Written question asked by Vincent Cable (Liberal Democrat) on Monday, 22 July 2002, in the House of Commons. It was due for an answer on Thursday, 19 September 2002. It was answered by Stephen Timms (Labour) on Thursday, 19 September 2002 on behalf of the Department of Trade and Industry.

Dept of Trade and Industry

Question: To ask the Secretary of State for Trade and Industry, what provision has been made by Consignia to compensate modified post offices for loss of income from ACT; and if she will make a statement. - Including figures. (Holding answer 24 July 2002).

Answer: Dr. Cable: To ask the Secretary of State for Trade and Industry what provision has been made by Consignia to compensate modified post offices for loss of income from ACT; and if she will make a statement. [72832] Stephen Timms: [holding answer 24 July 2002]: The Government is committed to the future of the post office network. £480 million has already been invested in modernisation of the post office network. In addition, the Government as owner of the Consignia Group, has taken steps to strengthen the management of the company, including the appointment of David Mills as Chief Executive for Post Office Limited who has been charged with development of a strategic plan to include widening commercial opportunities for the network. Banking will be a central part of post offices' strategy to move forward. Universal banking services, together with Post Office Limited's plans for an expansion of network banking--the provision of counter services for ordinary current accounts--should lead to a substantial increase in the range and volume of banking at post offices, tapping into a very much larger customer base than benefit recipients alone. This should benefit subpostmasters both directly and through increased footfall, providing a major income stream offsetting the loss over time of the benefit book related revenue.

Secondary information