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'77 POs face closure'
ANOTHER 77 post offices could face the axe in Sheffield if the Post Office loses a crucial £200 million government contract, The Star has been told.
The city could be left with just 19 post office counters if the Post Office Card Account - which processes millions of pension and benefit payments - is awarded to a rival bidder, according to a senior Labour MP.
Concerns are mounting that the contract operated by the Post Office on behalf of the Royal Mail - a major source of income for most branches - will be handed to PayPoint, which operates out of corner shops, off-licences and garage forecourts.
An announcement had been expected by the Government in the summer but has been repeatedly delayed.
Now Lindsay Hoyle MP, a member of the influential Commons business and enterprise select committee, has spoken of his fears that a decision has already been taken to strip the Post Office of its POCA contract.
He believes that either the entire contract will be handed to PayPoint, or there will be a deal fixed which allows both PayPoint and the Post Office to both handle POCA work.
Mr Hoyle said: "POCA is absolutely crucial. I think they will come up with a fixed deal so shops can tender for services. They will say it's all about customer choice. I think they have lost the tender and they are just trying to juggle it."
Asked what the impact of handing the entire to POCA contract to PayPoint would be, he added: "Eighty per cent of post office counters would close."
He stressed Post Office shops may survive, but the core postal counter services would die out in mostb branches.
The Post Office is already axing 15 branches across Sheffield, although the council is in talks to take on nine. That will leave a Royal Mail-run network of 96 branches in the city.
If the Royal Mail loses the POCA contract - and Mr Hoyle's predictions come true - the network would be reduced to just 19 Sheffield branches.
Mr Hoyle added: "I have deep concerns that it is taking so long. What is the issue? What is the problem? We have to get work for the Post Office.
"That will not happen until we can persuade the BBC that people should be able to buy their TV licences at post offices. Or maybe every terminal for National Lottery has to be operated in the Post Office? The Government has to be creative."
Sheffield Council Liberal Democrat leader Paul Scriven agreed the loss of POCA would have a devastating effect on the city's surviving branches.
He said: "I think the Govern-ment's plan to possibly take away the POCA would decimate the network in the UK and inevitably here in Sheffield."
A Royal Mail spokesman said: "POCA is out to tender at present so it would be inappropriate for us to comment as we are awaiting an announcement from government."
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Weather for Sheffield
Saturday 26 May 2012
Today
Sunny
Temperature: 9 C to 21 C
Wind Speed: 18 mph
Wind direction: East
Tomorrow
Sunny
Temperature: 11 C to 21 C
Wind Speed: 14 mph
Wind direction: East
