RURAL areas in the region will suffer if plans to break up the postal monopoly go ahead, it has been warned.

The Country Land and Business Association (CLA) believes uncertainty about the efficiency of postal services will discourage businesses from relocating into rural areas.

The CLA claims one of the keys to regeneration of rural areas is bringing business into the countryside.

Antony Haslam, regional director of the CLA, said: "Competition may improve the service for large business customers in urban areas, but it will do nothing to help those in the countryside.

"We have just had a major report into food and farming and that emphasised the need to bring business into the countryside to revive the rural economy. The Government must, therefore, ensure an efficient postal service for those working and living in the countryside."

With more landowners and farmers diversifying, the trend for more businesses relocating to the countryside is likely to continue, said Mr Haslam.

But, he asked: "How many firms in the future will wish to relocate to the countryside if they cannot be certain of an efficient postal service?

"The Government must ensure, whatever the outcome of deregulation, there remains a guaranteed postal delivery to rural areas which is daily, timely, and at the same price as the rest of the country."