BITING market forces could see underused urban post offices close across Cumbria with rural POs opening up in schools, pubs and shops, reports Rachel Kitchen.

Cumbria County Council heard how the Internet boom, new banking habits and direct debit had all put the squeeze on post office core business leading to a massive programme of planned urban branch closures across the country.

The three-year rolling closure programme dubbed the Network Reinvention plan - will see 3,000 of the nation's 9,000 post offices serving a population of over 10,000 closed and Cumbria will have to take its share.

It comes as post office bosses decided to close Kendal's Beast Banks PO on June 19 as part of the scheme.

The PO launched a consultation about the future of the branch on Greenside after subpostmaster Mike Molloy expressed a wish to close it because of falling customer numbers and increased running costs. PO head of area Eddie Herbert said the main concerns expressed were the effect of closure on elderly customers, and the convenience of other branches, but he believed closure was the right course of action.

Mr Molloy, who now plans to convert the PO into a living room, said: "We have some lovely customers around us here. It's a real shame but unfortunately we can't survive nowadays on the trade we are getting."

Postman Pat author John Cunliffe, who used to live on Greenside and visited Beast Banks PO when writing his children's books, told the Gazette he was sorry to hear of the closure, adding: "I think it will be very much missed."

Rural offices are not part of the closure programme. But PO representatives said they had been talking to CCC about new ideas including using post offices as mini libraries.

A CCC report said ideas for rural POs in Cumbria included putting PO facilities into village pubs, schools, shops and garages and also boosting Royal Mail trade by introducing library services and using them to collect parking fines.

PO rural transfer advisor Ian Liley said: "Sub postmasters are sometimes looking at new ways of supporting their business. It is about having an open mind, about finding potential solutions. But nothing has been decided yet, these things are very much still ideas."

In a special presentation from the PO, CCC cabinet heard the service had lost £163 million last year. "It is a survival strategy," said Lorraine Whitehead, head of external relations North West for the Royal Mail Group Plc.

"Too many Post Offices are chasing too little businesspost offices play a vital role but like any small business they have to adapt to change. We felt a programme of managed closures would give us long-term stability."

However, grants of between £5,000 and £10,000 will be available for some subpostmasters who wish to invest and expand their businesses.

May 23, 2003 09:30