BEIS0000137 - DTI Briefing for meeting with Welsh Office re Post Office Review

Evidence on official site

BEIS0000137
BEIS0000137

BENEFIT PAYMENT AND POST OFFICE AUTOMATION
PROGRAMME/POST OFFICE NETWORK

Lines to Take (If Raised)

© Understand you are in dialogue with the Post Office and DTI Ministers with regard
to the project.

¢ Fully understand the importance to Post Office Counters of acquiring a modern
automated on-line computer platform.

© Understand that current plans provide for all post offices to be automated by the
end of 2000.

© We, of course, have particular concerns that the rural network is viable given the
number of rural offices in Wales. We fully recognise the importance of post
offices to rural communities,

¢ Therefore very much hope that the project can be implemented successfully. Not
surprising that the project, which is a major PFI project, has been reviewed by
departments given its size and importance and the delays which have occurred.

¢ The Government remains committed to maintenance of a nationwide network of

post offices.
BEIS0000137

BEIS0000137

Background
Post Office review

The second phase of the Post Office Review (conducted by an inter-departmental
group) will make recommendations to Ministers after the Summer. Ministers aim to
announce proposals in the Autumn. This follows extensive consultations on options
for granting the Post Office greater commercial freedom during the first phase of the
review after Mr McCartney’s announcement in May 1997. The Crown post office
conversion programme is suspended pending the outcome of the review. The terms of
reference (attached) take into account the report of the Trade and Industry Select
Committee (published in January 1998) - the Government response to which was
published on 14 April.

The CWU have been well involved with the review - having met officials, made
presentations to the working groups which are taking forward the review, met the
consultants advising the review team, and met DTI ministers.

The CWU are also lobbying politically on the review - pressing especially that there
should be no sale of shares in the Post Office, and that there should be no further
conversions of Crown post offices (although they have no accepted Mr McCartney’s
advice to discuss with Post Office management a strategy for handling some
conversions. To our knowledge they have met the Gordon Brown and Alistair
Darling (when Chief Secretary to the Treasury), Donald Dewar (Secretary of State for
Scotland), Geoffrey Norris (Special Adviser at Number 10), as well as having a
political discussion with Mrs Beckett and Ian McCartney. 2