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| 2,500 more post offices to close | 2,500 more post offices to close |
| (20 minutes later) | |
| About 2,500 post offices - a fifth of those left in the UK - are to close by 2009, the government has confirmed. | About 2,500 post offices - a fifth of those left in the UK - are to close by 2009, the government has confirmed. |
| Trade Secretary Alistair Darling, ahead of making a Commons statement on the closures, said the current loss-making network was "unsustainable". | Trade Secretary Alistair Darling, ahead of making a Commons statement on the closures, said the current loss-making network was "unsustainable". |
| He said 4 million fewer customers were using post offices every week than two years ago and it was losing £4m a week. | He said 4 million fewer customers were using post offices every week than two years ago and it was losing £4m a week. |
| Opposition parties say further closures will devastate local communities, particularly in rural areas. | Opposition parties say further closures will devastate local communities, particularly in rural areas. |
| More than 4,000 post offices have shut in the past eight years. | More than 4,000 post offices have shut in the past eight years. |
| The next round of closures "backed by £1.5bn investment from government" would contribute to a sustainable network, Mr Darling said. | The next round of closures "backed by £1.5bn investment from government" would contribute to a sustainable network, Mr Darling said. |
| The network has been affected by the decision to pay pension and child benefit directly into bank accounts while TV licences, driving licences, passports and tax disks are now being supplied online and through other retailers. | The network has been affected by the decision to pay pension and child benefit directly into bank accounts while TV licences, driving licences, passports and tax disks are now being supplied online and through other retailers. |
| I'm very clear about this - that we've got to have a national network of post offices Alistair DarlingTrade Secretary | I'm very clear about this - that we've got to have a national network of post offices Alistair DarlingTrade Secretary |
| However, Mr Darling said the loss of that business was off-set by its reach into other areas - post offices were the largest provider of foreign currency and the third largest provider of travel insurance, while its saver accounts have over £1.8bn. | |
| "There will be other announcements soon that show that the post offices are determined to get more business and therefore more customers through the front door," he told BBC Radio 4's Today programme, but did not elaborate. | "There will be other announcements soon that show that the post offices are determined to get more business and therefore more customers through the front door," he told BBC Radio 4's Today programme, but did not elaborate. |
| "On top of that the parent company Royal Mail has been losing business and Royal Mail itself does need to make changes so that it can win new business in the future," he added. | "On top of that the parent company Royal Mail has been losing business and Royal Mail itself does need to make changes so that it can win new business in the future," he added. |
| "I believe there is a good future for both post office branches and the Royal Mail group itself provided we make the changes so they can compete effectively." | "I believe there is a good future for both post office branches and the Royal Mail group itself provided we make the changes so they can compete effectively." |
| The closures "backed by £1.5bn from government" would contribute to a sustainable network. | The closures "backed by £1.5bn from government" would contribute to a sustainable network. |
| 'Build on strengths' | 'Build on strengths' |
| "I'm very clear about this - that we've got to have a national network of post offices. If you went for a purely commercial network you'd be down to only about 4,000 and that makes no sense at all," Mr Darling said. | "I'm very clear about this - that we've got to have a national network of post offices. If you went for a purely commercial network you'd be down to only about 4,000 and that makes no sense at all," Mr Darling said. |
| "What I believe we can do is build on some of the strengths of the post offices." | "What I believe we can do is build on some of the strengths of the post offices." |
| Mr Darling is expected to publish the details of a consultation exercise into the proposed restructuring of the post office system. | Mr Darling is expected to publish the details of a consultation exercise into the proposed restructuring of the post office system. |
| It is believed he will order a series of "local area reviews" during the next 18 months in 60 areas, each covering several constituencies. | It is believed he will order a series of "local area reviews" during the next 18 months in 60 areas, each covering several constituencies. |
| There have been 2,500 responses from pressure groups and members of the public since the consultation process was ordered in December last year. | There have been 2,500 responses from pressure groups and members of the public since the consultation process was ordered in December last year. |
| Call for better strategy | Call for better strategy |
| The Conservatives say the government has failed to have a long-term vision for the system. | The Conservatives say the government has failed to have a long-term vision for the system. |
| Tory post office spokesman Charles Hendry said: "What the government should be doing is having a totally different strategy. | Tory post office spokesman Charles Hendry said: "What the government should be doing is having a totally different strategy. |
| "It shouldn't just be looking to see how it can just manage the decline of this vital service. It should be creating new business opportunities so the post offices survive on their business - which is what they all want - rather than having to survive on subsidy." | "It shouldn't just be looking to see how it can just manage the decline of this vital service. It should be creating new business opportunities so the post offices survive on their business - which is what they all want - rather than having to survive on subsidy." |
| Liberal Democrat trade spokeswoman Susan Kramer said the closures would be a "death knell" for many communities. | Liberal Democrat trade spokeswoman Susan Kramer said the closures would be a "death knell" for many communities. |
| "The government sees only a business in inevitable decline. Its plan is designed purely to save money and has nothing to do with meeting the long-term needs of people who rely on post offices for essential services." | "The government sees only a business in inevitable decline. Its plan is designed purely to save money and has nothing to do with meeting the long-term needs of people who rely on post offices for essential services." |