NEW Zealand-born businessman Neville Bain, 57, former group chief executive of Coats Viyella and deputy group chief executive of Cadbury Schweppes, was yesterday appointed chairman of the Post Office.

President of the Board of Trade Margaret Beckett said she was delighted that Bain had accepted her invitation to take on the ''vitally important'' appointment. He will succeed Sir Michael Heron.

''Neville Bain's wide commercial experience will be extremely valuable to the Post Office and we are delighted to have secured his services,'' she said. Bain is chairman of Hogg Robinson and a non-executive director of Safeway, Scottish & Newcastle, and Gartmore Scotland Investment Trust.

Derek Hodgson, joint general secretary of the Communication Workers Union, yesterday welcomed Bain's appointment, which he said offered ''fresh opportunities'' for the business and its workers.

''I hope to arrange an early meeting to expand on how the union feels we can begin to motivate, and encourage staff, who have had their achievements overlooked for decades.''