Minister sets out a mutual future for the Post Office
The proposals are in a 바카라 사이트 consultation, 바카라 사이트楤uilding a Mutual Post Office,바카라 사이트� published today setting out options to move the Post Office바카라 사이트�
The proposals are in a 바카라 사이트 consultation, 바카라 사이트�Building a Mutual Post Office,바카라 사이트� published today setting out options to move the Post Office from 바카라 사이트 ownership to a mutual model.
Postal Affairs Minister Edward Davey said:
바카라 사이트淭he Post Office sits at the heart of our communities and I am determined to make sure that it becomes a successful and profitable business.
바카라 사이트淲ith this in mind we want to explore how those with an interest in the Post Office could be given a real say in how it is run.
바카라 사이트淭he consultation, Building a Mutual Post Office, published today, sets out the different options for how we might enable subpostmasters, employees, post office customers and local communities, to have a real stake in the future of the Post Office.바카라 사이트�
바카라 사이트淐ombined with our major investment programme and Post Office바카라 사이트檚 ambition to become the 바카라 사이트楩ront Office for 바카라 사이트바카라 사이트�, a mutualised Post Office could help link a new commercial focus with an even stronger community purpose.
바카라 사이트淭hat바카라 사이트檚 why I really want everyone with an opinion on the future of the Post Office network to tell us what they think of our proposals.바카라 사이트�
The consultation builds on a detailed and independent report for 바카라 사이트 led by Co-operatives UK. Published in May this year, their report was positively received by Post Office바카라 사이트檚 stakeholders.
The 바카라 사이트 believes that Post Office Ltd could be ideally suited to a mutual model, with those that know it best working together, giving them a greater say in how the business is run, as well as a stake in its success.
Changing Post Office Ltd - the national company which sets the strategy for the post office network and operates some of the larger branches - to a mutual would not affect the ownership of the thousands of privately-owned post office branches up and down the country.
A move to a mutual would not of course be possible until the business is on a more financially sustainable footing. The 바카라 사이트 has committed to provide 拢1.34 billion of funding to the post office network over the spending review period to modernise the network and safeguard its future.
바카라 사이트 believes that the Post Office could be on a clear path to mutualisation by the end of this Parliament.
Notes to editors:
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The consultation document can be found here:
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The consultation document sets out the following key issues:
- The current structure of Post Office Ltd and its business strategy.
- Why 바카라 사이트 thinks mutualisation could be a good idea for Post Office Ltd.
- Our belief that the members of the mutual should comprise an equal mix of 바카라 사이트榩roducers바카라 사이트� (such as employees and subpostmasters) and 바카라 사이트榗onsumers바카라 사이트�, with no one constituency having an overall majority.
- Why we believe that a Post Office mutual could work best without a 바카라 사이트 ownership stake, to provide a clear cultural break from the past, with 바카라 사이트 able to continue to maintain its relationship with the mutual on a contractual basis.
- Our proposal that a possible structure for a Post Office mutual could be a three tier structure, comprising of the membership, a representative body, and Board of Directors.
- Other considerations which we need to take into account before a move to a mutual would be possible, the most important of which is Post Office Ltd바카라 사이트檚 financial stability.
- The Postal Services Act 2011 allows for (but does not require) the mutualisation of Post Office Ltd. Three conditions set out in section 7 of the Act must be met by a 바카라 사이트榬elevant mutual바카라 사이트� in order for the Post Office to be transferred:
- Condition A (section 7(2)) is that the main purpose for which the body exists is to act for the public benefit, and to do so by promoting the public use of Post Office services.
- Condition B (section 7(3)) is that the members of the body are a) people who have an interest in the public use of Post Office services (including employees and subpostmasters); or b) people who act on behalf of, or represent, those people.
- Condition C (section 7 (4)) is that the body makes arrangements to prevent disposals of property or rights by Post Office Ltd if they would be inconsistent with the purpose for which the body exists.
- The Act also ensures (in section 4 (5)) that no disposal of a mutual바카라 사이트檚 interest in Post Office Ltd may be made other than to another relevant mutual, the Secretary of State or a company wholly owned by the Crown.
- The Act also ensures (in section 5 (2)) that before any disposal to a mutual is made, a report must be laid before Parliament containing details of the proposed transfer. Parliament will then need to approve the report and the disposal.
- Current ownership model:**
- Post Office Ltd is 100 percent owned by the 바카라 사이트, through the Royal Mail group of companies. 바카라 사이트 owns 100% of a top holding company, called Royal Mail Holdings plc. Royal Mail Holdings plc does not trade itself but it owns 100% of Royal Mail Group Ltd. Royal Mail Group Ltd is the national letter delivery business we are all familiar with, which is responsible for ensuring the provision of a universal postal service across the UK.
- Around 370 Post Office branches are directly managed by the central holding company Post Office Ltd. These are called Crown Offices.
- The remaining branches across the 11,500 branch network are managed on an agency basis either by subpostmasters or franchise partners. Franchise partners include Tesco, SPAR and Londis.
- Although a nominated person the 바카라 사이트渟ubpostmaster바카라 사이트� makes the application and provides the business plan - branches have a variety of different ownership structures.
- Individual retail entrepreneurs run the greatest number of branches - however, it is estimated that around 1000 individual Post Offices are run by either a mutual body or a member of a mutual body.
- This includes approximately 525 Post Offices in Co-op branches, approximately 200 in Costcutter stores, 240 in NISA stores and 150 in community run shops.
- Subpostmasters are not Post Office Limited employees, but instead have a contract with Post Office Limited to provide services using their own premises and staff. Generally, subpostmasters receive a fixed payment from POL; this is topped up by a variable payment based on the number of transactions they carry out. Most subpostmasters run their post office business under the same roof as another retail business. In urban areas this is often a newsagent or stationery business. In rural areas it is typically a village shop.
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The Co-operatives UK report can be found here:
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Possible future mutual model recommended by Co-operatives UK in their report:
- An outline of what the structure suggested by Co-operatives UK would look like is below:
- A mutual body - for example a company or co-operative - would be set up and those with an interest in the Post Office could become its members. The 바카라 사이트 would then transfer ownership of Post Office Ltd to that body.
- Members, via a representative body, could then have a say in appointing the Board of Post Office Ltd, agreeing its long-term strategy and sharing in its profits.
- The 바카라 사이트 would ensure there are clear safeguards in the constitution of that mutual body, protecting the interests of the Post Office. For example, the mutual would have to act for the public benefit by promoting the use by the public of Post Office services (rather than short-term profit-taking). And it would not be able to sell its shares in Post Office Ltd. These protections would be set down in legislation. Further legislation would also be required for any demutualisation.**
- All of the experts on mutual ownership the 바카라 사이트 has consulted have stressed that, for a mutual to work, all interested parties need to agree on the structure adopted. The structure must develop organically rather than be imposed by a 바카라 사이트渃ommand and control바카라 사이트� central 바카라 사이트. So 바카라 사이트 will hold a full public consultation before agreeing any final structure for the Post Office mutual. **
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Co-operatives UK works to promote, develop and unite co-operative enterprises. It has a unique role as a trade association for co-operatives and its campaigns for co-operation, such as Co-operatives Fortnight bring together all those with a passion and interest in co-operative action. For more details see **
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BIS바카라 사이트� online newsroom contains the latest press notices, speeches, as well as video and images for download. It also features an up to date list of BIS press office contacts. See for more information.**
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The consultation will close on 12th December 2011. The 바카라 사이트 plans to issue its response to the consultation in Spring 2012.**
Notes to Editors
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