EVENING Press wins battle to stop closures.

THE Evening Press today won its campaign to protect post offices, after the Government promised to prevent all avoidable closures.

Ministers unveiled a rescue package worth hundreds of millions of pounds to safeguard the future of the 18,500-strong post office network.

Economically unviable rural branches will be offered Government subsidies.

Post Office Minister Alan Johnson said: "We are not going to see any more avoidable closures in rural areas.

"We think we are opening up the dawn to a new era for the Post Office."

The rescue plan has been drawn up to stop the closure of up to 8,000 post offices.

They are set to lose income as the automated payment system for benefits and pensions is brought in by 2003.

A special fund will be set up to improve branches in deprived urban areas.

Welcoming the package, Hugh Bayley, York MP and Junior Social Security Minister, said: "It's a lifeline - but the sub-post offices will have to change to survive.

"The message to the public is simple - use your post office or lose it."

The main High Street banks and the Post Office are developing detailed proposals for the new bank.

Banks could also ask sub-post offices to act as agents for them in rural communities.

Post office staff around the city are welcoming the news of the rescue package.

Geoff Simpson, secretary of the York branch of the Federation of Sub-Postmasters, said: "This is excellent news for sub-post offices.

"It will help to alleviate the problems we are suffering.

"It offers an opportunity for members of the public who do not have a bank account and we will be able to provide a more accessible and user-friendly service than the big banks."

Others have their doubts.

Phillip Bushell, sub-postmaster at Boroughbridge Road Post Office, said: "It sounds OK in theory, but I view the proposals rather tentatively.

"Nobody is against change but we still need some guarantees to keep operating."

A Post Office spokesman said: "We welcome the proposal but it doesn't go far enough to bridge the £400m gap caused by the new pension payment arrangements.

"There is still a danger of more post office closures in the interim period while the proposals come into action."

WHAT will happen

A Universal Bank to ensure pensioners and benefit claimants can continue to get payments in cash at post offices.

Access to cheque books, cash withdrawal cards, discounts on gas and electricity bills by paying by direct debit, possibly small loans - but not overdrafts.

A smart card to access the new banking service

Sub-postmasters and mistresses will be encouraged to offer information from Whitehall departments and help to fill forms.

Branches to offer access to the Internet and act as staging posts for on-line shopping

3,000 cash machines to be installed in post offices.

All town and city post offices to become 'bigger and brighter', with thriving retail businesses.

The post office network to be fully computerised by next spring at a cost of £500 million.

Picture - WE DID IT: Phillip Bushell with an Evening Press campaign poster outside his sub-post office in Boroughbridge Road, York, this afternoon