Post Office Network

Debate between Drew Hendry and John Lamont

Thursday 25th April 2019 Westminster Hall

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

It is a pleasure to serve under your chairmanship, Dame Cheryl. I congratulate my hon. Friend the Member for Motherwell and Wishaw (Marion Fellows) on securing this debate on a matter that is critical for many communities in Scotland and the other nations of the UK. She talked about the respect for, and recognition of, post offices. Few things upset communities more than a post office closure. She also pointed out the folly of the Tory Government’s non-intervention policy, and the parlous state of sub-postmasters, following the cuts that they have had to endure to their livelihoods.

My hon. Friend rightly mentioned that it is good news that there is a new banking transaction deal, but why the six-month wait? There is no good reason for that. It should happen now. She talked about the consequences of poor pay, and the 1,016 temporarily closed branches, 134 of which—some 13%—are in Scotland. She talked about the effect of Crown branch closures, and the failure of the franchising system to recognise unions, which others mentioned, too.

The hon. Member for Berwickshire, Roxburgh and Selkirk (John Lamont) talked about his worried constituents and the desire to protect the network. It is a telling figure that one in five sub-postmasters is considering closing or reducing their services. His speech was good up to then—until he said, as is usual for the Tories, that he wants the Scottish Government to pick up after the failure of the Westminster Tory Government, without the powers or levers to be able to do so.

[John Lamont]

My point was that powers are available to the Scottish Government to support the provision of financial services through the post office network—a point that the Library has just confirmed. There are opportunities available to the Scottish Government to provide additional assistance beyond what the UK Government can provide, because post offices are a reserved matter. There are levers and powers available to the Scottish Government, if they choose to use them.

[Drew Hendry]

I do not intend to go too far off track, but I must respond. It is absolutely typical of the Tories to say that we have to fix every mess and failure at the expense of the Scottish public and services in Scotland. That is a ridiculous proposition.

Returning to the core debate, there was enormous consensus among hon Members. My hon. Friend the Member for North Ayrshire and Arran (Patricia Gibson) pointed out that businesses across communities lose money if post offices close. She said that people are cynical about the politics of the Westminster Government, who make no commitment to post offices and then wring their hands at the consequences. She talked about hand-counting thousands daily, and everything that involves. She talked about the post office being the last place for face-to-face contact in communities. It is more than just a commercial entity, and older and more vulnerable people are the most affected by closures.

It is telling that Later Life Ambitions, a pensioners’ organisation, points out that the post office is important in day-to-day life, because older people, who are often the most vulnerable people in society, rely on post offices. They are a lifeline; they offer access to pensions and benefits, and let people pay bills, get advice and even socialise. Does the Minister acknowledge that this is a social issue, too? For those who do not or cannot communicate digitally, post offices are very important. They are used by 42% of consumers over 65, and 31% of disabled consumers.

The hon. Member for Coatbridge, Chryston and Bellshill (Hugh Gaffney) talked about working with my hon. Friend the Member for Motherwell and Wishaw, and about post offices needing to be run in the interests of people. That is absolutely correct. In talking about franchising policy, he highlighted that WHSmith has been voted worst retailer. It is notable that the jobs it advertises are particularly low-paying.

In a very telling speech that hit home with me as a fellow MP representing a rural community in the highlands and islands, my hon. Friend the Member for Argyll and Bute (Brendan O’Hara) shared concerns that post offices are being run down and prepared for privatisation. He talked about the catastrophic effect that can have on rural communities, particularly in the highlands and islands, where often there are huge distances between the services that people rely on. My hon. Friend talked about the stability policy of the UK Government; Argyll and Bute has lost 20% of its post offices, with six post office closures in the last two years. The drastically reduced funding has put post offices in a very vulnerable place, and the public have no faith in the UK Government protecting rural post office services. He was also right to point out the success of Cairndow, and to congratulate those people on taking matters positively into their own hands to try to do something for their communities.

My hon. Friend the Member for Paisley and Renfrewshire North (Gavin Newlands) talked about the transaction charges, and so he should, because his work should be commended. I congratulate him on forcing action, not only through his Adjournment debate, but through continued pressure and engagement. He talked about the impact of the systemic degradation of services in towns and villages and, importantly, the issue of community designation. It is a good thing to have community designation, but the problem is that rural and semi-rural post offices are losing out, while cities can gain. The criteria are too black and white, especially the three-mile rule.

