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| 2,500 post offices face closure | 2,500 post offices face closure |
| (30 minutes later) | |
| About 2,500 post offices are expected to close by 2009 because of rising losses and fewer people using the network, the government has announced. | |
| Trade and Industry Secretary Alistair Darling told MPs that the cuts were needed because of losses of £4m a week, twice as much as in the previous year. | Trade and Industry Secretary Alistair Darling told MPs that the cuts were needed because of losses of £4m a week, twice as much as in the previous year. |
| He also announced a five-year investment package of £1.7bn and local consultations on restructuring plans. | He also announced a five-year investment package of £1.7bn and local consultations on restructuring plans. |
| The Conservative Party said ministers had failed to have a long-term vision. | The Conservative Party said ministers had failed to have a long-term vision. |
| As part of the restructuring, Mr Darling proposed setting up 500 outlets for small, remote communities such as mobile post offices and services based in village halls, community centres and pubs. | As part of the restructuring, Mr Darling proposed setting up 500 outlets for small, remote communities such as mobile post offices and services based in village halls, community centres and pubs. |
| The consultation will seek views on the proposals until 8 March 2007. | The consultation will seek views on the proposals until 8 March 2007. |
| Our strategy aims to protect the national network, equipping it to meet the challenge of today Alistair Darling MP,Trade and Industry Secretary | Our strategy aims to protect the national network, equipping it to meet the challenge of today Alistair Darling MP,Trade and Industry Secretary |
| The government also published new access criteria stating 90% of the population should be within a mile of a post office. | |
| In rural areas, 95% of the population would be within three miles, doubling to six miles in remote areas. | |
| The closures are likely to begin next summer and will continue for 18 months, reducing the size of the network to about 11,760. | |
| Mr Darling said the post office had an important social and economic role. | |
| 'Long-term challenge' | |
| "Piecemeal closures are no good for anyone. The Post Office must plan a proper national network. | "Piecemeal closures are no good for anyone. The Post Office must plan a proper national network. |
| "Post offices face a long-term challenge. Internet, email and text-messaging have meant that people, young and old alike, increasingly use the phone or internet banking, cash point machines or direct debits to pay their bills. | "Post offices face a long-term challenge. Internet, email and text-messaging have meant that people, young and old alike, increasingly use the phone or internet banking, cash point machines or direct debits to pay their bills. |
| "People are increasingly choosing to access services in different ways, resulting in some four million fewer people using their post office each week than two years ago. | "People are increasingly choosing to access services in different ways, resulting in some four million fewer people using their post office each week than two years ago. |
| "Our strategy aims to protect the national network, equipping it to meet the challenge of today." | "Our strategy aims to protect the national network, equipping it to meet the challenge of today." |
| Mr Darling said the annual £150m subsidy to help rural branches stay open will be extended beyond 2008 until 2011. | Mr Darling said the annual £150m subsidy to help rural branches stay open will be extended beyond 2008 until 2011. |
| There was widespread recognition that the current size of the network of 14,000 post offices is "unsustainable", he said. | There was widespread recognition that the current size of the network of 14,000 post offices is "unsustainable", he said. |
| 'Destroying business' | |
| Conservative post offices spokesman Charles Hendry said the announcement would bring fear and anxiety to people, often the most vulnerable, across the country. | |
| "The Government needs to recognise that if the local post office closes, often the last shop in the village closes as well, and a van for a couple of hours a week is no replacement for a post office open full time. | |
| "His [Alistair Darling's] vision is to have fewer post offices, providing fewer services to fewer people." | |
| Post offices have been affected by the decision to pay pension and child benefit directly into bank accounts. | Post offices have been affected by the decision to pay pension and child benefit directly into bank accounts. |
| TV licences, driving licences and passports have also gradually switched to being sold online or through other retailers. | TV licences, driving licences and passports have also gradually switched to being sold online or through other retailers. |