Ruffley joins new All Party Group on Rural Services: First meeting taking to task top man at the Post Office

Monday, 5 March, 2007

David Ruffley MP is a founder member of a new, cross-party parliamentary group on rural services.

The All-Party Group on Rural Services will, as a first step, inquire into and produce a report on the future of rural post offices, to include positive recommendations for their future role. The Group will hear evidence from Alan Cook, the Managing Director of Post Office Ltd, at its next meeting on 8 March 2007.

The Group has already exposed shocking new facts on the future of the Post Office network:

• Adam Crozier, Royal Mail Chief Executive, has stated Royal Mail only needs 4,000 post offices to fulfil its licence obligations. The remaining 10,500, 8,000 of which are loss making rural offices, need to gain extra government subsidies or become profitable to survive.

• In 2005 the Post Office lost £2 million a week. In 2006 this rose to £4 million a week

• The Department for Work and Pensions decision to allocate pensions via bank accounts has removed 40 percent of Post Office's income.

David said:

'I am delighted to be a founder member of the All Party Group on Rural Services.

'It will provide a strong basis upon which to campaign on issues affecting communities in rural Suffolk.

'At our first meeting we are going to take to task the man who runs the Post Office- Managing Director Alan Cook.

'We have already uncovered some shocking new facts which could impact on the future of the post office network- in 2006 Post Office Ltd was losing £4 million a week and there are currently 8,000 rural post offices which need to gain extra government subsidies or become profitable in order to survive. Moreover, the government's decision to allocate pensions via bank accounts has removed 40 percent of the Post Office's income.

'This group comes at a crucial time for the countryside, with hot topics, such as the future of post offices, rural schools and hospitals and transport all high on the agenda.

'We will not be a talking shop, but a group with a clear commitment to produce recommendations on the issues that count in rural communities.

'I look forward to working with my colleagues on all sides of both Houses to secure a better deal for the countryside and for the people of Suffolk.'