Agenda item

A member of the National Consultation Team is anticipated to attend the meeting to discuss the proposed management change of the South Harrow Post Office branch.

Jackie IIesley, Head of Area, Simon Stoer, External Relations and Wayne Cowan, Network Development Manager of Post Office Ltd, attended the meeting to discuss the proposed changes to the Post Office at South Harrow. 

Members were informed by Jackie IIesley that a franchisee had expressed interest in entering into a partnership with Post Office Ltd in managing the South Harrow branch, and Post Office Ltd were allowing a two month feedback period so that members of the public were able to voice any concerns or issues they might have regarding the franchise partnership.

Benefits of the partnership were described to be: longer opening times on Saturday; a new bright, modern open plan Post Office, and a wider range of cards, stationery and gifts.  It was also mentioned that the franchisee had intentions to utilise the space at the top of the Post Office and planning permission would be sought to extend the shop space.

Members were assured that the eight counter positions would be maintained.  Six tills would be open plan, one fortress style and one combination.  Members discussed the changes to the Edgware branch since its operation as a franchise.  A number of concerns were raised related to circulation space within the shop.  The Chair advised that elderly users had said that they did not feel as safe making financial transactions.  Jackie Ilesley advised that in the Post Office Ltd’s experience, removing screens led to a lower incidence of security issues.

It was emphasised that the franchise partnership would enable the Post Office to continue to serve customers in its traditional way but at a viable level.  Members were made aware that Post Office Ltd faced severe financial pressures as a result of falling customer numbers and increased running costs.  It was also emphasised that the Government supported franchise partnerships.

Wayne Cowan mentioned that there had been some negative press in a local paper regarding the franchisee and the proposed management change.  Members were advised of the process involved in establishing a franchise partnership, which consisted of a series of intensive programmes designed to ensure partners met the standard and expectation of Post Office Ltd, which had been done in this instance.  Post Office Ltd was therefore happy with the franchisee’s proposals and was convinced the business would work.

It was mentioned that the initial franchise partnership would be for a seven-year period and providing Post Office Ltd had no concerns, the partner could continue or terminate the partnership after that time.  The franchisee could not sell or relocate without Post Office Ltd’s permission.  If the Post Office Ltd had concerns, there was scope within the contract for the Post Office Ltd to take charge.  It was also stated that throughout the partnership Post Office Ltd would monitor the business partnership and train new staff for the Post Office. It was stressed that existing Post Office staff at South Harrow branch were not pressurised to take redundancy and were offered the opportunity to relocate to other branches.

During discussion Members expressed the following concerns over the franchise partnership:

·            The letter of 24^th December addressed to the Chief Executive focussed upon franchisee rather than the quality of services that would be continued or compromised, which should be Post Office Ltd’s primary focus, and that letter did not contain enough information to enable them to answer the concerns of their constituents;

·            Important to maintain a post office service on the site;

·            It would have been helpful to have a case study of Post Offices that had undergone franchise partnership to illustrate the advantages and disadvantages for staff and community;

·            The level of Post Office experience of the proposed franchisee; and

·            That the new open plan Post Office may present security issues for staff and customers, particularly elderly citizens and when talking about confidential business and making financial transactions.

In response to Members concerns Wayne Cowan re-emphasised the extensive planning that had already gone into the franchisee’s business plan.  It was felt that if planning permission was not granted the franchisee had a good contingency plan to attain Post Office Ltd’s interest.  In relation to experience, it was stated that the franchisee had a good business background and that his wife had retail experience that would prove useful in the partnership.

Simon Stoer explained the objective of Network Re-Invention that was mentioned by a Member, and admitted that there would be Post Offices closures across the London network.  This was due to the problems already identified and the fact that benefits that form 40% of Post Offices workload would be paid into people’s bank accounts, so closures were likely but, it was thought that South Harrow would not be apart of those closures if the franchise partnership went ahead.  Members noted that a meeting with Post Office Ltd, Harrow’s MPs and Council would be carried out later on in the year to discuss that issue.

A Member asked why Post Office Ltd did not try to attract further franchise partnerships for other Post Offices rather than closing them.  Jackie IIesley responded by saying there were too many Post Offices that were the wrong size and in the wrong location, which was not attractive to investors.

Members asked what local residents of South Harrow felt about the proposed management change.  Jackie IIesley responded by saying there were two drop-in sessions for public to attend and ask questions in January ‘04, approximately 50 people attended across the two days. It was indicated that explanations were given about the change and plans were shown highlighting the new layout, it was felt that the majority of the people who attended those sessions supported the change.

Members questioned whether staff had been fully informed of what Post Office Ltd was planning.  Jackie IIesley responded by saying she had met with staff of the branch in December so they were aware of what was happening; it was also highlighted that unions were involved representing staff interests.

RESOLVED:  That (1) a letter be sent to full Council and relevant Ward Councillors to create more awareness of the proposed management change; and

(2) the concerns expressed by Members be forwarded to the Chief Planning Officer for incorporation into the Council’s response to Post Office Ltd.