In many rural areas, and particularly in Northern Ireland, sub-post offices are part of the social fabric of the local community, and their demise would have serious consequences. Despite the onward march of technology, not everyone has a bank account or access to e-mail and the internet.

Post offices still provide a valuable service in paying out pensions, selling stamps, and enabling customers to access bank accounts and pay bills. And following the recent Pricing in Proportion initiative, they are increasingly being called upon to advise what postage letters or parcels require.

In many small towns and suburban districts, the post office is the hub of the local community. Their existence attracts business to the area, to the benefit of neighbouring shops.

While the Government is under an obligation to review the service on a value-for-money basis, the bottom line must not be the only criterion applied. Cognisance must be paid to the particular needs of local communities.

The era of a post office in every hamlet is over, but a comprehensive network is still required, both by individuals and firms. The Federation of Small Businesses says 88% of its members send mail daily, and need to have a post office nearby.

The Government must not make the mistake of reacting in panic to this year's projected loss of £200m, double the figure for last year. Officials must establish whether this is a one-off increase in the deficit or part of an upward spiral.

Ministers need to remember that a public service such as a post office cannot be expected to be 100% cost-effective. While losses can, and should, be curbed, a subsidy will always be required.

Small post offices can also play their part in reducing the burden on the taxpayer, by enhancing the range of services they provide and by opening for longer hours. The growing trend of post offices being located in supermarkets should be encouraged, as this reduces overheads, produces business and increases security.

During the consultation period it is imperative that local communities make their views known to the Government. The message must be that a one-size-fits-all approach will not work, particularly in Northern Ireland.