understand how such a valuable part of Royal Mail's business is in such a mess.

The last round of Post Office closure plans sparked one of those nervous periods for MPs at Westminster, when genuinely local constituency issues topped the agenda.

Sit on the green leather benches, raise your hand in support of a closure plan and see what sort of welcome you get back home in the constituency on a Friday evening.

With little else to do for the 20-odd minutes I was waiting in the queue in the Post Office at the foot of St John's Beacon recently, I tried to count the number of other counters which have closed in the city centre recently.

Try it. It's an interesting exercise.

These closures – and this week there has been a threat issued to a further 3,000 Post Office counters, – are not confined to our city centres, of course. Indeed, the sharp end of the axe often lands in rural communities.

But how has the situation been allowed to deteriorated to such an extent that these services – so crucial to so many in our communities – are being swept away?

If you think about how competitive the conventional retail sector is, especially in terms of a branded foothold or presence on every High Street, it's even more bizarre that Post Office counters – often with a presence in every village, never mind every High Street – should be closed down.

Firms have been known to launch takeover bids with the aim of acquiring a valuable network of outlets. The Carphone Warehouse deal is the latest example that comes to mind. With its new US-based partner, it foresees growth through a stronger presence in the consumer electronics market.

The latest threat identified by the National Federation of Sub- Postmasters will arise if the gov- ernment removes their right to handle benefit and pension payments. According to the sub- postmasters, 22% of the British population eligible for state pensions or benefits, collect them from the Post Office. That converts to some 4m customers a week relying on the service offered at their local PO.

The overheads that come with running such a big network are undoubtedly high, but starting with a customer base as strong as 4m a week must surely be an advantage others on the High Street would eye with envy.

It would be a brave, or foolish, government that gave 4m people a reason to question who they should vote for.

* MATT JOHNSON is chairman of Mando Group