The hon. Member for Glasgow North East (Mr Sweeney) talked about the unsustainable model imposed on the post office network, and shared his concerns about franchising. When there are bank closures in our communities, we have all been told, “Don’t worry; the post office network will pick up the slack.” He also talked about the toxic conditions for the people who run post offices, many of whom got into the job because they thought it was a great thing to do for their communities, a proper career and a valued position in the community. My goodness, how they have been let down by how they have been treated. He predicted a massive failure over the next five years if there is no action.

[Philip Davies in the Chair]

Post offices are not just business; they are focal points for many communities. This issue is about communities and their health and wellbeing, as well as the national and local economic impact. For many, the shiniest jewel in the crown has been prised out and cut up for the profit of those who do not rely on or even need a post office. In 2017, Citizens Advice found that people valued their community post office more than a local pub, a bank branch or a library. Does the Minister acknowledge that importance? In rural areas, 36% of businesses use post offices at least weekly, and 62% of small businesses use them at least once a month. Over 500,000 businesses are registered in rural areas—that is one in four companies—and they contribute more than £200 billion to the economy. These people are creatives and innovators who use post offices to send goods and pay bills. According to Citizens Advice, eight out of 10 of them will lose money if local post offices are closed. Will the Minister take notice of that?

We in the SNP—and others, as we have heard—are clear that we want our Post Office to remain robust, and to serve our businesses and communities, but that is not a priority under the UK Government’s management. Consequently, the Government should devolve power to us to ensure that the Post Office is protected. Under the current policy, there has been a mass exodus of postmasters, often leaving communities branchless. My hon. Friend the Member for Motherwell and Wishaw should be commended for arguing for fair hourly rates for postmasters, but the Minister must undertake to commission independent analysis and answer the big questions about fairness.

As we have heard, pay levels are leading to a major exodus of postmasters. Rather than watch the Post Office crumble, the UK Government should support postmasters and ensure fair remuneration. As was pointed out, the publicly owned Post Office’s North Star initiative is aiming for a £100 million profit by 2021. That is all very good, but postmasters’ pay has declined by £107 million since 2012. The majority of postmasters now earn less than the minimum wage. In many cases, they cannot even get out; their businesses are now too unattractive to sell.

The National Federation of SubPostmasters has raised the issue of sub-post office closures with the UK Government and the Government-owned Post Office Ltd. The federation’s spokesperson said:

“Our records show around two-thirds of closures are due to the resignation of the sub-postmaster— and a survey of our members conducted earlier this year gives an insight into why sub-postmasters are resigning. Income is dropping over time, the majority earn less than the national minimum wage for running their post office—and therefore earn less per hour than their staff—and as many as a third took no time off last year.

We agree with Marion Fellows that Scotland has been hit hard by sub-post office closures. This is a particular problem for rural areas in Scotland, as well as across the UK, where people rely on their local post office for vital postal and banking services.”

Action on transaction charges is welcome, but why wait? Why not give the same rates to local branches and main post offices? Around 90% of post offices in the highlands and islands are local branches, not main post offices. Will the Minister challenge that with the Post Office? As my hon. Friend the Member for Motherwell and Wishaw pointed out, there must be a vision for the post bank, and it should be properly funded.

There is more pressure on post offices than ever, given the loss of local banks through short-sighted closures by the Royal Bank of Scotland, Halifax Bank of Scotland and others. Now we find that TSB is starting the process of shortening hours, which is always the cynical first move in reducing a branch’s viability to the point where its closure can be justified. As we heard, all those banks say, “It’s okay, you can use the post office,” but we cannot if they have gone.

Even where post offices remain, Robert Cockburn, a constituent of mine who runs the post office in Drumnadrochit, says the workload is absolutely punishing. He often has to run his business as a single-manned operation, so while he goes behind the screen for the time it takes to deal with a transaction, he loses out on custom from people who come to his business and might have bought goods to help sustain him.

Scottish Economy

Debate between Drew Hendry and John Lamont

Wednesday 27th June 2018 Westminster Hall

[Drew Hendry]

I disagree, and so do many businesses that I interact with in the highlands on a daily basis.

Production efficiency in the oil sector has risen for the fifth consecutive year, reaching 74% in 2017, demonstrating sustained efficiency improvements and maximising the economic recovery. Oil & Gas UK’s “Business Outlook for 2018” shows growth in investment and a further 5% increase in the forecast production for that year. Recent industry announcements about BP’s successful working discoveries in the Capercaillie and Achmelvich wells and Shell’s redevelopment of the Penguins field demonstrate the investment potential that the UK fields still hold. Over the next decade our oil and gas sector can capitalise on the decommissioning market, which is forecast to reach £17 billion; but that is only if the right decisions on investment are made.

