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Monday, 29 July, 2002, 09:57 GMT 10:57 UK
Post office unveils mass closure plan
Post Office
One third of the urban network is to be closed
Four post offices are to be shut down every working day for the next three years, as mail chiefs struggle to revitalise the network.

Plans to close 3,000 urban post offices will be enacted from next year until the end of 2005, a Consignia spokesman told BBC News Online.

The closures are designed to help the Post Office division cut down on pre-tax losses which hit �163m.

Post Office chief executive David Mills said in an interview with the Financial Times: "It is my job to, on average, close four urban post offices every working day over the next three years."

'Nicer network'

The scheme will axe one-in-three urban post offices, with rural branches remaining untouched, in line with a government report which has stressed their role in supporting countryside communities.

But Mr Mills said town-dwelling customers would still be well served after the closures, which would only take place after widespread consultation.

"Ninety five per cent of the population will remain within one mile of a post office," he told the FT.

The closures are part of a �270m post office revival plan, which includes compensation for sub-postmasters closing branches, and cash to redevelop sites maintained.

Colin Baker, general secretary of the National Federation of Subpostmasters, said the programme was designed "to get a more viable, nicer network for the customers and ensuring that it is done with their agreement".

Subpostmasters whose branches are closed stand to receive the equivalent of 28 months' takings in compensation.

The restructuring has been backed by government, whose decision to pay state benefits direct to bank accounts, rather than through post offices, has been blamed in part for the network's plight.

See also:

23 Jul 02 | Scotland
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29 Jan 02 | Politics
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