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Date:
Mr McCartney
David Drew MP
Routine
Mike Whitehead CGBPS 1A.
306 BPR 215 1775
DREW.DOC
17 June 1999
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David Drew MP
House of Commons
London
SW1A 0AA
Thank you for your letter of 25 May to Stephen Byers, Secretary of State, about three
separate issues. As Minister responsible for matters relating to the Post Office, I am
replying to your enquiry about the changes announced recently to the Horizon project to
automate the post office network.
I should first like to assure you that the Government fully recognises the importance of the
post office network and both we and Post Office Counters Limited (POCL) are committed to
the maintenance of a nationwide network of post offices and are very aware of the
importance of post offices, particularly in rural areas, to their local communities. Over 98%
of the network, including all sub-post offices of course, are privately owned and operated,
representing a valuable partnership between the public and private sectors.
As regards the Horizon project, Stephen Byers announced on 24 May of a number of
changes to put the project to computerise the Post Office network and to automate the
payment of pensions and other benefits back on track to deliver the long overdue
computerisation of the post office network, in partnership with ICL, and major reductions in
benefit fraud. Stephen wrote to all Members of Parliament on 27 May updating them on
developments with the Horizon project
Since POCL operates in an increasingly competitive environment for traditional and new
business alike, it is always interested in introducing new business to post offices in order to
maintain their commercial viability, both to protect the livelihoods of their agents and staff,
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and prevent post office closures. As you may be aware, recent new business includes
agreements between POCL and the Co-operative and Lloyds/TSB Banks for the provision
of personal banking services for their customers at post office outlets throughout England
and Wales. In recent years new business has also included free payment of gas bills,
Bureaux de Change, and travel insurance. Trials of further insurance products have also
recently begun.
Finally, I have established a working group to oversee progress with the revised Horizon
contract and to explore further the commercial potential of the automated network in which
the main Post Office unions and the National Federation of SubPostmasters are actively
participating.