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" CIRCNLATION: NATIONAL EXECUTIVE COUNCIL A3 POPZ
CB/CD PO PZ
9 September 1999
CIRCULATION: __ NATIONAL EXECUTIVE COUNCIL
General Secretary: COUN BAKER
‘Assistant General Secretaries
Dear Executive Officer Kevos Davis + Pain HEASHAN,
GOVERNMENT REVIEW
I am sure you will be interested in the attached letters from Stephen Byers.
The first, dated the 2 September, is a letter which he has sent at our request for 1
publication in the SubPostmaster journal. You will see that the Secretary of State is i
merely repeating previous comments and is sticking firmly to the view that the I
decisions on Horizon and the Benefits Agency will allow the Horizon platform to }
develop and enable those who wish to continue to cash their benefits at post offices.
Heavy emphasis is placed on the value of the Horizon Working Group. Although
this letter is merely stating what we already know it will be useful in demonstrating to
the members through the SubPostmaster journa! that we are in contact with the
Secretary of State and that he is writing to them through the Federation.
The letter dated the 3 September is a personal one to me and I can advise you that I
have now met with the new Minister, Alan Johnson, and the meeting was extremely
valuable. Alan Johnson is clearly well aware of the issues surrounding the post I
office network and is conscious of the poltical difficulties which the Federation could I
generate if things did not work out for us. Alan and myself have agreed to have I
regular head to head meetings once every two months as well as meeting together
formally in the Horizon Working Group. We also intend to take up the offer of a
meeting with the Secretary of State in October and will be in touch with his office
shortly to arrange such a meeting.
We will keep you advised of developments.
COLIN BAKER
General Secretary
Enc:
A helping hand for SubPostmasters...everywhere!
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FAXED Penson
The Rt Hon Stephen Byers MP Lar Epps, td
Secretary of State for Trade and Industry Elf }
; 8 SEP p 1999 4
Colin Baker Esq : of State
General Secretary = Department of
National Federation of Subpostmasters” Trade and Industry
Evelyn House 1 Victoria Street
22 Windlesham Gardens London SW1H OBT
SHOREHAM BY SEA Direct
West Sussex .
BN43 SAZ
e-mail
3 September 1999
Q P)
Thank you for your letters of 26 and 30 July conveying the concerns of your
members about the future of the post office network and covering the
Federation’s response to the Government’s White Paper on Post Office Reform.
[attach a letter which you may wish to publish in your monthly journal on how
the Government sees the future of the post office network.
T understand that you are due to meet with Alan Johnson, the new Minister with
particular responsibility for Post Office issues on 8 September, and I hope this
will prove a valuable discussion. After you have met Alan I would be happy to
ieet you in October to discuss issues of mutual interest.
Tam pleased that the work of the Horizon Working Group is progressing well
and am grateful for your contribution to its work. I am sure that you will be in
touch with developments in Government thinking on the network as a result of
STEPHE io -
dts
Department of Trade and Industry
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. FAXED FOR PUBLICATION
The Rt Hon Stephen Byers MP
Sectetary of State for Trade and Industry
Secretary of State
Department of
Colin Baker Esq Trade and Industry
General Secretary
National Federation of Subpostmasters
Evelyn House
22 Windlesham Gardens
SHOREHAM BY SEA
West Sussex
BN43 5AZ
1 Victoria Street
London SW1H OET
‘ 2 September 1999
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.
sW8156
dti
Department of Trade and Industry
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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 rural 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.
Iam grateful to you for your contribution to the Working Group established to
oversee progress with the revised Horizon contract and to explore further the
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 piayers 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, ta nrovide this. channel...
t~, GRO
awsis6
Department of Trade snd Industry