BEIS0001172 - Email from Pat McFadden to Jerome Glass and Mandelson re: Post Office Banking consultation - Draft for ED Clearance

Evidence on official site

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BEIS0001172

From: McFadden
MPST[/O=DTI/OU=DTIHQ/CN=RECIPIENTS/CN=MPSTMCFADDEN]
Sent: Thur 19/11/2009 11:40:38 AM (UTC)
To: Glass Jerome (ShE:
MPSTI.
Ce: Young MPST;
(Finance Crowe Jerry
(Finance Whitehead Mike
(ShEx)E Gibson Will
(ShEx)[} arraclough Sarah
Robling Stephen
PST Central
Subject: RE: Post Office Banking Consultation - Draft for ED Clearance
Attachment: Draft Post Office Consultation - 18-11-09 FINAL.doc

Paul/Jerome
Pat is broadly content with this, but as noted earlier Pat is adamant that he wants no
watering down of the commitment to maintain the current size of the network. His main

change is to para 5.2 where he has moved the latter part of the paragraph. See tracked
changes.

Thanks.

Kate

Kate Hall

Private Secretary to Pat McFadden MP, Minister of State for
Business Innovation and Skills

ess, Innovation and Skills

www.bis.gov.uk

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BEIS0001172

From: Glass Jerome (ShEx)

Sent: 18 November 2009 15:44

To: Mandelson MPST; McFadden MPST

Ce: Young MPST; Davies MPST; Brennan MPST; Upton Joe (COMMS); Boughen Aileen (COMMS); Fraser MPST;

Lovegrove Stephen (ShEx); Middleton Marc (ShEx); Griffiths Oliver (ShEx); SPAD MPST; Sachak Zahir

(Finance); Crowe Jerry (Finance); Whitehead Mike (ShEx); Gibson Will (ShEx); Barraclough Sarah (ShEx);

Robling Stephen (ShEx); MPST Central Admin
Subject: Post Office Banking Consultation - Draft for ED Clearance

Kate, Paul,

Attached is the final draft consultation document, which we would be grateful if the
Secretary of State would approve and therefore if he could sign off the letter
attached to the submission. We would like the letter to be circulated by Cabinet
Office tomorrow so that we can give Departments a chance to respond properly

ahead of our deadline of 25 November. The consultation is due to launch, as you will

know, on 2 December.

Pat, Lord Young, and Lord Davies have approved previous drafts of this document
and the subtance remains the same

Kate - we discussed that there were two points that had been raised in the last 24
hours from DWP and HMT in particular that are unhelpful:

1. DWP: At a meeting with Lord Young yesterday, Helen Goodman said that she
was keen for the Post Office to do more on low-value loans. I explained that the
issue was whether they could do so without new money. DWP have repeated this
point at official level, and I have reiterated our standard line that if Depts want the

Post Office to deliver new services on which they cannot cover their costs, then the

Dept concerned would need to fund these services. Nevertheless, DWP may
respond proposing that the consultation goes further in this regard.

2. HMT: More unhelpfully, HMT have raised concerns about the affordability of our
proposals. Although the proposals do not imply any funding, HMT were nervous
about the inclusion of the phrases: "we will continue to support the Post Office

network beyond 2011" and "we will not support any further programme of closures"

These are commitments that they have already agreed to and which Ministers have

been using for months. We have resisted removing these phrases and have made
clear that if HMT wishes our Ministers to go back on these pledges then it must do

so in writing as part of the write-round. We have agreed to HMT demands to include

a new paragraph (paragraph 5.5 in the text) which stresses the fact that services
must be affordable and self-financing. And we have also agreed to tweak the
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"sustainable" value (para 5.6 fourth bullet) to include a reference to affordability and
offering good value to taxpayers. Grateful if you could check with Pat if he is content
with this handling or would like the HMT additions removed.

Many thanks

Jerome

<< File: POL Consultation submission 18-11-09.doc >> << File: Draft Post
Office Consultation - 18-11-09 FINAL.doc >>

Jerome Glass
Shareholder Executive