A ST HELENS sub-postmaster who is a leading figure in his regional federation has given a qualified welcome to government plans for the future of post offices.

Brian McMahon, Regional Secretary of the National Federation of Sub-postmasters, has welcomed the Performance and Innovations Unit (PIU) report and the statement made by the Secretary of State for Trade and Industry, Stephen Byers, for the modernisation of the post office system.

Government plans to rationalise the sub post offices beyond the year 2003 caused a furore earlier this year with many local sub-postmasters opposing the proposed changes.

But following the publication of the PIU report, Brian, sub-postmaster at Vincent Street post office, St Helens, said: "The report is a first-class analysis of the post office network and is an excellent foundation upon which to start building the new network of sub post offices. That network will have at its heart a post office-based solution which is a genuine alternative to paying pensions and allowances through banks and building societies. This is an excellent step forward and we will work with the Government and the Post Office to deliver it. "It is, however, only the first step towards creating the post offices of the future and we continue to have concerns about the income to sub-postmasters and therefore the survival of sub post offices beyond 2003. We want to ensure that proper support, including funding, will be available so that sub-postmasters and their customers can look forward to a much brighter future.

"We will be pressing the Government to ensure that the recommendations in this report have their full support. The federation remains committed to a re-invented network where people have a real choice.

"Thanks must go to the people of St Helens who have supported their local sub post offices by signing our petition earlier this year. Without their support we wouldn't be in this position today." St Helens North MP, Dave Watts, said: "The proposals will prevent all avoidable closures of post offices in the next six years with a fund set aside to maintain and develop post offices in these areas. This is good news for St Helens and shows this Government's commitment to a thriving modern post office.

"Labour recognises the important role the post office plays in the community, that is why we are investing £500 million in computerising the post office network. Post offices will then be able to develop new lines of business, including offering banking services. The package will ensure that pensioners and benefit claimants will be able to continue to receive their money in full, in cash at the post office when the Benefits Agency switches to ACT."