Post Office could be given away to STAFF in historic shake-up after Horizon IT scandal

THE Post Office could be handed over to thousands of sub-postmasters in an historic shake-up as its future hangs in the balance following the Horizon IT scandal.

Government ministers are exploring plans to transfer ownership to employees, similar to the model used by the John Lewis Partnership.

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It is based on the idea that its workers are each part-owners of the company and receive a share of annual profits.

The Department for Business and Trade (DBT) has asked management consultancy firm BCG to examine options for mutualising the Post Office.

Still in its early stages, a report is expected to be handed to Business Secretary Jonathan Reynolds in the coming months.

The 364-year-old institution is wholly owned by the state and is Britain’s biggest retail network, with roughly 11,500 branches.

But Whitehall insiders admitted it’s in a lot of trouble and is only financially viable because of an annual subsidy it receives from the government.

A government source told The Sun on Sunday that they are currently looking at “all options” for its future after sub-postmasters’ relationship with management was irrevocably damaged following the scandal.

They are investigating other funding models and whether various government services could be operated out of its branches.

In April, Kevin Hollinrake, former Tory minister responsible for postal affairs, met trade union officials and representatives of the co-operative movement to discuss the possibility of mutualising it.

It’s understood that no decisions have yet been made, and any change of ownership could be a lengthy and complicated process.

Gareth Thomas, the minister who currently oversees the Post Office, and Business Secretary Mr Reynolds, may be asked about the BCG project next month when they’re expected to give evidence to the public inquiry into the Horizon IT scandal.

Calls for a review of the company’s ownership model have grown amid rising public anger at the wrongful conviction of hundreds of sub-postmasters.

Highlighted by the ITV drama Mr Bates vs The Post Office, it has been labelled Britain’s biggest miscarriage of justice after they were accused of stealing cash from their branches.

Many had their lives destroyed, were imprisoned, and some even passed away or committed suicide before finally being exonerated.

Former sub-postmaster Sir Alan Bates, who tirelessly campaigned for justice, is still to agree a compensation settlement and has called on the government to consider suing former directors of the company.

The institution is also facing internal governance woes after Chairman Henry Staunton was sacked in January by former Business Secretary Kemi Badenoch over alleged serious failings.

As part of their efforts to repair the Post Office’s battered finances and reputation, the government has parachuted in Nigel Railton, a former boss of National Lottery operator Camelot, as its chairman.

One of Mr Railton’s first major tasks is to find a new chief executive, after Mr Nick Read confirmed last month that he was leaving.

After meeting Mr Hollinrake in April, Andy Furey, a national officer at the CWU Union, said: “There has to be a totally new operating model for the Post Office going forward to remain relevant for society.

“The people on the frontline delivering the service to communities on a daily basis deserve a much bigger say in the running of the Post Office.”

Q&A: What it means and how it could work

WHAT would mutualisation of the Post Office mean?

A transfer of ownership to a mutual body — such as a cooperative or company and allowing its members to have a say in how it is run.

Who would the members of such a cooperative body be?

They could include sub-postmasters, employees and customers.

What active role would they have in running the business?

They would share in its profits and also appoint a board of directors.

What are the chances of handing over Post Office ownership for this restructure?

Any restructure process is likely to be the subject of public consultation.

What is to stop members selling off shares for a quick and easy profit if it goes through?

Safeguarding would be put in place to ensure that the Post Office acts in the public interest and prevents shares from being sold off.

What happens to the Government subsidies which are currently enjoyed by the Post Office?

Mutualisation could mean the loss of any subsidies from the Government.

Is there any potential downside to a mutualisation of the Post Office?

The National Federation of SubPostmasters warned in February this year that any mutualisation of the Post Office “too soon” could bankrupt the corporation.