Post office to face closure if banking contract is lost

8:37am Sunday 29th June 2008

By Eleanor Stride

THE OWNERS of a Tadley post office say their business may be forced to close if the national contract to run basic banking services at Post Office branches is lost.

Tara and Vin Patel have run the post office, in Bishopswood Road, Tadley, since 1988. As well as offering postal services and groceries, their shop allows customers to use the Post Office Card Account (POCA) which provides those without bank accounts with a way of withdrawing their benefit or pension payments from any Post Office counter in the country.

The Post Office has the contract to run the POCA until 2010, but the contract to run it thereafter will be put out to tender, to comply with EU law.

The decision on who will win it is due at the end of July.

According to The National Federation of Sub-Postmasters (NFSP), if the contract is awarded to another provider, the loss of income could force around 3,000 more Post Offices to shut.

Mrs Patel said: "If the Government does decide to take the POCA away from the Post Office, my business will have to close. People won't come in as often and won't spend so much money here.

"People trust the Post Office more than they trust banks and they like coming into a friendly place to collect their money.

"We are taking part in a campaign organised by The National Federation of Sub-Postmasters and are encouraging our customers to write to MP Sir George Young to say that they want the service to stay at the Post Office."

Sir George, MP for North West Hampshire, said: "I have received cards from residents in Tadley and the rest of my constituency on the POCA issue.

"POCA is vital for people who don't have bank accounts. I think the Government ought to be doing much more to encourage people to use Post Offices."

Sir George added: "The Post Office has a strong bid because of its existing network. I hope that it wins the contract."

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