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Post Office 'ideally suited to mutual model'
Tue 20 Sep 2011
Running the Post Office via a mutual model has been put forward as a good option by the government.
Postal affairs minister Edward Davey recently set out his plans for the institution, which he claimed "sits at the heart of our communities".
He went on to detail plans to allow those interested in participating to have a say in how the Post Office is administered.
In the Building a Mutual Post Office consultation, a range of different options were set out, which aim to get employees, subpostmasters and customers involved in running the institution.
Mr Davey claimed that this initiative, combined with the coalition's "major investment programme" could help develop a mutualised Post Office that could link commercial focus with "community purpose".
The government plans to pump £1.35 billion into the body over the spending review period to "modernise the network and safeguard its future".
However, a recent report from trade association Co-operatives UK suggested mutualisation is not something that can be "imposed by the government" and would need community support to succeed.
Simon Randall, a consultant at Winckworth Sherwood Solicitors, commented: "The coalition government have placed great emphasis on the key role mutuals and cooperatives can take in the running of public services.
"In particular the Localism Bill contains the important Right to Challenge, which will permit local authority employees to bid to run their own service through a cooperative.
"There are a number of hurdles for those employees but an enabling authority should encourage those enthusiastic staff and provide them with assistance as they approach the process.
"Winckworth Sherwood has produced a unique guide for local authorities and their employees interested in exploring this option, which has been circulated to a number of authorities."
For further information on any of the points raised in this article please contact Joanna Bussell in our Local Government Team.
