Inside Westminster: MPs fear delivery of Post Office bad news

Published on Thursday 6 November 2008 22:19

MIGHT today be a good day to bury bad news? With president-elect Obama and the result of the Glenrothes by-election sure to dominate the headlines, there was rampant speculation at Westminster that the government would take the opportunity to drive another stake into the heart of the dwindling Post Office network.

MPs have been waiting worriedly for weeks for a decision on the Post Office card account, an alternative to a bank account that allows pensioners and people receiving government benefits or tax credits to receive the cash sum over the counter at a post office.

This business effectively keeps many small post offices afloat – and keeps customers coming through their doors. A rival bidder, Paypoint, is feared to have won the card account contract from 2010. But fans of the Post Office fear this could lead to 3,000 more closures – on top of the 2,500 being seen already – and take the network below 10,000 outlets.

The matter has been raised doggedly by MPs for months, but has failed to grab the headlines. But yesterday in the Commons, temperatures were notably higher as Harriet Harman, the Leader of the House, failed to promise that MPs would hear first when James Purnell, the Work and Pensions Secretary, finally makes his decision.

Simon Hughes, a Liberal Democrat MP, led the charge, demanding an "absolute, unqualified assurance" that Mr Purnell would not sneak out the announcement today – a day the Commons is not sitting.

His party colleague, Alan Reid, who represents Argyll and Bute, wanted a "yes or no" answer from Ms Harman on whether MPs would be told first. He failed to get one.

Mr Hughes even pleaded for the Speaker, Michael Martin, to intervene by raising a point of order. But Mr Speaker said the rule was only that a minister should appear before the House "as soon as possible".

What is clear is that MPs smell a rat and believe bad news is soon to emerge. Many have long railed against the tendency of government ministers to make announcements first to a favoured newspaper or on the Today programme on Radio 4.

To add insult to injury, respecting the pre-eminence of parliament – and making the government more accountable to it – was something that Gordon Brown promised when he became Prime Minister a year and a half ago. Expect to hear howls of outrage if Mr Purnell does deliver bad news today – even if not a word is heard in the Commons.