POL00393126 - Email from Calum Greenhow to Mark R Davies RE: Support to Sustain our Post Office

Evidence on official site

POL00393126
POL00393126

From: Calum Greenhowf_

Sent: Thur 30/05/2019
To: Mark R Daviesf
Subject: RE: Support to Sustain our Post Office

No problem Mark,
Nothing in the DM today.

Calum

Calum Greenhow

Chief Executive Officer

The National Federation of SubPostmasters

Evelyn House, 22 Windlesham Gardens
Shoreham-by-Sea, West Sussex BN43 5AZ

W: www.nfsp.org.uk

This email (and any attachment) is confidential, may be legally privileged and is intended for the addressee only. If
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National Federation of SubPostmasters is a company limited by guarantee (incorporated in England, company number

9771284)

From: Mark R Davies }
Sent: 30 May 2019 08:22
To: Calum Greenhow <

Subject: Re: Support to Sustain our Post Office

Hi Calum
Thanks for this - appreciate the heads up.
Mark

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From: Calum Greenhow <
Sent: Thursday, May 30, 2019 7:11 am
To: Mark R Davies

Subject: Re: Support to Sustain our Post Office

Hi Mark,

Our survey was featured on Anglia TV last night. We were contacted to provide an interview but declined due to other

commitments.

We did provide a comment around us working with Government and Post Office to ensure a viable and sustainable

network going forward.

Calum

Chief Executive Officer
National Federation of Subpostmasters

Tel
Mobile
Email 4

---- Mark R Davies wrote ----

Hi Calum

Just to update we expect tomorrow coverage in Mail will be about banking, though they may drop it as had

misunderstood some of the key elements.

Our position will be that in 2017 we negotiated the framework to replace the previous ad hoc arrangements: there

was no consistency around pricing between banks and obviously others had come into the market.

So we negotiated the agreement. Since then a huge amount has happened: more bank branches have closed, more
services been added, more banks have come online and of course the services are growing. So the result has been
that the 2017 deal wasn’t covering costs - hence the renegotiation which is almost complete and our commitment to

pay more to Postmasters as a result, inc the £17m which Al has referenced.
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We are offering the Mail an article from Al which I will share with you when it is signed off
Cheers
Mark

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From: Calum Greenhow {
Sent: Tuesday, May 28, 2019
To: Mark R Davies

Subject: RE: Support to Sustain our Post Office

‘O pm

Thanks Mark,

We spoke at length about the Hard To Place Postmasters but from the perspective that it is Government policy not
spend taxpayers money on a closure so unless there is a suitable alternative no compensation will be paid.

I explained that my wife was one of those hard to place but from the NFSP’s perspective, we have to have a policy that
allows these individuals to leave with compensation especially those who are well beyond retirement age or with ill
health.

He mentioned the Minister’s letter but I haven’t seen that so couldn’t comment.
Calum

Calum Greenhow

Chief Executive Officer

The National Federation of SubPostmasters

Evelyn House, 22 Windlesham Gardens
Shoreham-by-Sea, West Sussex BN43 5AZ

W: www.nfsp.org.uk

This email (and any attachment) is confidential, may be legally privileged and is intended for the addressee only. If
you have received it in error please inform us immediately by email responding to the sender and then delete this
message. Please do not copy it, disclose its contents to any other person or use it for any purpose. Thank you for your
cooperation.
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We have taken reasonable precautions to ensure that this email and any attachments have been scanned for software
viruses. We cannot accept liability for any damage sustained as a result of software viruses and would advise you to
carry out your own virus checks before opening any attachment.

You can view our privacy policy online at www.nfsp.org.uk/privacy

National Federation of SubPostmasters is a company limited by guarantee (incorporated in England, company number
9771284)

From: Mark R Davies GRO . ~~
Sent: 28 May 2019 15:14
To: Calum Greenhow
Subject: RE: Support to Sustain our Post Office

Thanks Calum, appreciate the update. Great to talk to you earlier as well.
From our side we understand they will be doing stories this week on:

- the Minister’s letter to MPs with comments from CWU that there’s nothing new and no real progress being
outlined

- Banking services and views that the Post Office was naive to sign up to the initial agreement/bad deal

- Taxpayer money spent on GLO

- The 400 trapped NT branches where postmasters want to leave but we can’t find an alternative site

- The loan from BEIS listed in report and accounts

- The reduction in pay to postmasters since 2012

- The suggestion that 75 per cent of Postmasters feel they are earning less than the minimum wage

I will get the position on banking framework for you. We are certainly negotiating a better deal but I need to check
the details on the existing.

Cheers
MArk

Sent from Mail for Windows 10

From: Calum Greenhow < GRO
Sent: Tuesday, May 28, 201:
To: Mark R Davies

Subject: RE: Support to Sustain our Post Office

Hi Mark,

Just spoke to the Daily Mail who wanted to talk around a guarantee of subsidy for the community network from
Government, better remuneration to the network from Post Office and was the original banking framework a good
deal as it was loss making from the start (I didn’t know that).

I put across the idea of support to sustain the network and that a purely negative view point could undermine
confidence in the network.

He wanted my view on the decline of income to the network since 2012 so I presented it in a twofold manner. Firstly
that with the decline in Government services since 2003, led to around 6000 Post Office closing between 2003 — 2010
but when the coalition Government took over in 2010, they didn’t want any further closures, however they did want
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to reduce the cost of PO Ltd to the British taxpayer. This led to NT and the new business models with the emphasis to
reduce the operating model and therefore make the Post Office a more attractive proposition to do business with for
Government. We kept our side of the bargain but Government hasn’t come through with new work but has reduced
the amount we receive for service such as tax discs etc. Secondly, that competition has increased and footfall has
decreased, this has meant that we are selling less products, which results in our commission is going down. I used the
pint of milk analogy — if I sell 100 pints of milk for 50p, I will earn £50 but if I sell 50 pints of milk for 50p, I will earn
only £25. I’m still paid the same per pint of milk but as I am selling less, then I earn less and this is exactly what is
happening to the network remuneration. As a result, we need to ensure we have more products and services that
customers want.

