The Government will allow the Post Office to keep the Post Office Card Account contract until at least 2015.
The contract had previously been put out to tender, risking the loss of 3,000 Post Offices if a private firm won the contract.
To cheers in the House of Commons, Work and Pensions Secretary James Purnell announced that the bidding process had been closed, saying, “Now cannot be the time for the government to do anything to put that network at risk.”
Mr Purnell stated that private company Paypoint would be compensated for the cost of bidding for the contract, insisting, “It is a good deal for taxpayers. It means a better service for customers but it also means a deal which is right for customers and taxpayers in general.”
See BBC News.
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7 Comments
Let’s be clear – this is a U-turn and egg on face moment for Labour.
Especially after this weeks opposition day!
I was under the impression that EU regulations on state funding required that the POCA be put out to tender. Am I wrong?
@Paul Griffiths – certainly Alistair Darling’s DTI gave that impression, e.g. (14/12/06, p.21): “the EU procurement rules leave us with no option but to tender competitively for this product”; (17/05/07, p.3): “The Government will tender for this service in accordance with EU rules”.
And apparently still the Government line a fortnight ago, when Ann McKechin (a minister at the Scotland Office) said “we are awaiting … the tender process, which is required under EU law” (29/10/08, c.878).
The Irish Government won the case for giving their version of the Card Accound after it was challenged in the European Court. The Government never had to go to tender! What a waste of money and if Paypoint is to be compensated for their costs why not the Post Office as well? The Government has really fouled up!
I am sure I am not the only person who sees
the fingerprints of Mandy on this !
At last the gov has someone who knows when to stop digging themselves a new hole.
In this case its for the good. I wait to see him starting to undermine environmental policies that are unpopular but necessary for our future.