THE SUBPOSTMASTER - JUNE ISSUE

90% reduction in cost.
“Some of that saving has to come to
the post office. That’s part of our
Banking Framework 4 negotiations,
but banks will push back hard. We will
be expecting banks to support and
pay for automation to enhance post
offices, in terms of security
automation particularly.
“We’re also looking at mails and
parcels automation and how that will
play a part.
“And NBIT, we anticipate that we will
reduce our operating costs both in
branch and in the centre by anything
up to 50% by introducing a system
that’s going to genuinely and
dramatically reduce the processing
time and cost time associated with
running a branch.
“That’s a core part of the way
forward and we have to embrace it. It
is your single biggest cost, and we
need to make sure that we make it as
simple and as uncomplex as possible.”
STRATEGIC REVIEW
Nick Read: “We’ve had a new
appointment of a PO Chair (Nigel
Railton) and he is very keen to do a
strategic review of the business.
“It’s very evident that we will have a
new administration of some
description in the next six to eight
months or so.
“With that will come a new funding
investment in PO and at the same
time we will conclude the Inquiry, so
there is a real necessity to do a
strategic review.
“As it stands today, I am contracted,
and I am instructed by statute to have
11,500 branches across the network.
That’s not going to change any time
soon until we have some form of
consultation or some change of
statute.
“We shouldn’t expect today to have
a different size and shape of network.
What we are doing is trying to make
sure that we meet demand within the
context of 11,500 branches.”
GOVERNMENT SERVICES
Kevin Hollinrake: “We recognise that
not everybody wants to shop online.
But the reality is consumer habits are
changing with the rise of Amazon. It’s
not us who are allowing Amazon to
deliver parcels to your home, that’s
what people choose to do and we as a
government won’t stand in the way of
that.
“We’ve got to try to find a future for
the high street with the opportunities
that do exist. But the reality is things
have changed, and I get my fishing
licence online now.
“There are opportunities around
banking services and parcels. There
are physical interactions that some
consumers still do need.
“But we can’t dictate to consumers
where they purchase these services.”
Calum Greenhow: “Consumer habits
are changing but it’s also being
directed by chief executives and
shareholders who are looking to
reduce their costs so they can increase
their profit.
“Back in 2005, income to
government from post office services
was £596m. Today it’s £20m to £30m.
We’ve lost over half a billion pounds.
“Online is getting harder and more
frustrating. A post office brings social
interaction. People have to leave their
home, go out into the fresh air and
speak to someone, so post offices
have massive physical and mental
health benefits on that basis.”
FUTURE OF THE NETWORK
Calum Greenhow: “There is a
phenomenal trust in postmasters, and
a phenomenal understanding from
the general public as to what you’ve
experienced.
“But there needs to be a
fundamental change in the whole
structure so that the general public
and you as postmasters can have
confidence about your businesses.
“Would any of you tell any of your
friends to invest in a post office? That’s
what we need to change.
“If we can change that so you’re
shouting out that PO is a fantastic
brand to be involved in, a fantastic
company to be with, then people are
going to want to come into that
business.”
You can watch the full Your
Questions segment on the NFSP
YouTube channel.
Don’t get caught up
with counterfeits!
The Safescan 155-S accurately verifies all your banknotes,
even those featuring King Charles III. The perfect counterfeit
detector to protect your business.
Great NFSP
price of £ 76.30*
Simply place your order by going to www.safescan.com/nfsp using your computer (not mobile device).
*Plus £8.95 shipping costs and 20% VAT charge. You can only order one unit of each device with your FAD code and unique email address.
June 2024 The SubPostmaster 17