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STRICTLY CONFIDENTIAL
FOR USE OF NATIONAL EXECUTIVE COUNCIL OFFICERS ONLY
NATIONAL FEDERATION OF SUB-POSTMASTERS
REPORT OF THE
NATIONAL EXECUTIVE COUNCIL
MEETING
held on
8th & 9th JANUARY 2001
at
THE GRIMSTOCK COUNTRY HOUSE HOTEL
WARWICKSHIRE
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Report of a Meeting of the
National Executive Council
Held on 8" and 9" January 2001
at The Grimstock Country House Hotel, Warwickshire
Present Mr N Bradbrook - National President and Chairman
Mr A R Butlin Mr D F Marshall
Mr M Challinor Mr D Milner
Mr M Darvill Mr H Morgan-Jones.
Mr P Finlay Mr J Mortis
Mr J Jannetta Mr J Peberdy
Mrs P M Jenkins Mrs S Reeves
Mr C Jones Mr P Walsh
Mrs J Kendall Mr J Willshaw
Mr I McLean
In Attendance: Mr C Baker General Secretary
Mr K Davis Assistant General Secretary
Mrs K Davis Assistant General Secretary
THE NATIONAL PRESIDENT greeted everyone present and welcomed them
to the first Executive Council meeting of the year. He particularly offered the
Council's heartfelt congratulations and best wishes to MR. FINLAY who had
recently been awarded the MBE in the Queen's Honours List for Services to
the National Federation of Subpostmasters and the Local Community. THE
NATIONAL PRESIDENT said the Council was pleased and proud to have him
among us. MR. FINLAY responded with thanks, commenting that he was
surprised and honoured to receive the award but felt there were others who
had contributed much more than himself who had not been honoured in the
same way.
Apologies were received from MALCOLM ROGER who was attending _
Horizon training and from MERVYN JONES ©
THE NATIONAL PRESIDENT went on to remind the Executive Council that
as this was a two day meeting they would have to push on as the Annual
Report had to be amended and corrected where necessary but in order to
make progress quicker, they would go through on a page by page basis rather
than a paragraph by paragraph basis. They would go through the Annual
Report after A5, Publicity and Development Report and then A4.
EXECUTIVE COUNCIL MEETING - JANUARY 2001 PAGE 1
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AM REPORTS AND RESOLUTIONS OF PREVIOUS MEETINGS
REPORIS AND KESUEN EEE
Executive Council Meeting held on 30th, 3ist October 2000
Special Executive Council Meeting held on 24th November 2000
* The Minutes of these meetings had been circulated and were
approved.
Irrelevant
1. GOVERNMENT AFFAIRS PO PZ
MR PEBERDY said that both of these papers were asking for the Federation's (
reponse and excellent papers had been written by our Research Officer
Annabel Barnett.
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1. (c) General Secretaries Meeting PO PZ
THE GENERAL SECRETARY reported that the Post Office was in dire straits,
that Industrial Action was making it worse, that there were threats of the
private carrier in so far that the Regulator at Postcomm was proposing to
licence local competitors allowing local operators to deliver mail at below
uniform tariff. They were proposing a price freeze for two years, they were I
requiring a service performance to reach 95.2% in two years and they were i
proposing to open up the network of post offices to competitors but with the j
Regulator setting the prices. THE GENERAL SECRETARY went on to say
that the network was potentially under threat, that he could see good and bad
but mostly there was not very much good in it. The Regulator was in favour of
liberalising the Counters Network which was a real problem with real
difficulties
THE GENERAL SECRETARY said that there would be another meeting. He
reported that there would be an announcement the following day that the Post
Office would be changing its name, the reason being that the Post Office
wanted to be a global supplier and that the name, the Post Office did not
mean anything, he said that they were looking for a name that was completely
different, that the network would be known as the Post Office and Post Office
would mean post offices.
There followed a general discussion on what THE GENERAL SECRETARY : I
had reported.
THE GENERAL SECRETARY concluded by saying that it was very important
that the Federation replied to documents. He said that we were no longer in
control of our own industry, decisions might be made but there were external
influences. He reiterated that the Regulator was very upset with what was
going on.
Irrelevant I
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2. (e) Government General Practitioner PO PZ 01
The GENERAL SECRETARY reported that the announcement had been i
made and that the pilot would commence in Leicestershire. A presentation
had been made to THE GENERAL SECRETARY at Gavrelle House. He
reported that the payment for this service needed to be worked out.
