Watchdog hires two Labour 'cronies' as Post Offices face axe

13 April 2012

Labour was at the centre of yet another cronyism row yesterday over key appointments to Britain's powerful postal watchdog.

Of three new regional chairmen at Postwatch, doubts have been raised over the fact that two are closely linked to the party.

The jobs, announced yesterday by the Department of Trade and Industry, come at a controversial time for the industry.

Just before Christmas, Labour revealed plans to axe 2,500 Post Office branches over two years.

From the summer, 32 post offices a week across Britain will hang up the 'closed' sign for ever.

The closures are opposed by Tories and Liberal Democrats.

As part of its remit to protect consumers, Postwatch would also be expected to oppose the closures in villages that it believes will suffer most.

But its independence was questioned last night over the appointment of regional chairmen Professor Alan Alexander, 62, who will represent Scotland, and Najma Hafeez, 42, in the Midlands. Postwatch said that they will have to decide whether to fight Post Office closures in their area.

As regional chairmen, they are appointed for two years, covering the entire period of the closures.

The DTI insisted that neither Professor Alexander nor Mrs Hafeez have had any close political ties over the last five years. But they have been closely linked to Labour in the past.

Mrs Hafeez, from Birmingham, was the first and youngest Asian woman to be elected as a councillor in Birmingham in 1983. She was a Labour councillor for 12 years and touted as a possible candidate for Roy Hattersley's constituency, Sparkbrook.

Professor Alexander was a Labour councillor in the Seventies and stood as a candidate in Henley-on-Thames, Oxfordshire, in the 1974 election.

The third chairman, Christina Baron, who will represent the South West, is the only one who declares an active political interest. She was a Liberal Democrat candidate in the district council election in 2003 and is Lib Dem chairman in Wells, Somerset.

The Government wants to start shutting post offices this summer, with completion due 18 months later.

Alan Duncan, Shadow Trade and Industry Secretary, said: 'Labour's bias in appointments has polluted the whole process of Government for nearly a decade. Someone needs to do a thorough study of their underhand politicisation of matters which used to be decently done.'

Susan Kramer, Lib Dem Trade and Industry spokesman, said: 'Given that so many post offices are closing despite strong public opposition, it is crucial that Postwatch is not tainted by any suspicions of cronyism.

'The public will need to know that the watchdog will be working for the public interest, and the public interest only.'

Postwatch chairman Millie Banerjee dismissed allegations of cronyism, insisting she was 'delighted' with her new chairmen.

She said: 'The Postwatch Council has 15 members. It is inevitable that some will have been active in politics at some point in their pasts.'

The new regional chairmen are paid £21,900 plus any 'appropriate allowances' for a job which typically takes up two days per week.

The DTI insisted that all appointments to Postwatch are made 'on merit'.

A spokesman said: 'Political activity plays no part in the selection process.'

Based in London, Postwatch was set up in 2001. Its aim is to 'protect, promote and develop the interests of all consumers of UK postal services.'

Alistair Darling, the Trade and Industry Secretary, is responsible for making Postwatch appointments, which are monitored by an independent panel.

His choice of two Labour 'cronies' will fuel fears that the Government is muzzling the outspoken, supposedly independent consumer watchdog.

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