13 November 2008
Following the Post Office Card Account statement, Mike Penning asks the Secretary of State for Work and Pensions if the new contract is an improvement on the old to help marginal post offices.

Mike Penning (Hemel Hempstead) (Con): I and thousands of my constituents have written in good faith to the Secretary of State over the past few months because we have been worried about the card account and the future of local post offices, both urban and rural. Sadly, while the decision was being made, three post offices in urban and rural parts of my constituency closed, but that decision has been made and I am now worried about the future service. Will the right hon. Gentleman give some indication of the revenue streams under the new contract? Will they be different from those under the previous contract? If so, is the new contract better or worse than the old one, as that will have an effect on the marginal post offices in our constituencies?

James Purnell: Clearly, that is a matter for the Post Office, and it depends on how many card accounts are opened. I know that the hon. Gentleman cares about this issue, but the terms of the contract have to be confidential. Even so, it is important that we look at how we can get other services into post offices so that they can become viable. That is exactly what they have asked for, and it is what they are committed to achieving.

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