The government announced this week that the tendering process for the operation of the card account, used by four million people across the UK, had been cancelled, and that the Post Office would run the account until at least 2015.

Carol Harding, who bought the Rothesay post office in Watergate with her husband Richard during the summer, was not surprisingly delighted at the news.

"We are really, really pleased," she told us, "because the card makes up a large part of our business.

"Now we can look forward to developing our service to the people of Bute - it gives us a platform to build on."

The announcement has resulted in a rare display of cross-party unity between Argyll and Bute's Holyrood MSP, the SNP's Jim Mather, and the area's Westminster MP, Alan Reid of the Liberal Democrats.

Speaking after the announcement was made Mr Reid, who has campaigned for the retention of the card, said: "Nearly two thousand people wrote to me protesting at the government's threat to the Post Office Card Account and I am delighted that the government have responded by reissuing the Post Office with the card account.

"This announcement is a victory for all the people in Argyll and Bute who have been campaigning to keep the card account with the Post Office, and shows that local campaigning really does work."

Mr Mather also praised members of the public for voicing their deep concern over the issue.

"It is far from clear why we should have had to endure months of delay and confusion," he said, "but the announcement marks a step change in what I hope is realisation at last from the Labour government that the Post Office network is an invaluable asset in both rural and urban situations, providing lifeline services.

"The sooner that the social value of the network is fully recognised the better. That this decision has been achieved by concerted cross-party action in the face of government dithering and uncertainty is beyond dispute."

The card accounts for one in four visits to post offices, rising to one in two in rural areas, and is regarded as a lifeline by workers in the industry.

It is a simple account that can only be used to receive benefits, state pensions and tax credit payments.

See also:

New faces at Bute post offices - Nov 5, 2008
All change for Bute's post offices - The Buteman, Feb 21, 2008