THE Post Bank Coalition will today outline its proposals for a new, state-run bank to be created, which would be run through the Post Office network.
Suggestions put forward by the group in its report include turning Northern Rock into such an institution or buying out the Bank of Ireland's stake in Post Office Financial Services.
The coalition is made up of the Communication Workers Union, the
Federation of Small Businesses (FSB) and the National Pensioners Convention, as well as a number of small, supporting organisations.
It argues that such a bank would "revive and protect" the Post Office network and would introduce diversity into the retail banking system.
The Post Office currently offers branded financial services products through a joint venture with Bank of Ireland.
Other options put forward by the coalition include incorporating National Savings and Investments into the Post Office and setting up a mutual bank.
John Wright, national chairman of the FSB, said: "The government must choose between short-term profit and securing the long-term future of financial services at the Post Office by establishing a trusted and non-profit making bank run through the post office network.
"This would address the need for finance for viable small firms, and introduce diversity into the retail banking system, as well as protect the post office network."
The coalition is backed by a number of politicians, including former acting Liberal Democrat leader Vince Cable.
The full article contains 244 words and appears in The Scotsman newspaper.
