The Post Office is to lose 'back office' income worth over ?310,000 per year.

The move was confirmed in the House of Keys today by Infrastructure Minister Phil Gawne and relates to vehicle and driver licensing services. He said there would be no impact on customers who would still be able to access the services in the post office or online.

Mr Gawne said: 'However, the back office facility is, we believe, expensive and the functions could be provided by the licensing section of the department with fewer staff and at a lower cost. As a result of the stretching financial targets placed on the department, we must continue to explore every opportunity to reduce our operating costs. As a result, the department has stated the intention to take the back office administration work back in house as it has concluded that this will be in the best interests of the taxpayer.'

It's expected the services will be transferred by April 2016, with the Post Office continuing to receive a fee for accepting applications over the counter.

Mr Gawne said: 'This service represents only a part of the overall role of the Post Office and the way it provides services to Government and the wider community. The Council of Ministers is keen to review the position of the Post Office to give clarity to the future of this important institution and the role it should play in delivering services to our people.'

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