MR MARSHALL asked THE GENERAL SECRETARY if he had any idea of
the list of products that would be involved, that the PIU Report had said that I
the Federation should be involved.
MR PEBERDY reported that Dave Waltho was only just pulling his team
together, that the April date was not very feasible, he had a fairly turned on IT
team. '
MR. WILSHAW asked whether Government General Practitioner and
Government Gateway was the same.
MR. PEBERDY replied that the name Government Gateway was the name I
the Post Office had given to a brand, they were the same, the pilot would roll {
out in July 2001 with National Roll Out in 2002, thereby being a year’s pilot
with the Government training subpostmasters. A sum of £15 million of
Government money had been allocated for the first pilot and £70 million a
year after that. He added that Dave Waltho would need to come and speak to
the Executive Council when the ideas have been formulated.
THE GENERAL SECRETARY reported that he was waiting for a 44 page fax
from the Post Office on the Subpostmasters Conferences. MR FINLAY
reported that there were problems in the Leeds/Bradford area with a lot of
subpostmasters having not been invited and others who had been invited to
the wrong event. THE GENERAL SECRETARY asked whether this had been i
reported to the territory. I
MR PEBERDY reported that the first Board Meeting of the Network
Reinvention Board would take place on Friday January 12th 2001 which
would be part of the future of subpostmasters. There would have to be a
reduction in the network of post offices, for post offices that go there would be
compensation. The Federation must be joined up as the network is
threatened.
MR JANNETTA asked whether it would be a repetition of the work done last
year, would there be a viable plan. }
MR PEBERDY replied that he did not know but that he might by Friday, that
there would be monthly meetings with different representatives.
MR DARVILL reported that he had no idea of what the Post Office were
planning, that there were offices with problems, that the Post Office were
frightened and were not closing those offices which were not viable.
EXECUTIVE COUNCIL MEETING - JANUARY 2001 PAGE5
THE GENERAL SECRETARY reported that the Post Office were looking at
the network now, that they have Government instalments, they have claimed
that they have a model and money, that it was going to be different , that they
were not yet prepared to close post offices. THE GENERAL SECRETARY
stated that this was their one chance and it had to be done correctly. The
difference this time was that there was money.
MR WALSH stated that nothing could be done until access criteria was
decided.
MR PEBERDY replied that it was not a closure programme but reinvention of
the network, it was business as usual.
THE GENERAL SECRETARY then gave a presentation on how the Network
Reinvention hierarchy would operate. The Group Managing Directors would
be Stuart Sweetman and Sue Huggins who would liase with Government
Departments in respect of the work carried out by the Post Office. The three
groups to deliver the PIU Report would be Government General Practitioner,
Network Banking and PON, this would be the thin layer driven by PON to
deliver the PIU under Dave Miller, Managing Director. PON would be
responsible for Network Reinvention and e commerce. Phil Smith would be
responsible for the Social Network which would have Post Office money. On
the commercial side, there would be private capital, there was £180 million in
suppliers. He reported that the multiples already had bigger and brighter post
offices, that the model and people were not there yet.
MRS REEVES said that she thought that this would be a big chunk for one
person, i.e. MR. PEBERDY who replied that it had been made clear that it
was to be one person, after the first meeting on Friday January 12th he would
report to THE GENERAL SECRETARY.
THE GENERAL SECRETARY said that it would involve the Federation,
Executive Officers, etc. even down to individual level. The first thing that was
going to happen was to look at urban deprived offices in the Manchester area,
post offices had got to be viable and vibrant, bigger and brighter.
THE GENERAL SECRETARY then went on to tell the Executive Council
about the information that was needed for the MORI research and that he
would need assistance from appropriate EC Officers. There were to be three
areas, I urban — North East including Sedgefield, I mixed in Scotland including
Glasgow and I rural in the South West and four post offices from each region
would be targeted, there would be 20 interviews a day, information about the
numbers and flows on benefits/pension recipients at each post office would be
needed and permission would be needed from subpostmasters.
MR JANNETTA commented that only Sedgefield was politically targeted to
which THE GENERAL SECRETARY replied that it was not a coincidence that
it was the Prime Minister's constituency.
