Post Office Card Accounts
The issue: Dear Sir George,

I am writing to ask if you can bring pressure on the Government to award the renewal of the card account contract to the Post Office without further delay. It is clear that, in awarding the contract, factors such as the ready accessibility of village post offices should be taken into account. It is also clear that without the card account contract many thousands more rural post offices are likely to close.

As a part-time volunteer clerk at Abbotts Ann Post Office, I witness at first hand how much the card account is used and appreciated by retired people in the village. They use their card accounts to get the cash they need for everyday spending and, for many retired people without cars, it would be extremely inconvenient to have to go into Andover for this purpose.

The government could do a lot more to enhance the commercial viability of rural post offices; here are some suggestions:
1. Make it easier to open a card account - DWP puts a lot of obstructions in the way.
2. Increase the range of transactions that can be carried out with a card account.
3. Review decision not to allow television licenses to be renewed via Post Offices.
4. Research the range of services and transactions offered by rural POs in other EU countries so that we can learn by their example.

I know you have taken an interest in this issue in the past and I hope you will continue to try to influence the relevant ministers.

Yours sincerely, John Moon
Date Issue Raised: 12 Nov 2008
My response: Thank you for your email about the Post Office Card Account (POCA).
My party and I have repeatedly called on the Government to review the decision to abolish POCA, which is vital for people who do not have bank accounts. Under sustained pressure, the Government decided it would continue with a new account after 2010. It will be available nationally and customers will be eligible for the account on the same basis as they are now.
While the Government's decision on the Post Office Card Account is welcome, I am also aware that the contract for the new account may not necessarily go to the Post Office, creating further uncertainty for many sub-postmasters. I believe that, instead of managing decline, the Government should be trying to bring new business opportunities to the network. The bid from Post Office Ltd for the new POCA is particularly strong due to its existing extensive network.
As you may be aware, there is a legal requirement for this to be put out to competitive tender as a result of an EU directive. Clearly the process needs to be completed according to the law and as such, I have not signed EDM 1506. I am, however, very much aware, of the strength of feeling on this issue and I will continue to monitor the situation carefully. A large number of constituents have written to me on this important subject
In order to ensure the survival of local Post Offices, we have launched our Post Office Action Plan. The plan includes:

• encouraging local councils to consider opening ‘council counters’ in local branches;
• giving sub-post offices greater freedom to offer a wider range of commercial products; and
• pushing for more post offices to be ‘one stop shops’ for central Government services.

Best wishes, George Young

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