Post Office bank will not be viable

The government has ruled out creating a Post Office bank because it would be time consuming and expensive.

Edward Davey, minister for postal affairs, revealed last week that at a time when public finances are under huge strain the government believes its funding would be better spent modernising and maintaining the network.

He adds that the Post Office will not be for sale and there will be no closures.

The government is keen for the Post Office to expand further into financial services. This will include offering new products through its relationship with the Bank of Ireland and looking into ways that the Post Office and Credit Unions can work more closely together.

Davey says: “Our long-term goal is to convert the Post Office into a mutual structure, for example, like the Co-operative Group, giving em-ployees, sub-postmasters and communities a much greater say in how the company is run.

“Our programme means the net-ork is on the cusp of an exciting new era.”