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Post Office Closures in Rotherham

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Post Office Closures in Rotherham ROTHERHAM BOROUGH COUNCIL – REPORT TO MEMBERS 1. Meeting: Performance and Scrutiny Overview Committee th 2. Date: Friday 12 September 2008 3. Title: Post Office Closures in Rotherham 4. Programme Area: Chief Executive’s 5. Summary As part of the Government’s Network Change Programme to secure the long-termth sustainability of the post office network, an announcement was made on 5 August to close six post offices in Rotherham. The six post offices are: 1. Salisbury Road Post Office, 66a Salisbury Road, Maltby 2. St Ann's Post Office, 45 St Ann's Road 3. Toll Bar Post Office, 500 Wortley Road 4. Whinney Hill Post Office, 14 Old Gate Lane, Thrybergh 5. Parkgate Post Office, 96 Broad Street, Parkgate 6. Harley Post Office, 11 Harley Road, Harley This report sets out the background to the Network Change Programme , gives details of the post offices identified for closure in Rotherham, demographics of the affected communities and considers the impact that planning applications in those areas may have on post office provision. 6. Recommendations That PSOC: • Considers the issues outlined in this report • Gives consideration as to how the Council might respond to Post Office Ltd on the proposed closures. Page 1 1 7. Proposals and Details Background The emergence of a greater choice of alternative ways to access Post Office products (notably the move towards increased electronic payment of Government benefits and increasing internet usage) has led to a sharp reduction in the number of traditional transactions at Post Office branches. These changes mean that the Post Office network of 14,000 branches is considered to be unsustainable and is currently losing around £4million a week. In June1 2000 the Government’s Performance and Innovation Unit (PIU) published a report criticising how Post Offices had kept up with the challenges of a rapidly changing market place. The report found that in urban areas there were too many branches competing for too little business. As a result the Government carried out the Urban Network Reinvention Programme which took place from 2002-4 and led to the closure of 2,486 urban sub post offices at a cost of £210 million. In Rotherham 11 post offices closed during 2003 and 2004 as part of this Programme. These were: CONSTITUENCY POST OFFICE Rotherham Canklow Milton Road College Road Eastwood View Wentworth Swinton Common Kilnhurst Highthorne Bramley Rother Valley Whiston Morrell Street, Maltby Manvers Road, Swallownest In May 2007 the Government announced that a further 2,500 branches would close by 2009 under the Network Change Programme. The aim of this Programme is to ensure the long-term sustainability of the post office network by reducing the current number of post offices and at the same time investing in the remaining branches. The Government has invested £1.7billion to be used to pay off postmasters and invest in the remaining branches. This Programme began in July 2007 and the last consultation is scheduled to finish in October 2008. POL has stated that under this Programme, 2,500 post offices must close. Therefore if a post office identified for 1 Government’s Performance Innovation Unit (PIU) Counter Revolution – Modernising the Post Office Network . 2 closure is ‘saved’ following a successful local campaign, another branch within the same geographic area as defined by POL will close instead. In drawing up their Area Plans , POL has used parliamentary constituency boundaries but grouped constituencies together into Areas that do not reflect county or district borders, hence Rotherham is part of a plan for “South Yorkshire with Huddersfield, Colne Valley and North Derbyshire.” Access criteria introduced by the Government stipulate that when selecting post offices for closure, consideration must be given to not only the physical distance to the next nearest branch but also to public transport arrangements, topography, local demographics and the impact on local economies. The Access criteria state that: • Nationally, 99 percent of the population will be within 3 miles of a post office, and 90 percent within 1 mile. • In deprived urban areas, 99 percent of the population will be within 1 mile of a post office. • In urban areas, 95 percent of the population will be within 1 mile of a post office. • In rural areas, 95 percent of the population will be within 3 miles of a post office. • For each postcode district (for example SW1), 95 percent of the population within the district will be within 6 miles of a post office. It is suggested that in applying these criteria, the Programme aims to select branches for closure that will have the least impact on communities. Clearly the individual closures will affect local residents however Post Office Ltd (POL) believes that the new network will leave them in a similar position to other residents in the area, i.e. within one mile