Lib Dems warn of new Government threat to Post Offices.

7.00.00am GMT Tue 11th Nov 2008

South Suffolk Lib Dem Parliamentary campaigner Nigel Bennett calls on MP's to back Post Offices to deliver services.

The Labour Government has put out a contract to tender for handling state pensions and benefits. Often known as the Card Account, Royal Mail wants to keep the contract but is facing competition from Paypoint and a major bank.

The National Federation of Sub-postmasters predicts a further 3,000 closures if the contract is lost.

Nigel Bennett said, "We have already seen 2,500 closures nationally and including several closures in South Suffolk. Millions of people visit Post Offices primarily to draw their pension or other benefits and then they spend some of that money there."

"The Labour Government has made a short sighted decision to go out to tender. It is more concerned with the losses the network make than the social benefits that Post Offices bring and these are often essential in villages for the maintenance of the village shop too."

"Further closures could have an adverse impact on the sustainability of more rural communities," warned Nigel Bennett.