Post office on rack over cash machines

POST Office executives will be called before the influential Treasury Select Committee next month to account for controversial cash machine charges.

The Post Office bosses have been summoned after complaints about the number of machines charging fees in its branches. About 1,000 impose charges, making it the largest fee-based network within an individual financial institution. Stephen Timms, Financial Secretary to the Treasury, will also give evidence to the committee.

The Post Office is also involved in a spat with the Association of Convenience Stores, which has 32,000 members. One in three of the association's members operates a sub-post office.

Association spokesman James Lowman confirmed that it had recently complained to the Office of Fair Trading about the Post Office's contracts with retailers.

These contracts also cover the operation of cash machines. The association maintains that retailers who previously offered free cash machine facilities are forced to impose charges when they open sub-post offices. The charges are then paid to the Post Office.

Lowman said: 'We have given written evidence to the Treasury Select Committee, but there is no indication that they wish oral evidence from us.'

It will be the third Treasury Select Committee hearing on cash machine charges.

James Crosby, chief executive of HBoS, and Benny Higgins, chief executive of Royal Bank of Scotland's retail banking operations, will give evidence on February 3.

Crosby has been summoned because HBoS recently sold 800 cash machines to Cardpoint, which has since announced that 250 will levy charges.

Royal Bank has acquired Hanco, a large provider of fee-charging cash machines. Hanco was criticised recently for operating machines in amusement arcades.