or three miles of their nearest post office. POL also considers the profitability of branches although this is a matter of some confusion as certain post offices marked for closure (including ones in Rotherham) state that they are in fact making a profit. The confusion in part stems from differing definitions of profitability; a post office might support a sub-postmaster but make a loss to POL once overheads are taken into account. Sub-postmasters’ income from providing post office services depends on their transaction volumes, and many depend on additional income from a retail business on the same premises. The situation in Rotherham During the last round of closures in 2004 at a meeting of Rotherham’s Performance and Scrutiny Overview Committee elected members criticised POL for not carrying out effective consultation with the communities facing closure of their local post office. In contrast, as part of the Network Change programme, POL is required to engage with local authorities. thIn April 2008, POL contacted RMBC to request a meeting, which took place on 6 May 2008. However at that stage it was not known if any closures would be proposed in Rotherham. th On 5 August 2008 Post Office Ltd announced the post offices in the area that have been selected for closure and began a period of consultation. POL have extended 3 the consultation period from the usual 6 weeks to 7 to take account of the summer holiday period. Within the “South Yorkshire with Huddersfield, Colne Valley and North Derbyshire” Area, 66 post offices have been identified for closure, including six in the Rotherham borough. These are: 1. Salisbury Road Post Office, 66a Salisbury Road, Maltby, Rotherham S66 7EZ (Maltby ward) 2. St Ann's Post Office, 45 St Ann's Road, Rotherham S65 1PF (Boston Castle ward) 3. Toll Bar Post Office, 500 Wortley Road, Rotherham S61 1JJ (Keppel ward) 4. Whinney Hill Post Office, 14 Old Gate Lane, Thrybergh, Rotherham S65 4JT (Valley ward) 5. Parkgate Post Office, 96 Broad Street, Parkgate, Rotherham S62 6EN (Rawmarsh West ward) 6. Harley Post Office, 11 Harley Road, Harley, Rotherham S62 7UD (Hoober ward) The Strategic Director for Environment and Development Services at RMBC has provided information regarding planning applications which could have an impact on the post office provision in the affected communities. This information is included in Appendix 1 along with demographic information for the catchment area of each of the six post offices. The postmasters and postmistresses of the affected branches are concerned about the provision of services for their customers and the impact of closure on the local community, but there is a feeling amongst many of them that, despite the ‘consultation’ period, Post Office Ltd’s proposal is final and that there is little chance of reversing the decision. One postmaster spoke of a colleague in London who had collected 10,000 signatures supporting the branch but it still closed. Their comments are included in the information at Appendix 1. The six Post Offices listed for closure in Rotherhamth have been invited to send a representative to attend this meeting of PSOC on 12 September. nd It is understood that following the consultation period which ends on Monday 22 September 2008, POL will consider feedback received and make a final decision regarding closures. The Council has until this date to provide an official response to POL. The response will incorporate knowledge about the local communities, views of the postmasters/mistresses of the affected branches and views fedth in by local residents. According to POL’s Area Plan Proposal released on 5 August, no changes will be implemented before November 2008. 4 Impact on the Community The Council recognises the important role that post offices often play in the local community, not Just via the provision of counter services but also as a social hub, especially for older people. Other businesses also often benefit from being located close to a post office and therefore post office closures can also impact negatively on the surrounding local shops. As well as the economic impact on the community, closure of a post office can lead to an impression of further isolation and abandonment in already deprived communities. Vulnerable groups including older people, people with poor health, benefit-claimants and those living in rural or deprived urban areas tend to have a greater reliance on the services provided by the post office. As part of its Community Leadership role, the Council is keen to ensure that if the proposed closures go ahead, residents are able to access post office services from another location with minimal inconvenience. This is of particular importance for the more vulnerable groups who may be less able to travel to another branch. th Since learning about the proposed closures on 5 August, the Council has been keen to provide an opportunity for local residents who might be affected by the closures to haveth their say.
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