Three sub-post offices are to be shut down in a bid to make the service more cost effective.

At a press conference this afternoon, Acting Premier Michael Dunkley said the three branches — at St. David’s, Harrington Sound and Somerset Bridge — will close from November 1, saving Government around $75,000. The Minister stressed that the cuts will not result in job losses or a reduction in service.

Mr Dunkley said developments in communications, such as e-mail and instant messaging via social media, the business conditions for the running of the Post Office had become “increasingly challenging”.

And he pointed to the recent findings of the SAGE Commission, which concluded that the Post Office was “a costly example of the consequences of not implementing change”.

According to Mr Dunkley, just 208 of 683 post office boxes at the St David’s facility are rented.

“As the SAGE Commission observed, ‘it is clear that the Post Office’s current business model is no longer sustainable’,” he said.

“This means that it is prudent to examine the business model and to develop ways to increase efficiencies and realise new opportunities to increase revenue,” the Minister said.

“This Government remains determined to make all aspects of the Public Service more efficient and to do so in a manner that preserves jobs while providing best value for the taxpayer’s dollar.”

Mr Dunkley said the need for reform had been recognised by both political parties, noting that the former administration had set up a Management Consulting Services Section to examine how the service could be made more efficient.

“The study conducted by this section identified three sub-post offices for closure,” Mr Dunkley said.

“The criteria supporting this recommendation included the amount of use/customer traffic, the impact on the BPO’s overall mandate, and the current sub-post office’s operating costs and revenue.

“In closing these three sites no jobs will be lost. While some staff will be transferred to other areas into vacant posts, I wish to assure residents that home delivery of mail in these areas will continue.”

Mr Dunkley said that Government had met with union representatives and affected staff to discuss the changes this morning.

“The immediate savings resulting from these closures will be about $75,000; however, as part of the closure plan, the Government is considering options including the sale, lease or alternate use of the sites, each of which would realise further savings or additional revenue,” he added.

“Additionally, the Post Office will communicate directly with affected residents regarding their post boxes and at-home delivery and every effort will be taken to make a seamless transition to different mail delivery and collection.

“In closing, let me assure the people of Bermuda that this Government is committed to finding the right balance between the efficient delivery of public services and the economies needed to sustain them now and into the future.”