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| Version 0 | Version 1 |
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| Council bids to run post offices | Council bids to run post offices |
| (40 minutes later) | |
| Essex County Council has become the first local authority in the country to discuss taking over the running of post offices earmarked for closure. | |
| The council is negotiating a buy-out price from the Post Office and said some of the 32 threatened branches could be saved within two months. | |
| The closures in Essex were among 2,500 nationwide announced in 2006 in a bid to stem network losses of £4m a week. | The closures in Essex were among 2,500 nationwide announced in 2006 in a bid to stem network losses of £4m a week. |
| Postal Affairs Minister Pat McFadden has given approval to the scheme. | |
| And the Post Office said it was willing to work with other local authorities on similar takeovers. | And the Post Office said it was willing to work with other local authorities on similar takeovers. |
| Subsidy | Subsidy |
| The Post Office gets a £200m government subsidy to offset some of its losses. | The Post Office gets a £200m government subsidy to offset some of its losses. |
| Essex County Council moved to allay fears that council tax payers could end up subsidising what has been a huge loss-making business. | Essex County Council moved to allay fears that council tax payers could end up subsidising what has been a huge loss-making business. |
| It said it believed it could make a profit by combining postal services with council services. | It said it believed it could make a profit by combining postal services with council services. |
| Cllr Stephen Castle said other local authorities had expressed an interest in its project. | Cllr Stephen Castle said other local authorities had expressed an interest in its project. |
| "We have had interest from right across the country - people are clearly very worried about the future of their post offices. | "We have had interest from right across the country - people are clearly very worried about the future of their post offices. |
| "It's not just an Essex issue, but... we think we have found a new way of tackling this." | "It's not just an Essex issue, but... we think we have found a new way of tackling this." |
| Other councils will be watching what happens with Essex to see if this is the way forward Edward WelshLocal Government Association | Other councils will be watching what happens with Essex to see if this is the way forward Edward WelshLocal Government Association |
| Council leader Lord Hanningfield said he was "delighted" the council might be able to save some post offices under its "unique and groundbreaking" deal. | Council leader Lord Hanningfield said he was "delighted" the council might be able to save some post offices under its "unique and groundbreaking" deal. |
| He said: "There is a huge amount of work still to do and we will now be conducting our own assessment on the merits and financial viability of each post office, together with the needs of the communities that they serve. | He said: "There is a huge amount of work still to do and we will now be conducting our own assessment on the merits and financial viability of each post office, together with the needs of the communities that they serve. |
| "Because of this, it is too early to mention specific branches at this stage." | "Because of this, it is too early to mention specific branches at this stage." |
| He added the scheme was "not about replacing one public subsidy with another". | He added the scheme was "not about replacing one public subsidy with another". |
| The aim was for any investment to be used over three years to help each branch to move towards becoming financially self-sufficient and "cost neutral" to the council, he said. | The aim was for any investment to be used over three years to help each branch to move towards becoming financially self-sufficient and "cost neutral" to the council, he said. |
| Rising losses | Rising losses |
| The scheme has the backing of the Local Government Association, which represents local authorities in England and Wales. | The scheme has the backing of the Local Government Association, which represents local authorities in England and Wales. |
| It denied it would be a waste of taxpayers' money, but stressed the subsidy the Post Office gets from the government should go to councils to help them run "these essential services". | It denied it would be a waste of taxpayers' money, but stressed the subsidy the Post Office gets from the government should go to councils to help them run "these essential services". |
| Edward Welsh, of the LGA, said: "Other councils will be watching what happens with Essex to see if this is the way forward." | Edward Welsh, of the LGA, said: "Other councils will be watching what happens with Essex to see if this is the way forward." |
| The government announced at the end of 2006 that 2,500 of the country's 14,000 post offices were likely to close by the end of this year because of rising losses largely caused by fewer people using the network. | The government announced at the end of 2006 that 2,500 of the country's 14,000 post offices were likely to close by the end of this year because of rising losses largely caused by fewer people using the network. |
| Critics say the closures will have a devastating effect on communities, particularly rural ones. | Critics say the closures will have a devastating effect on communities, particularly rural ones. |
| Mr McFadden supported Essex's move, but said it was up to councils to come to their own deal with the Post Office. | Mr McFadden supported Essex's move, but said it was up to councils to come to their own deal with the Post Office. |
| "If they are serious about it and are willing to put money in, and they want to be answerable to their local council tax payers for that decision, then I would encourage Post Office Ltd to talk them about that seriously." | "If they are serious about it and are willing to put money in, and they want to be answerable to their local council tax payers for that decision, then I would encourage Post Office Ltd to talk them about that seriously." |