THE new interim chairman of postal group Consignia will today be pitched in at the deep end as talks begin to stave off threatened strike action by staff.

Allan Leighton, the 48-year-old former head of supermarket chain Asda, will hold the non-executive, part-time post until a permanent chairman is appointed later this year.

Talks will be held today between Consignia and the Communication Workers Union to try to avert the strike over pay.

The union is seeking a five per cent pay increase for 140,000 workers and a commitment that basic pay will be a minimum of £300 a week by October next year.

The Royal Mail has offered a rise of two per cent, which could be improved if quality of service targets were met.

Mr Leighton is a previous chairman of Bhs, and non-executive director of Scottish Power, BSkyB and lastminute.com, who lists among his hobbies morris dancing. But he will have to show some fancy footwork if he is to deal with the industry's problems, which include the contraction of Consignia's urban network, as well as the threatened pay dispute.

Officials at Consignia yesterday described reports that up to half of Britain's 17,500 post offices could be closed as part of a strategic review as "absolute nonsense".

But it is known that the 8,000-strong chain of post offices in towns and cities will contract in coming years.

The number of closures will depend on the take-up of a compensation package for sub-postmasters.

"There is no closure figure. To suggest that thousands of post offices face closure is just wrong.

"We are continuing to look at the urban network in conjunction with the Government and the Federation of Sub-Postmasters," said a spokeswoman.

It is expected that Mr Leighton will remain as chairman for three to four months while efforts are made to appoint a permanent successor to Neville Bain, whose contract expired at the end of last year.

Peter Skyte, of the Communication Managers Association, which represents 15,000 post office managers, said: "We want to see a permanent appointment because we believe there is a need for sufficient time to be carved out to supply direction and vision for Consignia and its employees.''