PLANS to introduce greater competition into the postal service could spell further trouble for farmers and rural businesses, according to the Country Land and Business Association.

The CLA is afraid that if the postal service is opened to competition, it may end in no companies wanting to service the remote rural areas at all.

John Biron, CLA south east regional director, said: "The first casualty of any postal sell-off would be those with the least profit margins - rural delivery services. The Government has continuously emphasised the need for farmers to diversify into more productive and profitable lines - and many have responded to that call.

"As a result, redundant farm buildings now host all manner of businesses including workshops, offices, mail order companies and tourist accommodation. But the struggle to diversify is compounded by the lack of the sort of business services most people would take for granted.

"To expose businesses to the possibility of a reduction in postal services will be a major disincentive to expansion. What reason will there be for the new competitors to service rural areas?

"The rural economy will be dead on its feet unless the Government guarantees a postal delivery to rural areas which is daily, timely and at the same price as the rest of the country."

His fears were supported by Roger Meacham, the North West Kent branch secretary of the Federation of Sub-Postmasters, who runs a post office in Tonbridge Road, Maidstone.

He said: "De-regulation could affect the viability of post offices not just in rural areas but everywhere. If competitors are allowed to cherry-pick just the best services, we could all suffer."

The proposed de-regulation of the postal service is at the consultation stage.