He mentioned the remuneration review in the autumn, which the NFSP welcomes as without a network there is no
Post Office. The overarching aspect that has to happen though is the relationship between the network and Post
Office needs to improve. We need to work together to grow the business, not simply continue to scale back. Business
leaders have to set the example. Government and other stakeholders have to treat the network as a resource not a
cost and treat these businesses with dignity and respect. If the network isn’t treated right, it will not encourage the
network to be cooperative.

The next aspect was around the banking framework. Something I hadn’t heard before was that it has saved the banks
£1bn, yet Post Office are providing it currently for a loss. Is that therefore a good deal, he asked. If correct, it’s an
amazing deal for the banks but certainly isn’t for the Post Office and explains why the network has not been paid
properly for the work they do on behalf of the banks. As the Post Office is state owned, shouldn’t Government step in
and ensure that the business is remunerated properly for taking on the responsibility that comes with cash, given the
amount the Government helped out the banks through the financial crash?

He also mentioned the possibility of Al Cameron writing a piece for the Daily Mail to put the Post Office’s point of
view.

Finally, he asked about the legal fees for the court case and should it be capped. My answer was that the Post Office
keep losing, irrespective of what argument is put up and on that basis, they are not doing very well. As the NFSP are
not part of it, we are waiting on decision by the Judge as we want to ensure that our colleagues are treated properly
and that a decision can be made on the robustness of Horizon. As those on the front line, our colleagues need to know
things are right.

As always, there is what I said and what is reported however, he did indicate that they want to help ensure a viable
network going forward and that destabilising it would not be helpful in the long run.

Enjoy your holiday,
Calum
Calum Greenhow

Chief Executive Officer

The National Federation of SubPostmasters
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POL00393126

Evelyn House, 22 Windlesham Gardens
Shoreham-by-Sea, West Sussex BN43 5AZ

W: www.nfsp.org.uk

This email (and any attachment) is confidential, may be legally privileged and is intended for the addressee only. If
you have received it in error please inform us immediately by email responding to the sender and then delete this
message. Please do not copy it, disclose its contents to any other person or use it for any purpose. Thank you for your
cooperation.

We have taken reasonable precautions to ensure that this email and any attachments have been scanned for software
viruses. We cannot accept liability for any damage sustained as a result of software viruses and would advise you to
carry out your own virus checks before opening any attachment.

You can view our privacy policy online at www.nfsp.org.uk/privacy

National Federation of SubPostmasters is a company limited by guarantee (incorporated in England, company number
9771284)

From: Mark R Davies [~ GRO y
Sent: 24 May 2019 21
To: Calum Greenhow <__
Subject: Re: Support to Sustain our Pos’

ice

Hi Calum

This is exactly the kind of thing I wanted to talk to you about on Tuesday, which I hope you can still do?

We are encouraging Postmasters to do the same and also to write to the Daily Mail making clear that while of course
they want more support PO and govt, the Mail campaign is potentially damaging to their businesses, risking

relationships with the banks and other clients.

If they were also to write to MPs of all parties, which is something we are also trying to encourage, it would be
enormously helpful.

To stress, you have to do and say what you feel is right, but please do use me as a resource to bounce ideas off and to
assess potential outcomes. Having been on all sides of the fence - journalist, political adviser and comms director- I
can provide insight and of course we all want the same thing for the business!!

Have a nice weekend and let me know a good time to talk on Tuesday.

Best wishes

Mark
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From: Calum Greenhow ¢
Sent: Friday, May 24, 2019 7:12 pm
To: Debbie.K Smith; Mark R Davies
Subject: Support to Sustain our Post Office

Hi Debbie,

My understanding is that the CWU is encouraging as many of its membership (not necessarily SPM’s or employees of
PO) to write to as many Labour MP’s as they can questioning the relationship between PO and the NFSP. Fortunately,
MP’s are about to go on recess so the impact will be reduced.

Rather than the old logo of “use it or lose it”, we’d like to promote the PO and the network in a “support us, to sustain
us” campaign, which has a far more positive outlook. All the CWU has is negativity to undermine the PO by blaming
management and the Board. The CWI IS an organisation focused on employees in Royal Mail and BT, whereas the
NFSP is an organisation of self employed members who own and operate 98% of the network of Post Offices.

As investors we want PO to succeed because that’s in our interest.

Calum

Calum Greenhow
Chief Executive Officer

The National Federation of SubPostmasters

Shoreham-by-Sea, West Sussex BN43 SAZ

x Evelyn House, 22 Windlesham Gardens

4 bas

This email (and any attachment) is confidential, may be legally privileged and is intended for the addressee only. If
you have received it in error please inform us immediately by email responding to the sender and then delete this
message. Please do not copy it, disclose its contents to any other person or use it for any purpose. Thank you for your
cooperation.
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We have taken reasonable precautions to ensure that this email and any attachments have been scanned for software
viruses. We cannot accept liability for any damage sustained as a result of software viruses and would advise you to
carry out your own virus checks before opening any attachment.

You can view our privacy policy online at www.nfsp.org.uk/privac\

National Federation of SubPostmasters is a company limited by guarantee (incorporated in England, company
number 9771284)

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