Local MP Katy Clark has welcomed proposals from the Post Bank Coalition for the establishment of a new Post Bank. The proposals from the Coalition, which includes the Federation of Small Businesses, the Communications Workers Union and Unite the Union, would create a new state-run bank run by the Post Office Network. One of the key functions of the Bank would be to support small businesses by providing small loans or basic bank accounts. It is estimated that if established a Post Bank could create up to 11,000 jobs.
Speaking on the subject, the Member for North Ayrshire and Arran said, “These proposals will provide real help for people and small businesses in these difficult times by providing stability at a time of uncertainty. The establishment of a Post Bank would benefit people on low incomes. Even before the credit crunch around three million people did not have even basic bank accounts, pensioners being among the most marginalised. The introduction of a Post Bank would give these people the opportunity to earn interest on their savings and help ensure that they are not forced to turn to unscrupulous lenders, pawnbrokers and loan sharks. I am very optimistic about the effect that a Post Bank could have on small businesses in North Ayrshire and Arran by providing loans and assistance which at present the major banks appear unable to offer”
“Despite a Government subsidy of £1.7bn intended to maintain 11,500 post office branches we need to do more to help our post office network. A Post Bank will not only provide investment and stability for the Post Office Network but will create new jobs and allow people access to their savings in a way not possible previously.”
The Local MP has signed Early Day Motion 1082 which commends the proposed plans for the establishment of a Post Bank run by Post Office Limited and calls on the Government to take action to put the proposals into practice.