POST bosses insist no jobs will be lost at Royal Mail's Hawleys Lane depot after it was announced first class deliveries will be taken by road instead of rail.

But the decision, which the Royal Mail claims is down to "poor reliability", could spell job losses at English, Scottish and Welsh Railways (EWS) operations in Warrington, according to the rail operator.

In a move which could save the postal service £90 million, the Dallam rail terminal, only opened in 1997, will now have to be converted for other uses.

Royal Mail spokesman Wendy Martin said the terminal would not be closing but would need alterations to be incorporated into the company's distribution network.

She confirmed that no member of staff from the 70-strong workforce, would face redundancy as a result.

Mail chiefs have blamed overpricing for the failure to reach an agreement with EWS after protracted talks.

But Allen Johnson, chief operating officer for EWS, says a number of "competitive offers" were made to Royal Mail, without success. He says the mail trains are the most reliable on the rail network.

Brian Simpson, Warrington-based MEP branded the decision a "nonsense". He fears more mail vans will be diverted to the Royal Mail sorting centre at Omega, a claim denied by the firm.

Mr Simpson has contacted Adam Crozier, Consignia's chief, urging him to reconsider the decision.

Rail union RMT has condemned the move and called on the Government to step in.