THE government's think tank 'demos' has come up with the view that the Post Office should become a high-profile bank, and offer financial services through the post office network
A great idea, we need as many services as possible to support the rural post office. This one could offer a much wider range of services, than the limited range of cash withdrawals and deposits which the Post Office is able to handle for some of the commercial banks. It could also produce a bigger income than the limited handling fee paid to the post office by the banks for their transactions.
It is a great shame that we have to re-invent the wheel. Some of us remember the Post Office Giro Bank, which was Harold Wilson's great concept and was introduced in 1968. Its service was so successful that its system of bill payments was copied by high street banks. Not only did it provide a service at every local post office, it also made a sound profit.
What happened to the Post Office Giro Bank? It was sold off in 1990 to Alliance and Leicester as one of many privatisations during the great sell off, of national assets by the previous government. Post Office Giro Bank should never have been sold for a short term quick injection of cash into government coffers. Its services should have been extended and improved.
Its continuing profits would have helped to keep post offices in profit. We now need an up to date, modern version of the Post Office Giro Bank, with a full range of financial services available to all rural residents.
The post office working party is monitoring the effects of post office closures on local communities. We are also looking into possible ways of supporting post offices, which survived the last round of closures; it isn't going to be easy in a declining economy, but the recession makes it even more important that rural areas do not see further erosion, of their limited local services.
County Councillor, Marhamchurch and Week St Mary.
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