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Consignia’s plans to close up to 3,000 urban post offices has been challenged by the Federation of Small Businesses (FSB). The organisation is urging the postal operator to reconsider.

As part of the restructuring of its network, Consignia estimates that between 2,000 and 3,000 post offices in urban areas will close. While Gerald Godby, Utilities Chairman of the FSB, accepts that "Consignia needs to restructure," he believes that closing post offices is "not the answer."

He outlined the importance of local post office branches to small businesses, as "they will bank cash, and many banks are unwilling to accept the sums of money that small firms deal with." David Bishop of the FSB predicts that the loss of a local post office would cause businesses the inconvenience in having to travel the extra distance to find the nearest post office. This would particularly affect the self-employed and very small firms, representing over 2 million of the 3.7 million SMEs in the UK.

A second, indirect cause for concern would be the drawing power of local post offices for consumers. Bishop points out that "the primary reason" for many consumers visiting areas like shopping precincts is the post office. A consequence of these outlets closing would be a loss of trade for small businesses operating in the area.

The FSB’s third major objection concerns the sub-postmasters who themselves comprise part of the small business community and who would obviously lose their livelihoods. It has been announced, however, that there will be compensation for those sub-postmasters affected.

Last week Consignia also announced its desire to raise the cost of first and second class postage by a penny. Bishop acknowledges that this would affect small businesses, but says that the FSB is placing the priority on the "the survival of urban post offices."

(15/4/02)

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