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From: Minister HOLLINRAKE (DBT)[/O=EXCHANGELABS/OU=EXCHANGE
ADMINISTRATIVE GROUP
(FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=3F 131AB4A1E443368F392D196C
626FAE-5B2AC667-8A]
Sent: Thur 28/03/2024 10:28:52 AM (UTC)
To: Minister HOLLINRAKE (DBT! GRO
Subject: Postmaster NEDs
Kevin: think you saw SoS yesterday?
Elliot: was enlightening. I think she was keen to get a steer on how things were going.
Know she is speaking at the 10 at 10.
Saf: good to have Kemi there, the board appreciated it. Think people realised we are all
pushing in the same direction. Got to try to do more of the right stuff.
Kevin: know we need to sort some issues from the past and of course the present, but it
has a bright future. Post Office wouldn't be what it was without the postmaster. People
talking about the reputation of post office, btu my feeling is postmasters are more valued
than ever. Keen to hear from your perspective how it is.
Saf: Will be situations in branches where the staff will be earning more than the
postmaster. Due to minimum wage. the budget is -3 for postmasters, central costs 3.5%
up. The system is broken and it is not postmaster centric. There are many reasons for
that, one of them is central costs. Investment needed in order to cut them. Also other
areas where postmasters should be treated better, concern raised yesterday was are
we producing a horizon replacement or something 2030. We'd like licence to be more
commercial. The 11500, understand no one is looking at that before the election, but
that should be looked at.
Kevin: listen we are on the same page on central costs. We absolutely want to make
sure those costs can be taken out fo the business. don't want revenue to get stuck in
the middle. In terms of remuneration - it's a 3.6% increase?
Lorna: in cash terms.
Elliot: the minimum wage going up is becoming a problem. The organisation is filled with
good people but has lost strategic direction. Needs strategic review of number of
branches. I'd like to look at them do anew model, how much does the postmaster need,
the costs, and what's left runs the business. Proper review of what our purpose is and
what we need to deliver it properly. Postmasters definitely not central to the budget.
2" part of this is where is the post office, essential we get a view beyond % year cycle.
What is the intent? Are we looking at a business with a great back office system and, is
it mutualised is it profit share etc. I think a co-op structure is good. Maybe separate the
historical stuff with the trading business. The work you've done for postmasters is really
appreciated. Once the historical stuff is done, then we've got the basis of a business we
can actually build upon.
Kevin: agree with what you've said, the top and bottom of it. I think your way of looking
at it is good. What is the amount the average postmaster needs to earn, then after that
work from there. Right to say politically right now we can't change that number (11500).
We need to be realistic about the network going forward. Agree with points on revenue
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opportunities, want to see more money coming out the banks into your coffers. In terms
of big picture, leadership is really important. Apologies for the fallout from the situation
from you two. I think you've met a couple of our candidates for char, and that we've got
good options. absolutely in terms of the governance, how they structure it going forward,
big fan of mutuals. Keen to see how we'd bring someone in to take a look at it. What is
the best structure? What are some of the pitfalls? NBIT obviously. Therer are things that
get int he way but aren't immovable obstacles. All of these things are ongoing.
Elliot: It's the lack of a roadmap. We live in a neverland between sustainable business
and social purpose. We can't do that because of the cost constraints. on the chair,
we've met two of the candidates. both quality applicants, we have a standout choice. If
that person were to come into the business i think it would be great. Think Nick would
embrace it too.
Kevin: Who's your stand out?
Elliot: Nigel Railton
Kevin: how about you Saf?
Saf: Nigel by far was the standout candidate. Came across very confident. Whatever he
is asking for let's go for it. We do need to look further forward. Once inquiry finished
there is a solid business there.
Kevin: one the same page. That's our road to the roadmap, we can't do this for the post
Office it has to be done by the post office. But appointing someone who knows how to
get from A-B. it won't just be this stasis. We want to give a feeling to the network we are
going places. We want everyone to buy into that.
Elliot: Gives us a confident for certain. one thing easy to forget, NBIT should be an
enabler, enable us to be more efficient. there's automation which is lacking as well,
which would be an efficiency drive. Self service etc.
Saf: the cash counters ar only in limited branches, not network wide.
Kevin: what other automation?
Elliot: self serve kiosks. Royal mail opening lockers, 1500. Collect+ is 5000 sights.
There's 8500 sites there. Need to automate our stores to help with the queues.
Kevin: Anything else on your mind.
Elliot: there's a decision coming to your on the make-up of the NEDs on the board.
PAUSE
Elliot: my concern is that getting two new people up to speed is a bad idea given shape
of the board. Want to leave behind me a better place than when I joined.
Saf: with NBIT in the air, the inquiry, It is very difficult to get postmasters tot he level that
they need to be at. not enough of them have the experience. Having two new individuals
come in loses the oversight knowledge base.
Kevin: we will reflect on what you've said.
Lorna: have you got other suggestions about making the business more postmaster
centric.
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Elliot: there is a role for postmasters in a more executive role. Operating shareholers
who work along the executive, it's more of a talking shop than a doing shop. We've been
bought in sometimes and have asked for near executive level feedback. Should be a
role for stewarding within the executive.
Saf: when it came to the investigations the new investigations unit that you should get
postmasters involved in this team. So they get the tone and the culture right, there was
no interest whatsoever unfortunately. Anything that impacts postmasters should have
postmaster insight.
Elliot: that's why mutualisation.coop mindset is so important.
Kevin: think there needs to be a proper feedback loop. Reasons given. Keen to keep
dialogue going if you need us to know anything.
ENDS
Jamie Lucas I Deputy Head of Office and Private Secretary to Kevin Hollinrake MP, Minister for
Enterprise, Markets and Small BusinessI
Department for Business and Trade I Old Admiralty Building I London SW1A 2DY I