Councillor: We can bank at the post office

Jul 9 2008 By Neil Elkes

BIRMINGHAM City Council’s £3 billion bank account should be handed to the Post Office in a bid to halt branch closures, a councillor said.

City housing boss John Lines made his call for the local authority to switch accounts as he backed a council motion denouncing the threatened axing of 26 city branches.

The Tory chief also pledged to offer rent rebates to branches based in council owned shopping parades in Druid’s Heath, Kings Norton, Ward End, Harborne, Northfield and Hall Green if it keeps them open.

Coun Lines (Bartley Green) said: “They are the catalyst for local economies, to close them would cause other shops to fail.

“We will offer them financial assistance if it keeps them open.”

“If it were Northern Rock, the Government would offer billions to bail them out.”

He added that the city bank account, which sees about £3 billion of business, is up for renewal and that they would invite the Post Office to tender for it.

His colleague, Cabinet member for regeneration Coun Neville Summerfield described the closures as “unforgivable community barbarism”.

Coun Summerfield (Con, Brandwood) said: “The Post Office has been undermined by an unholy alliance of the Government, the big banks and Royal Mail.”

He explained the Post Office was weakened by the switching of benefits and bill payments to direct debit through High Street banks.

His motion that the Council denounces the Government’s closure programme was approved.

Labour leader Sir Albert Bore had tabled an unsuccessful amendment, praising Government subsidies to the Post Office and recognising the social cost of closure to neighbourhoods.

He said that society had changed with e-mail, internet payments and that the Post Office must change to offset £3.5 million of losses every week.

“Post Office Ltd has made mistakes and I suspect it is in the process of making more mistakes. We have to ensure there is a sustainable network which meets the needs of our communities.”

Coun Roger Harmer (Lib Dem, Acocks Green) questioned the Post Office’s default position of closure.

“They should be looking for inventive solutions, turning them into local drop in centres, with a range of expanded services such as cafes.”

Coun Deirdre Alden (Con, Edgbaston) praised the Birmingham Mail’s petition and urged the public to attend Monday’s public meeting in the council chamber..