Published: Saturday, 22nd November, 2008 9:30am

Reid gives his stamp of approval for PO u-turn

by Steve McElroy

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A VICTORY for people power!

That"s how a Government U-turn over the Post Office card account has been described.

The decision, which follows massive protests from the public, means that older people will continue to collect their pensions in cash over the counter at post offices.

Alan Reid, MP for Argyll and Bute, and Helensburgh Councillor James Robb both welcomed the move which will save 3,000 post offices across the country.

Mr Reid campaigned vigorously to stop the Government"s controversial proposal.

Work and Pensions Secretary James Purnell confirmed last week that post offices will keep the contract.

Mr Reid said this represented a massive victory for thousands of pensioners in Argyll and Bute.

He said: 'Nearly two thousand people in Argyll and Bute wrote to me protesting at the threat to the Post Office card account and I am delighted that the Government have responded by reissuing the Post Office with this crucial business.

'This is a victory for all the people in Argyll and Bute who have been campaigning to keep the account with the Post Office, and shows that local campaigning really does work.

'The new card account contract is a lifeline worth around one billion pounds to the Post Office network which will help maintain this valuable and unique community service.

'However, the fact remains that many more post offices will continue to close as a direct consequence of this Government"s policy of removing services, such as paying the TV licence, from post offices. I will keep up my campaign to persuade the Government to give more business to our post offices.'

Councillor Robb said the decision "is a victory for people who have campaigned vigorously". He added: 'I am glad to hear that common sense has prevailed and the Westminster Government has finally recognised the importance of the Post Office Card Account in ensuring a viable future for Post Offices.

'In our rural areas in particular, such as Argyll and Bute, the local Post Office is vital in securing fragile economies and communities. I, my colleagues and many others have campaigned long and hard for this and hope it is not just a blip in the UK Government"s strategy of dismantling this public service network.

'At times like these the importance of a strong Scottish Government defending the interests of Scotland and its people becomes even more apparent.'