The chairman of an influential committee of MPs has warned against opening the postal market to competition too quickly.

Speaking on Monday, John McFall, the chairman of the Treasury select committee, called on the Postal Services Commission to ensure that increased competition is implemented at a pace which allows Consignia to compete, maintain a universal service and give customers greater choice.

The consultative deadline should also be postponed until May to allow the public accounts committee to finish its investigation into Postcomm's plans, he said.

The European Union requires liberalisation of the postal market for post over 100 grammes by 2003.

However, the regulator recommends fully opening the market by 2006. Originally, the consultation deadline was to be last week, with 30 per cent of Consignia's market for post under 350 grammes opened by the beginning of next month. The deadline has now been extended by a month with extra time given for stage one of the reform.

"A recent National Audit Office report on the postal services highlighted the risks to the universal postal service in the UK from the regulator rapidly opening the postal market to competition. The period that Postcomm is allowing for consultation on this sensitive issue is ridiculously short," said McFall.

"They are allowing only six weeks, while the government's code of practice on consultations recommends a minimum period of 12 weeks. There is no need for such haste on such an important matter. We should remember that Consignia is losing £1.5 million a day and is already facing job cuts of 30,000.

"We have to protect our postal service and not lead the charge on opening the market to competition."

A spokesman for Postcomm told ePolitix.com that the regulator would be interested to hear McFall's views, as well as any others.