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Council looking to buy out failing post offices

08/03/2008

Essex council is looking to takeover loss-making post offices that are set to close as they are unprofitable, according to reports.

The government has previously announced that 2,500 branches across the country would be shut down in order to limit losses made by inefficient post offices.

Essex council is now interested in taking over the failing units in a scheme which has been approved by postal affairs minister Pat McFadden, according to the BBC.

Under the plan, the council is expected to purchase up to 15 branches and turn them into profitable ventures. Council leader Lord Hanningfield told the BBC that he was in favour of the move which he described as "groundbreaking".

He said: "There is a huge amount of work still to do and we will now be conducting our own assessment on the merits and financial viability of each post office, together with the needs of the communities that they serve.

"Because of this, it is too early to mention specific branches at this stage," he added.

Mr Hanningfield ruled out government subsidies being replaced by local financial assistance.

The postal affairs minister said he was in favour of the move and would encourage negotiations between the post office and Essex council in this regard.

"If they are serious about it and are willing to put money in and they want to be answerable to their local council tax payers for that decision, then I would encourage the Post Office to talk to them about that seriously," he explained.