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Search forHuge sigh of relief for rural post offices at card news
Tuesday, November 18, 2008, 13:27
Ministers have now decided Post Office Ltd can continue providing the Post Office Card Account instead of putting the £1 billion contract out to tender.
Campaigners had stressed that if the contract had been lost, people in rural areas would have had to travel miles to collect their pensions and benefits, and the move would have robbed village post offices of a vital part of their income.
North Cornwall MP Dan Rogerson said he had received thousands of campaign postcards from his constituents opposing the card account going out to private tender.
He described the government's announcement as "an overdue victory for common sense''.
"It's been clear for months that the only provider who can ensure that the card account is available to the broadest range of people was Post Office Ltd.
"That another contractor could even have been seriously considered shows the scant regard and thin understanding that ministers have of Britain's rural areas.''
Margaret Marshall, who runs Blisland post office, said campaign postcards had been sent from her customers to Mr Rogerson.
She described the government's decision to stick with Post Office Ltd as "wonderful news''.
"A lot of people here collect their pensions through the card account.
"We have a lot of elderly people in the village, some of whom can't drive, and it is very difficult for them to get to a bank, so it's brilliant news all round.''
Tintagel sub-postmaster Mick Goward commented: "The news is good.
"It will help to save post offices providing the Department of Work and Pensions (DWP) don't continue to tell people they must have their money paid into a bank account.
"I have seen letters to pensioners telling them that they must have their pension and green giro paid into a bank account without informing them of the option that they can still use a post office.
"So long as the DWP plays fair, it's a good deal.''
DWP secretary James Purnell said the decision to cancel the competitive tender was made to support a viable post office network.
"Now is not the time for the Government to do anything to put the network at risk, particularly as post offices are often the only providers of financial services in remote areas,'' he said.
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