Post Office closures.

Taken from the UKIP website

Lost in the post?

14-12-2006
The government was accused today of covering up the true reason why thousands of British post offices have been, or will be, closed.
In spite of all their explanations, they have not revealed the true reason behind the closures.

"The plain truth is that the scandal of these closures is directly because of a ruling from the European Commission.

UK Independence Party leader Nigel Farage added, "Three years ago, this government signed away the Royal Mail's ability to conduct its own financial affairs."

The deal struck in 2003 allowed the government to provide £150 million a year to the post office, which has been extended by another three years. However, the costs of subsidising the service cost £4 million a week, which means a £58 million deficit every year.

"The three years is up and now we are having to live with the consequences. Yet the government still refuses to admit this is the real reason. Perhaps their explanation got lost in the post?"

Nigel Farage, leader of the UK Independence Party said, "Why should we have to go to Brussels to beg permission to fund a service which is important to so many local communities; especially in rural areas? In spite of Alastair Darling declaring investment of £1.7 billion, he will still have to ask permission from the EU to do this.

"Thanks to the EU, the profitable services have been 'cherry-picked' whilst the small and rural post offices will get cut or axed.

"It's about time we stamped on the power of the European Union if we are going to address the problems facing postal services: they have consistently failed to deliver."

Treaty of Amsterdam , Article 88 demands that a national government seeks permission from the Commission to grant state aid.

EU Directive 2002/39/EC requires permission before any state aid can be granted.

The Postal Services Directive 2002/39/EC reduced the part of the postal market which could be reserved for the national monopoly

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