Lib Dems in Cardiff North throw down challenge on Post Offices

6.13.00pm GMT Tue 11th Nov 2008

A battle has broken out in Cardiff North between Liberal Democrats and Labour after local Liberal Democrat campaigners demanded to know why Labour rejected calls to back Post Office services that help keep branches in business.

The battle started in the House of Commons on Monday 10th November after Labour MPs threw out a call for the Government to carry out more services through Post Offices.

The Government is also in the final process of deciding whether or not to take the handling of pensions and benefits away from Post Offices and give it to a private company. If the Government goes ahead with this switch, it is feared that the loss of business to Post Offices will result in up to 6,000 branches closing.

Now, Liberal Democrats in Cardiff North are calling on the local Labour party to explain why Labour threw out calls for more government business to be done through Post Offices.

"Post Offices are vital to communities in Cardiff North," said John Dixon, Lib Dem Parliamentary Spokesperson for Cardiff North. "Labour have a mean-spirited approach to the Post Office network and have gradually stripped branches of much of their business over recent years.

"Labour then went on to claim that the network has to be reduced in size due to this loss of business. Now ministers are putting pressure on pensioners and benefit claimants to have their pensions and benefits paid into bank accounts.

"All this is undermining the Post Office. The call made by Liberal Democrats in Parliament was an attempt to stop the damage Labour have done to the network and reverse the decline. Labour however voted to throw out that call. Cardiff North needs its Post Offices but we also need a Government that takes into account the needs of local people.

"We have the first of these now, but not the second. My fear is that we will soon have neither."

Liberal Democrats have called for the Post Office to be allowed to continue to pay out pensions and benefits. They have also called for £2 billion of investment in branches, paid for by selling part of the Government's shareholding in Royal Mail.

They also want more Government departments to use Post Offices to provide services, to free branches from restrictions on doing business with other parcel delivery companies and to broaden the range of commercial services available across the counter.