Post office network is not viable and its current revenues are under threat

It stands to lose more than £83 million by 2005 in a "no change" scenario

The crisis is not confined to rural outlets - larger urban offices will be hit hardest

Key contracts, such as those for social welfare payments, TV licence collection and saving schemes, are weakening due to price freezes and cuts

Ideas for new business "do not appear" to be able to eliminate losses

1,800 sub-post offices - run by franchise - are "incapable of surviving unsupported"

A State subvention is the "only real option" to finance losses

Government should determine framework to ensure viability of existing network or "modified" one