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Post Offices: Closures

Volume 478: debated on Thursday 26 June 2008

To ask the Secretary of State for Business, Enterprise and Regulatory Reform what advice he has received on the extent to which state aid to the Post Office is permissible under EU law. (214156)

The UK Government already compensate Post Office Ltd for the provision of Services of General Economic Interest (SGEI). The legal base for this is the Community Framework for State Aid in the form of public service compensation. The compensation enables Post Office Ltd to maintain a network beyond its optimum commercial size and provide the services required of it by the Government.

Any further public funding of individual post offices would need to be assessed on a case by case basis for its compatibility with the state aid rules.