The recent debates surrounding the future of the Post Office network and the Postal Services Bill are of considerable significance to me personally, my constituents in North Devon and many people around the country. It is without doubt that the Royal Mail and the Post Office are cornerstones of British life and provide a vital service to millions of people. Consequently, the Liberal Democrats and the Coalition Government are absolutely committed to protecting and preserving these essential institutions.
Firstly, I'd like to assure you that there will be no program of closures; under the last Government over 6,000 post offices closed, taking with them many local village shops. Those who suffered most as a result were the most vulnerable in society - the elderly, those with reduced mobility, and small businesses.
The Coalition Government has committed £1.34 billion in new funding and we propose, in time, to convert the Post Office into a mutual structure. In practice, this could mean employees, sub postmasters and communities getting a greater say in how the Post Office is run. This would empower those who know the Post Office best, giving them a greater stake in its future, so that Post Offices continue to fulfil the vital role they play in their local communities.
While mutualisation could make a huge difference to the sustainability of the network, the Liberal Democrats are clear that before any changes can be made, the network needs a secure financial footing; ensuring a mutual could be built from solid foundations. That's why the Coalition Government has already committed to increase its Post Office subsidy to £180 million for 2011/12.
The impact of this legislation on Royal Mail must also be noted. The government are going to ensure the long term viability of Royal Mail by relieving it of its pension liability; a hugely significant sum. Furthermore, the government will write the "universal service obligation" into law, ensuring that all letters get to their destination, from John o'Groats to Land's End and all points in between, for the same price. Finally, the government will be overseeing an injection of private capital into Royal Mail to decrease its dependence on funding from the taxpayer, allowing substantial modernisation of the network and will be allocating 10% of Royal Mail's shares to its employees; such schemes have been shown to yield increased productivity and innovation as well as improving employee morale.
Post Offices continue to play a vital social role in the heart of local communities in North Devon and the country as a whole. They are an incredibly important resource, and I believe that the Government's plans will secure the future of the Post Office network for both employees and local communities.