[John Lamont]

The hon. Gentleman points out the challenges for the oil and gas sector, but on Monday when the Scottish Affairs Committee was taking evidence on the sector in Aberdeen, we heard people saying they wanted fracking to be expanded in Scotland. Does he support the industry in making that call?

[Drew Hendry]

I certainly do not support fracking. I do not believe that a country as rich in natural resources and renewable energy as we are—and indeed one with the oil and gas industry that we have at the moment—needs to go for fracking. I absolutely support the ban on fracking in Scotland. [Hon. Members: “There is no ban!”] There is a ban in Scotland. As to an effective ban, a court ruled in the past week that that is the case: fracking cannot go ahead in Scotland under the current situation.

Pubs Code 2016

Debate between Drew Hendry and John Lamont

Wednesday 24th January 2018 Westminster Hall

[Drew Hendry]

I intend to cover that point, and will answer it fully in a moment or two.

I congratulate the new Minister for pubs on his remit. If he listens today and is able to make the required changes, I am sure many people will raise a glass to toast his appointment. It is pleasing to be able to agree for a change with the hon. Member for Berwickshire, Roxburgh and Selkirk (John Lamont). It is a rare occurrence. He mentioned a private Member’s Bill in Scotland—I will return to that—and rightly said that the pub landscape in Scotland is different from that in England and Wales. He mentioned the importance of pubs in the community, and again I agree. In areas where pubs are successful, they make a vibrant offering to the economy. He also mentioned Burns. As he will be aware

“gude ale comes and gude ale goes”—

wise words indeed. The hon. Member for Strangford (Jim Shannon) made an important point about who audits the auditors, which the Minister should address. He also made a point about community.

On the private Member’s Bill, there is cross-party support in Scotland for looking into a statutory code, and to back that up the Scottish Government commissioned a study to look at various pub models. Work on that is ongoing, but it is looking at whether pubs in the tied sector are more unfairly treated than those in other sectors. The conclusion of the initial investigation was that, as I said earlier, it is difficult to compare the market in England and Wales with that in Scotland, because they are so different due to Scotland’s independent free trade model. The Scottish Government are currently looking into whether such legislation is required, and I understand that discussions have been continuing right up to the minute about how to take that forward.

Since the Minister for pubs is here, I wish to underline that pubs need support. In Scotland, the SNP Government are working closely with public bodies and the industry to support jobs, infrastructure and the hospitality sector. Interestingly, the introduction of minimum unit pricing, which targets very cheap alcohol, could help the pub economy in Scotland because it will prevent people from buying cheap drinks in supermarkets, and allow them to spend more time in the controlled environment of a pub. The alcohol minimum pricing is set at 50p a unit. The chief executive officer of the Scottish Licensed Trade Association, Paul Waterson, has said:

“Cheap priced alcohol has turned Scotland into a nation of stay-at-home drinkers. Some 72% of total alcohol sales in Scotland are off-sales; 80% of this total, is sold by supermarkets. When people drink in uncontrolled environments, alcohol-related problems increase significantly.”

The brewing and pub industry in my constituency has had considerable success. Cairngorm brewery is nearby, as is the Black Isle brewery. The oldest bar in Inverness is Gellions, which was formed in 1841, and the Best Bar None awards have just declared through their best bar scheme that 22 venues in Inverness have won awards for outstanding efforts in helping to create a safer environment for the public. Will the Minister look into the small business bonus that has operated successfully in Scotland? Two out of five pubs now pay zero or reduced rates thanks to that bonus, which helps their viability.

[John Lamont]

Does the hon. Gentleman recognise that, because of the reforms to business rates introduced by the Scottish Government, many pubs, including many in my constituency, have seen their business rates go through the roof? The basis on which rates are now calculated means that many businesses are paying much more than they were under the previous regime, yet they are not seeing any additional income and many pubs now face closure.

[Drew Hendry]

The hon. Gentleman is trying to make a point. He will also be aware that the Scottish Government have acted to restrict the increase in rates for the hospitality trade, and put measures in place to ensure that pubs and other small hotels and businesses are not disproportionately affected.

In conclusion, the Minister has an opportunity to make a big difference to the pub industry and I hope he will listen to the points raised by hon. Members about the situation in England and Wales. I also hope that he will consider other measures to support the licensed trade, and ensure that the pubs in our communities are viable.