JOBS will be lost and members of the public are shocked at the news a community post office is to be demolished and taken over by a private company.

The Post Office Ltd confirmed yesterday that new management will take over the Thornaby branch, at Appleby House, next month.

Aspire u Limited, a company which runs other post offices, will open a new spacious branch, with longer opening hours.

It is scheduled to open in the new shopping centre in spring next year. In the meantime, it will operate out of the present post office building

Dozens of residents were appalled at the decision to privatise the branch, which will force out loyal employees who have been there for years. The new company cannot meet their present terms and conditions.

Ward councillor Steve Walmsley, part of the steering group backing the town centre development, said: "We were all shocked when we were told that current contracts would not be renewed.

"Being part of the steering group, I was delighted that a developer had been found and the redevelopment work was to start.

"There were no questions over how secure the post office jobs were - then we challenged the company at a public meeting.

"They were completely embarrassed, and couldn't respond. It's all down to the Government's obsession with privatisation, but good people are losing out."

The new branch will be located within the proposed new development off Mitchell Avenue.

Network service manager Paul Patterson said: "As a result of the proposed redevelopment in Thornaby town centre, we decided to review our services in this part of the town. A partnership with Aspire u Limited will help us safeguard the long-term future of these services.

"This change will also provide a number of customer benefits, in particular when the branch relocates to a unit in the new shopping centre, which is about 150 yards from the existing branch."

As well as longer opening hours, the branch will offer a wide range of stationery.

Mr Patterson said he had reviewed all the points raised during the public consultation, but believed that franchising the branch would safeguard post office services in the town "for years to come".

He added: "Collectively, branches within our directly managed network make a loss.

"While we continue to develop and introduce new services and products to help us remain competitive, we must reduce our on-going overhead costs.