Brown Backs Post Bank

The Post Bank Coalition) celebrates backing from the Prime Minister Gordon Brown for a greater role for the Post Office in banking services in his speech to Labour Party Conference.

The Post Bank Coalition is delighted that the urgent needs of local economies, small businesses, communities, and the great national service that is Post Office have been recognised. The Prime Minister has rightly signalled out a Post Office Bank as a key component of the economic recovery through Britain's small businesses, and of help for the financially excluded and debt ridden.

The Post Bank Coalition has already offered to work with Lord Mandelson's Department on the next steps to setting up a Post Bank. The bank could and should be a reality by the end of the year and we urge the Prime Minister to instruct Whitehall to simply get on with setting up the Post Bank at the People's Post Office

Billy Hayes, Communication Workers Union general secretary, said: "The Government is responding to what the British people need. Post Bank will provide trusted banking for small businesses and communities across the country and will secure the future of post office the network for generations to come. This is a practical step in the right direction putting more emphasis on public services rather than the failed private banks."

Lindsay Mackie, campaign co-ordinator at nef (the new economics foundation) said:
"The Prime Minister has brilliantly signalled his commitment to the public realm, to the importance of local economies, local communities and the financially excluded. The Post Bank at the Post Office will be a great legacy for future generations - now we have to set it up and make it work."

Federation of Small Businesses National Chairman John Wright said: "We are pleased to see that the Government has heeded our calls to secure the future of the Post Office. The FSB has been campaigning strongly for the creation of a Post Bank which would provide an alternative source of finance for small firms and help shore up the post office network.

Today's commitment by the Prime Minister is great news for small businesses that are enormously dependent on the Post Office network for postal as well as banking services. Nearly half of small businesses visit the post office a couple of times per week where many post invoices or send out cheques.

Creating a Post Bank will not only secure the future of the post office network, but also bring about much needed diversification of the banking sector. Crucially a Post Bank will also make access to finance much easier on a local level where it is needed most by small independent businesses and the wider community."

Dot Gibson, General Secretary National Pensioners Convention, said: "Older people rely on their Post Office and a commitment to open a People's Bank in High Street branches would not only be very popular but would also safeguard the network's future. The Post Office has always been a vote-winner for pensioners, and the Prime Minister should give it his full backing.

Paul Reuter, Unite national officer, said: "Unite believes that the commitment from the Prime Minister to ensure the Post Office network is an integral part of Government strategy will only be achieved by the setting up of the People's Post Bank at the Post Office. This is the only real option in giving a clear commitment to local communities and small businesses as well as securing the Post Office network for the future."

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