Post Office dividend to treasury 'unsustainable' says Chairman

The £2 million dividend the Post Office must pay Treasury was introduced to help re-balance the budget.

Post Office Chairman Graham Cregeen told the House of Keys that was his understanding of why it was brought in, replacing the previous arrangement of half its profits going to Treasury annually.

Money had to be taken from Post Office reserves in the most recent financial year, as its profits were less than the dividend.

Mr Cregeen said the current arrangement was due to run until the end of the 2015/16 financial year, and imagined the post office would be looking to renegotiate after that