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Irrelevant
5. COUNTER AUTOMATION PC NW 06 01
(a) — Horizon Implementation PC NW 06 01
MR PEBERDY reported that he thought that Don Grey did his best to sort out
problems with Horizon. MRS KENDALL enquired whether we knew about
any subpostmasters who had been affected by an installation during the week
commencing 11th December 2000 to which THE GENERAL SECRETARY
replied that the Federation had not heard anything.
(b) Operating Out of Hours Facility PC NW 06 01
(c) Quantum Transaction on Horizon PC NW 06 01
MR PEBERDY reported that as yet there had been no feed back and he
asked the Executive Council for their views. MRS REEVES raised the matter
of Quantum on the private side of the business, she asked when would
deferred APT machines going to be withdrawn. MR JANNETTA reported that
he had the same problem and wanted to get additional Horizon equipment for
bigger business on the private side. MR MORRIS also said that extra Horizon
equipment would be needed for offices that had been under sourced. MR
PEBERDY said that they would take the document back and re-negotiate it.
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THE GENERAL SECRETARY would find out about redundant APT machines.
(d) Travelling to Training Venues PC NW 06 01
MR MORGAN JONES reported seven offices in Liverpool which were
suffering extreme difficulties in getting to Horizon Training Venues to which
THE GENERAL SECRETARY responded that this was being looked into, also
cases in Scotland, where the RNM was going to take subpostmasters to their
training.
(e) Eye Sight Tests PC NW 06 01
MR WILLSHAW reported that there was new Health and Safety for Mailwork
Offices and that the cost should be re paid. THE GENERAL SECRETARY
reported on Conclusion 2 on the Health and Safety Regulations — Eye Tests
and VDUs which states that the Robens Centre report concludes that counter
staff are display screen equipment users. There was a difference between
the Robens Centre report and the NFSP, it was not black and white but we
would be acting on the Robens Centre report. The Federation would
approach PONU to obtain repayment for the eyesight tests. We were
prepared to go into battle.
(f) Horizon Polling Problems PC NW 06 01
MR PEBERDY reported that it was essential that subpostmasters knew of
these type of problems. They needed to know a bit more. That they were
awaiting responses to what had gone wrong and why they had been kept in
the dark.
MR PEBERDY also reported the problems on the effect mobile telephones
may have on the operation of Horizon equipment. They would need more
information. A notice should be considered for display in post offices.
MR JANNETTA advised that on CSR+ the business needed to be advised
that CSR+ does not operate well and considerably slows down balancing.
However, there was general discussion between the Executive Officers with
some Officers experiencing problems and others having no problems
MR PEBERDY advised that everything that was reported to the Federation
was taken up. Unless difficulties were reported, problems had to be logged
on. That there were user groups
It was agreed that a notice should be placed in the Subpostmaster advising
Subpostmasters to report all problems with Horizon and CSR + to the
Helpline.
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6. SUBPOSTMASTERS CONTRACT PC SC 03
(a) Standards for Agency Offices PC SC 03
No report.
(b) Losses and Gains Policy PC SC 27
MR PEBERDY reported that the Losses and Gains Policy was due for review
and that the Negotiating Committee wanted to take the whole of this back to
roll into an Interim Reply.
Both MR MORGAN-JONES and MR. PETER WALSH reported on cases
where subpostmasters were being asked to make good losses,
MR. DARVILL reported that multiples did not make good their losses on a
weekly basis but every month.
MR. MACLEAN reported on the many robberies that were occurring in i
Northern Ireland. 148 post offices were at risk in Northern Ireland and
although £2 million has been spent to improve security, robberies were
increasing, so that he would like something done.
MR FINLAY reported on a robbery where the Federation had not been
informed, that robberies were not being reported to the Federation so that it
made it look as though the Federation was uncaring.
MRS. REEVES agreed and asked why robberies could not be reported to
Shoreham.
MRS. KENDALL said that she would be happy to do the job as long as she
got the call, that the Post Office had got to do the job properly.
MR. MORRIS agreed and MR MORGAN-JONES reported that it was at the
discretion of the RNM to inform the Helpline.
It was agreed that support for subpostmasters after attacks should be sought
and that a system be improved to ensure that Executive Officers and
Headquarters are.advised about all significant incidents.
