Mark Kleinman is Sky News’ City Editor and the man who gets the Square Mile talking in his weekly City AM column

Radical Post Office reform has mutual interest 

Talk about a pregnant pause: it’s nine months since I reported that ministers had asked the consulting firm BCG to explore options for transferring the Post Office into mutual ownership – a move that would offer long-suffering sub-postmasters a genuine say in the future of Britain’s largest retail network.

This week, we finally got the government green paper putting some – albeit limited – flesh on the bones of that plan.

According to the document, which is subject to a 12-week consultation period ending in October, this review of the Post Office’s size, services and ownership and governance arrangements is crucial. The branch managers who were victims of the worst miscarriage of justice in recent British history would no doubt agree.

The Horizon IT scandal is not in and of itself reason to rip up the current arrangements and hand ownership to sub-postmasters in a preening display of government largesse.

The Post Office’s continued reliance on government subsidy to survive, along with undoubtedly difficult decisions about whether the current network of 11,500 branches provide reasons for pause – their critical social and economic role mean the government will need to retain a fundamental voice in its future.

Nevertheless, there seems little reason for Whitehall to permanently exercise full ownership of a company which finally has a leadership team worthy of the label.

BCG’s report to ministers has not been published, but I would be surprised if it had not highlighted the hybrid option of a large collective stake being handed to sub-postmasters, with government continuing to own a large stake which could be sold down over time, subject to a golden share or other appropriate safeguards.

“Post Offices continue to be a central part of our high streets and communities across the country,” the Post Office minister Gareth Thomas said this week. “However, after 15 years without a proper review, and in the aftermath of the Horizon scandal, it’s clear we need a fresh vision for its future.”

If that vision really is to be “fresh” continuing with the status quo of a full state ownership which has become corrupted beyond repair is no longer viable – for any of the Post Office’s stakeholders.

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