Submit Workplace: subsequent authorities urged to think about transferring possession to operators

Britain’s subsequent authorities has been urged to arrange a taskforce to discover the longer term for the state-owned Post Office together with mutualisation – as soon as victims of the Horizon IT scandal have been financially compensated.

The Post Office Horizon IT scandal has been described by MPs as one of many greatest miscarriages of justice lately and was highlighted by the latest ITV drama Mr Bates vs the Post Office.

The UK authorities faces the prospect of paying out multimillion-pound sums to compensate tons of of publish workplace operators who had been wrongly prosecuted by the Submit Workplace and misplaced cash as a result of the Horizon IT system wrongly confirmed monetary shortfalls at their branches. A judge-led public inquiry is now looking for out what went incorrect.

Nevertheless, there are rising questions in regards to the longer-term way forward for the government-owned Submit Workplace with its 11,500 branches throughout the UK which reported a £76m loss for the 12 months ended March 2023, down from £130m within the earlier 12 months. It has 5,200 publish places of work in rural areas that present important providers equivalent to banking to communities the place banks have closed their branches.

Nigel Railton, the Submit Workplace chair, not too long ago launched a strategic overview wanting on the sustainability of the enterprise and its future. “As a part of this work we’re in search of the views of serving postmasters and different stakeholders with an curiosity in Submit Workplace’s position in communities throughout the nation,” the Submit Workplace stated.

Earlier this 12 months, Voice of the Postmaster, which represents about 900 operators, the Communication Employees Union (CWU), which represents Submit Workplace staff, and Co-operatives UK met Kevin Hollinrake, the then Submit Workplace minister, to speak about mutualisation which might result in the possession transferring from the state to employees.

Rose Marley, the chief government of Co-operatives UK, the commerce physique for the UK’s 7,000 impartial co-operative companies, believes the following authorities ought to critically discover the practicalities of mutual choices for the Submit Workplace – as soon as victims have obtained monetary compensation.

She stated: “We perceive that the Submit Workplace community is complicated, but when postmasters had loved a real stake and a say in how the Submit Workplace operates, it’s fairly clear we wouldn’t be on this mess.

“Proof additionally exhibits that employee and employee-owned companies are extra productive, whereas community-based co-operatives are extra resilient and sustainable as nicely, so it needs to be checked out.”

Richard Trinder, the chair of Voice of the Postmaster, stated a proposed taskforce might have a look at the crucial challenges confronted by Submit Workplace and increase the scope of mutualisation to incorporate not solely publish workplace operators and the communities they serve, but additionally study points equivalent to long-term monetary liabilities, IT legacy and a revised enterprise mannequin.

Trinder stated: “There needs to be a course of for redressing victims of the scandal and we’ve to get the federal government to contribute after which depart the Submit Workplace clear for an enormous restructuring.”

Andy Furey, the assistant secretary of the CWU, stated: “We help the idea of mutualisation as we’ve up to now. Nevertheless, earlier than any mutualisation can begin then we want a brand new working mannequin and all key stakeholders have to play a major half in operating the corporate. The present administration can’t stay in place and there must be vital funding.”

The Nationwide Federation of SubPostmasters (NFSP), which additionally represents Submit Workplace operators, believes there needs to be an oversight committee which might work with the federal government: “Whereas mutualisation is the last word aim of the NFSP, with out the monetary help of presidency, the Submit Workplace merely wouldn’t survive and would lead to hundreds of postmasters shedding their funding.

“What’s extra vital is the governance of the Submit Workplace, which is considerably chargeable for the failures across the Horizon scandal. That is why the NFSP is proposing an oversight committee to work with the federal government because the shareholder, PO because the operator and postmasters as traders within the community. Because the PO has a social goal, this oversight committee ought to embody client champions.”

In 2012, the then coalition authorities pledged to look at whether or not the Submit Workplace might grow to be a multi-stakeholder mutual that gave membership to publish workplace operators and their prospects, however no additional motion was taken.

Labour’s election manifesto has pledged to “discover methods to strengthen the Submit Workplace community”, in session with publish workplace operators, commerce unions and prospects, and help the event of latest enterprise fashions, equivalent to banking hubs, that may assist reinvigorate the excessive road.

The Liberal Democrats say they might encourage publish places of work to grow to be group banking and authorities hubs. The Conservatives say of their manifesto that the Submit Workplace ought to stay a “priceless social and financial asset” and delivering that aim “requires a change of tradition on the high”. All the principle events have promised to make sure compensation for the victims of the scandal.

Rose Marley, the boss of Co-operatives UK, stated: “The compensation is an absolute No 1 precedence and rightly so and I believe no matter political occasion will get in energy … doing proper by these postmasters is one thing the general public wish to see.”