Banking on Post Office services

The government's decision to end the Post Office card in 2010, jeopardising the survival of thousands of post offices (Report, January 19), is not surprising to those of us who monitor the issues closely. The card has been too successful and is eating into the Treasury's budgeted savings from the benefits switch to direct payment. What is inexcusable is that before this became known the government had not devised ways of meeting the social and business needs of all the parties adversely affected: vulnerable individuals and communities, as well as the sub-postmasters and Post Office Limited.

A major obstacle to post offices doing more transaction work for the high street banks - 65% of personal bank accounts are not PO accessible - is the Post Office's decision to compete nationally with the banking sector in the sale of branded financial products such as credit cards and personal loans.

The government should encourage the banks to develop a neutral shared banking franchise which could be made available to retailers in rural and deprived urban communities and sit alongside a postal services franchise without the offending products. There are shared banking precedents in the US and the technology is available here.
Derek French
Campaign for Community Banking Services

On Wednesday you report concern over the weakening of neighbourhood and community ties. Yesterday you report that thousands of post offices are likely to be shut. Is anyone joining up the thinking in Whitehall?
Don Mathew
Bangor, Gwynedd