3. Urgent Question: Post Office Provision

– in the Senedd on 14 December 2016.

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(Translated)

[R] signifies the Member has declared an interest. [W] signifies that the question was tabled in Welsh.

Photo of Ann Jones Ann Jones Labour 3:02, 14 December 2016

We have accepted two urgent questions this afternoon under Standing Order 12.66. I call on Llyr Gruffydd to ask the first urgent question.

Photo of Llyr Gruffydd Llyr Gruffydd Plaid Cymru 14 December 2016

(Translated)

Will the Government make a statement on the effect of the UK Government’s plans for a reduction in Post Office provision in rural areas? EAQ(5)0092(CC)[W]

Photo of Carl Sargeant Carl Sargeant Labour 3:02, 14 December 2016

I thank the Member for his question. We recognise the importance of post offices and the important services they provide to local communities. As the Member will know, this is not a devolved matter, however I understand that the UK Government are currently consulting on the post office network. This consultation contains no specific proposals for rural post offices.

Photo of Llyr Gruffydd Llyr Gruffydd Plaid Cymru 3:03, 14 December 2016

(Translated)

Well, I’m not sure if that’s entirely correct, Cabinet Secretary, because there is a duty at the moment for the Post Office to ensure that there is provision within some 3 miles of 95 per cent of the rural community in the UK. That is being reviewed as part of the proposals put forward by the UK Government at the moment, and who knows what the outcome of that will be. But certainly, it’s a cause of concern for us all, and on top of that, we know that the subsidy provided by the Westminster Government to the post office network will lapse in a little over a year, in March 2018. Now, with post offices at their busiest, of course, at this Christmas period, can you tell us what input you as a Government have had into this review that is ongoing, particularly bearing in mind, of course, that only last week the First Minister told me, in response to a question on the future of rural banks, that his priority now is to secure the future of the post office network, because they can provide certain services in banking? Would you agree with me, Cabinet Secretary, that the best way now of securing the future of our post offices in Wales is to ensure that it’s all devolved to us here?

Photo of Carl Sargeant Carl Sargeant Labour 3:04, 14 December 2016

I’m certainly supportive of the principle of supporting post offices in our communities, and rightly so, but the Member is right that this decision matter lies with the UK Government. I am not aware of the plans to close rural post offices. I think the Member may have picked up this story from ‘The Telegraph’—[Interruption.]—and other information sources. My understanding is that the current UK Government has committed to maintaining the post office network at its current size of 11,600 branches, but he’s right to raise the issue that we should keep an eye on what they’re doing in Westminster, as who knows what they may do with the post offices in the future.

Photo of Mr Simon Thomas Mr Simon Thomas Plaid Cymru

(Translated)

There is a risk for many communities, however, because we’re already losing the banks—as has already been mentioned a number of times in the Assembly recently—and the solution for that, for a number of bodies, including the Government here and the Government in Westminster, is using the post office network to deal with that loss. Now, there are two problems there. There’s the problem that Llyr Gruffydd has just outlined, but the second problem is that not all post offices, particularly in our smaller towns, can cope with businesses. What we need is a safe window to deal with the funds paid into post offices by businesses, and if we lose our banks, then post offices do have to handle rural businesses and businesses in rural towns. There’s a good example of this happening in Blaenau Ffestiniog, where the post office has moved, but in moving it has safeguarded the ability to deal with small businesses. That’s how we want to see things developing. Although it’s not devolved, it’s extremely important that this Government does put pressure on the Westminster Government to ensure that that provision is available in rural Wales, and that it’s adequate, not only for individuals but also for small businesses, too.

Photo of Carl Sargeant Carl Sargeant Labour 3:06, 14 December 2016

The Member is right; the consultation currently under way is intended to inform the next state aid application to allow the Government to continue to fund the uneconomic elements of the Post Office network, which I think they should look at very carefully. The Welsh Government will be making a representation and I would urge the Member to do the same.

Photo of Mark Isherwood Mark Isherwood Conservative

In fact, I think you’ve just answered my question. I think we’re all relying on that ‘Telegraph’ article in which the UK Government business, energy and industrial department says the consultation

‘has nothing to do with closing branches’, and the Post Office spokesperson said the consultation was part of the Government’s application to the European Union to continue the state aid to the network.

I welcome the fact that you say you’re going to make representations. I wonder if you could confirm that you would share both the representations you make and the responses you receive with the Assembly.

Photo of Carl Sargeant Carl Sargeant Labour

I think it would be difficult if we were to start having urgent questions by ‘The Telegraph’ every week—because it’s in ‘The Telegraph’. I would suggest that wasn’t the case in this case, but I did also see the article in that publication. I will be happy to share with Members the Government’s response and the response back from the UK Ministers.

Photo of Ann Jones Ann Jones Labour 3:07, 14 December 2016

Thank you very much, Cabinet Secretary.