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3. MEMBERSHIP
3(a) Membership Recruitment. FM MS 03
The P&D Committee report on Membership Recruitment/Retention:
Telemarketing had previously been circulated. MR MARSHALL then
called upon MRS DAVIS to give a presentation on the proposal,
indicating ways in which the Federation might recruit more members
and broaden the delivery of information. During the trial, between
August and October last year Marot recruited over 180 members with a
subscription income value of just over £11,500 for the year. The
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present situation is that membership is haemorrhaging at an alarming
rate. Despite incentives, many Branches are not able to go out and
recruit members.
The main points included in the presentation were:-
Membership Recruitment / Retention
Marketing the new commercial activities
Marketing NFSP benefits
Maximising Commercial opportunities.
Advertising Sales
Future Advice Line
Membership Retention
To employ an outside company to do telephone recruitment for the
Federation would cost in the region of £50-60,000 per year on a
retained basis. On a commission basis costs quoted were £144.00 per
signed up member, more than the Federation would obtain in
subscription from the higher rate members.
New Subpostmasters were not being picked up. Feedback from the
trial indicated that some lapsed members had not left through
dissatisfaction with NFSP but had just not signed new mandates. A
telemarketing service would provide better information to Federation 1
HQ. and therefore to Branches about present and prospective
members. Telemarketing would not replace what the branches are
already doing, but will be supplemental.
Counters Club was about to be launched. Telemarketing could be
used to make members aware of all the new commercial activities.
There may even be opportunities for part sponsorship of the
telemarketing project from possibly Zurich or the Federation's other
commercial partners.
Other potential benefits of telemarketing would be better database
management, better communications with members and market
research. After initial instigation of the telemarketing service, it was
believed possible to run at no additional cost to the Federation. Set up
costs were estimated to be £30,000 per annum. One way of paying for
this without adding to overall costs would be by taking advertising sales
in house. Anticipated commission due to be paid on advertising sales
was £60,000.
Since the demise of Marot, Beverley Wright was acting as Agent on an
interim basis for Advertising sales but if the Federation does its own
telemarketing this could be taken on in house. A shortlist for interviews
by MR BAKER and MRS DAVIS was currently being drawn up.
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Estimated Costs and benefits of in-house telemarketing.
Benefits £ £ '
Advertising sales in house: 48,092
14st year subscription Income 10,000 58,092
Costs:
1 member of staff 25,000
Equipment 5,000 30,000
Estimated profit
For the future, we could contemplate a members call cycle and an
advice line, but this would require additional staffing.
It was proposed that the Federation appoint a member of staff to carry
out telephone recruitment & advertising Sales for the journal.
After further discussion on the benefits, disadvantages and logistics of
in-house telemarketing, agreement was reached that the P&D proposal
should go ahead.
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9. FUTURE EXECUTIVE COUNCIL MEETINGS
At the March meeting the motions will need to be dealt with and it was
proposed that the March meeting should commence at 2.00pm on
Sunday 18th March 2001.
MR MARSHALL requested that his report be moved, and this was DECISION
agreed unanimously.
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Al6 SPECIAL MATTERS
AI6A FINANCE
A6(!) Treasurer's Report FIAC 02
MR JANNETTA expressed his apologies to the Secretariat for
circulating his Report before it had been sent to Shoreham. Deep
concern about the Federation's finances was expressed. The
Federation would not meet its commitments now or in the future if
something drastic is not achieved.
A combined proposal was put forward by MR JANNETTA to increase I
Membership Fees by £5 for small offices and £15 for large offices, and I
to reduce the Branch per capita income to 25% of Federation I
Subscriptions.
After a great deal of discussion it was decided that the NATIONAL
TREASURER and the GENERAL SECRETARY should discuss multi-
layer subscriptions which could benefit each section of the membership
and report back to the March meeting, before any decision was taken
on MR JANNETTA'S proposals.
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A6(vi) Union Facilities PC HR 03
Congratulations were extended to THE GENERAL SECRETARY for
obtaining an additional £2,000 per month from the Post Office from ist
October 2000.
Out of date subscription forms had been sent to HR Service Centre for
them to pass on to new Subpostmasters.
A circulation dated 14th December 2000 carried an attached letter
from the Post Office confirming the secondment of Nadeam Butt and
Ken Boosey to the Federation until March 2001. Mr Butt and Mr
Boosey would undertake the role of Commercial Manager for the
Federation until March when the situation would be reassessed.
Mr Jannetta asked to move his report and this was agreed.
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DIANA DENTON : H
MariAN JONES : !
JANUARY 2001 H H
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