STRUGGLING post offices across rural Eden, South Lakeland and Furness could be in line for a slice of a £450 million national aid package.

The European Commission has approved the UK's largest ever Government support package for rural post offices in the drive to buoy-up sub postmasters' incomes, services, computer systems and develop innovative postal delivery systems.

Local sub postmasters have welcomed the cash as a potential life-line to small post offices in isolated areas but say the benefits of the money will all depend on how it is shared out between the UK's 8,500 rural PO's.

Barry Peall, of the local branch of the National Federation of Subpostmasters, said: "This money is going to be a lifeline for rural post offices but our major concern will be how can this money be spent. We will be watching very closely to see how the funds are administered."

Trade and Industry Secretary Patricia Hewitt said the fund would ensure customers had access to services in rural areas where they would not otherwise be provided on a commercial basis.

A Post Office Ltd spokesman said POs in Cumbria could expect to see a proportion of £150 million annual investment over the next three years but said it was too early to give an indication of how and where it would be spent.

The funding ann-ouncement comes in the wake of a special presentation by Post Office Ltd at Cumbria County Council last week.

CCC heard how the Internet boom, new banking habits and direct debit had all put the squeeze on post office core business leading to a massive programme of planned urban branch closures across the country.

CCC resolved to work closely with rural POs to support their role and mooted ideas including putting PO facilities into

village pubs, schools, shops and garages and boosting Royal Mail trade by introducing library services and using them to collect parking fines.

June 5, 2003 14:00