BEIS0000325
BEIS0000325
ANNEX B
Mr Colin Baker
General Secretary
National Federation of Subpostmasters
Evelyn House
22 Windlesham Gardens
SHOREHAM BY SEA
West Sussex
BN43 5AZ
Thank you for your letter of 26 July about the future of the post office network and
the Federation’s response to the Government’s White Paper on Post Office Reform.
I should first like to assure your members that the Government fully recognises the
importance of the post office network to the communities it serves and we remain
committed to the maintenance of a nationwide network of post offices. Sub post
offices represent a valuable partnership between the public and private sectors.
The changes which I announced on 24 May to the Horizon project should put
computerisation of the post office network back on track. The original Horizon
project initiated in 1996 by the previous Government had suffered such delays and
set-backs that it no longer represented, in our view, the best way forward. The
restructured Horizon project will equip every post office throughout the network
with a modern, on-line computer platform by 2001. Automation of the post office
network is vital to the future of the network to enable the Post Office to conduct its
business in a modern way and help it to retain existing and attract new clients.
DATEMPITOZHZNFSP.DOC es
BEIS0000325
BEIS0000325
We took our decision against a background of the clear trend in recent years for
increasing numbers of benefit recipients to opt voluntarily to have their benefits paid
into bank or building society accounts by automated credit transfer (ACT).
Nevertheless, there will be no change to the existing paper-based methods of paying
benefits until 2003 after which the Benefits Agency will move progressively over a
two year period to the payment of all benefits into bank accounts through the existing
ACT system, This timescale is designed to allow POCL to build on the Horizon
platform to develop further its relationship with the banking industry, and so ensure
that all those who wish to do so will continue to be able to collect their benefits in
cash at post offices both before and after the changeover. Also, bank customers
generally will benefit from a wider range of convenient access points, particularly in
tural areas.
I remain convinced that the post office network has an important future role to play
in implementing the Modernising Government agenda, using the new technology.
The post office network is in a good position to continue to provide an interface
between Government and communities. When automation is achieved, a wide range
of new opportunities should be open to the network.
I am grateful to you for your contribution to the Working Group established to
oversee progress with the revised Horizon contract and to explore further the
DATEMPATOZHZNFSP.DOC 78
BEIS0000325
BEIS0000325
commercial potential of the automated network. Your members as both business
proprietors and providers of post office services are ideally placed to contribute ideas
and suggestions on new products and ways of working which are vital to the future
success of the network. It is vital that subpostmasters as key players in the post
office network have a direct channel of communication with Government to help
shape the future of the post office network. A key role of the Working Group is to
provide this channel.