From Northern Rock to Post Bank
Posted: 07/07/09
The Post Bank Coalition has launched the first detailed proposals for delivering a Post Bank, including options like using the government-owned bank Northern Rock as the basis for a new state-backed bank in the Post Office. The report comes as MPs on the Business & Enterprise Select Committee consider the future of the Post Office.
CWU general secretary Billy Hayes said: “We have met the challenge to create a workable model for the creation of a Post Bank. Our new report builds upon the conceptual idea and provides practical blueprints that will appeal to the general public who are disillusioned with the old, tired banking model. There’s never been a better time to set up a Post Bank. In order to ensure a viable future for post offices across the UK we urge Lord Mandelson to endorse this vote-winning initiative and to urgently take the necessary steps to introduce a Post Bank.”
The Coalition’s report outlines four options the Government could follow to establish the Post Bank:
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Northern Rock: We do not need to start from scratch. Northern Rock is now in public ownership, and could form the institutional foundation of a new, mutually structured people’s bank.
Buying out Bank of Ireland: The relationship of Post Office Ltd with Bank of Ireland has, we believe, come to the end of its useful life. If the UK government is serious about securing the future of the Post Office network, then a bold decision to support a buy-out of the Bank of Ireland’s stake in Post Office Financial Services would be an extremely significant step towards doing so.
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Incorporating National Savings and Investments: National Savings and Investments (NS & I) has its origins in the Post Office Savings Bank set up in 1861. It was separated from the Post Office in 1969. It has developed a range of savings and investments over the years to suit the market and meet the needs of customers and the UK Government’s need for funding. The Post Office has remained a significant distribution channel for NS&I products.
Mutual Banking and the TSB model: Post Bank offers the prospect of capitalising on a rich but neglected history within British banking - that of mutual banks and non-profit trustee bank models such as the old TSB. These are models which should be considered in the establishment of Post Bank.
But none of these will happen unless we can show there is public support for the Post Bank - that’s why we need you sign up here: