Kirkwall Post Office in Junction Road is one of hundreds of Post Office Crown branches which may close under the company’s Transformation Plans.
There was a time in its once great history that the Post Office and Royal Mail were basically the same thing, and people today still get that confused. Elected politicians and Government decided to change that and creeping privatisation took place – where profit takes over from service and accountability.
Royal Mail and the Post Office are separate companies with independent Boards. Royal Mail is the company that delivers parcels and letters – the provider of the universal postal service. It has a delivery office in Junction Road adjacent to the Kirkwall PO. The Post Office is the nationwide network of branches offering a range of postal, Government and financial services.
Successive Conservative Governments had in the past looked into privatising the UK’s postal services but with a backlash from many of their own MPs and public disquiet these plans were watered down. Then in 2010 The Liberal Democrats went into a Coalition Government with the Conservatives and the privatisation of this once great national institution could really get underway. The Postal Services Act 2011 was passed. The Act allowed for up to 90% of Royal Mail to be privatised, with at least 10% of shares to be held by Royal Mail employees.
Then on 1st April 2012, Post Office Limited became independent of Royal Mail Group, and was reorganised to become a subsidiary of Royal Mail Holdings, with a separate management and board of directors. A 10-year inter-business agreement was signed between the two companies to allow Post Offices to continue issuing stamps and handling letters and parcels for Royal Mail. The Act also contained the option for Post Office Ltd to become a mutual organisation in the future.
Today Post Office Limited is a company owned by the UK Government. The Post Office is owned by the UK Government, through the Department for Business, Energy and Industrial Strategy (BEIS) and UK Government Investments (UKGI), however, the Post Office Ltd Board has responsibility for the operations of the Post Office.
The 9 Crown Branches in Scotland under threat of closure are:
- Edinburgh City
- Glasgow
- Haddington
- Inverness
- Kirkwall
- Saltcoats
- Springburn Way
- Stornoway
- Wester Hailes
Post Office Chair, Nigel Railton, has today (13 November) set out a five-year Transformation Plan for the Post Office which claims to deliver a ‘New Deal for Postmasters’ that significantly increases their total annual income through revenue sharing and strengthens their role in the direction of the organisation.
All of this follows on from the Horizon scandal which destroyed the lives and businesses of hundreds of sub post masters.
In his statement he said that The Post Office’s branch network size consisting of 11,500 branches will not be impacted by the Transformation Plan and the Post Office remains committed to strengthening its branch network and making it work better for local communities, independent postmasters and partners who own and operate branches.
Fiona Grahame