16/09/2004

Rural Post Offices to receive further funding

A new government support package worth £300million has been allocated for rural post offices from 2006-2008 it was announced today.

The current three year funding initiative which runs until 2006 aims to enable Post Office Ltd to continue to meet the cost of maintaining the non-commercial part of the rural post office network. It also places strong emphasis on pilot activities geared towards finding new ways of delivering services in rural areas.

Today's announcement will provide much needed extra time to process the lessons that will emerge from pilots over the next 12-18 months. According to reports communities are already embracing the challenge and have pulled together to put forward proposals.

Trade and Industry Secretary Patricia Hewitt MP said that the government was fully committed to ensuring that rural communities have access to post office services. "This new money will also give Post Office Ltd time to develop and test new ways to meet the changing needs of its customers," she said.

"Sub Postmasters will continue to benefit both directly and indirectly from this support. Without it, Post Office Ltd would not be able to afford to continue to make the fixed payments on which sub-postmasters depend, and would not be able to supply them with the backup and support that they require."

(mmcg/mb)


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