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Postal Services: Rural Areas

Volume 464: debated on Tuesday 9 October 2007

To ask the Secretary of State for Business, Enterprise and Regulatory Reform what assessment he has made of the impact on the rural post office network of the decision to share the Network Subsidy Scheme with the urban post office network. (155443)

[holding answer 17 September 2007]: The proposed Network Subsidy Payments will be sufficient to underpin the whole of the non-commercial network without adverse impact on the support available for the rural part of the network. In particular, Post Office Ltd. will be making further significant savings through reductions in central costs and overheads, combined with more cost effective delivery of services and the strategically planned closure of up to 2,500 offices.