Department casts doubt on further Irish postal hike

The postal market may not be able to cope with further price increases from An Post, according to a senior official at the Department of Communications.

In a letter written in January, Brendan Tuohy, secretary-general of the Department of Communications, said that, following recent price hikes, the ability of the market to bear another increase was in doubt.
An Post is seeking to increase stamp prices in an attempt to stem massive losses.
Itt is understood that the State company is seeking a hike in the price of a stamp from 48c to 55c.

Tuohy’s letter also indicated that the Department and the Minister, Dermot Ahern, were angered by the financial performance at An Post.

However, a spokesman for An Post has denied the market is unable to sustain another price increase.

He pointed out that An Post was not allowed to have any price increase between 1991 and 2003.