Ireland’s An Post to adjust postal rates from next month

Ireland’s An Post has announced its intentions to adjust its postal rates for items above 50g in weight from 1st May, 2012. The company said that following a review of its pricing, most letters and postcard rates would be unchanged, with the basic stamp rate for items up to 50 remaining at 55c.

However, it has applied to regulators ComReg for an increase in the 55c tariff later this year.

An Post said it was including a range of incentives for small businesses within its new tariffs, and to encourage online postal sales.

Among those rates that will change from next month, many classes increasing while some will be reduced, with An Post intending to cut rates by up to 50% for parcels over 5kg in weight sent nationally or internationally.

The company said it was changing its rates for mail above 50g to help counter “significant losses” in its five-day-a-week universal service from recent declines in mail volumes.

Mail volumes at An Post have dropped 23.5% since 2007, with last year alone seeing a 7% loss of volume, while mail volumes are expected to continue falling significantly this year.

“The revised rates for mail above 50g will help to ensure the delivery of an efficient, quality service,” the company said in a statement issued today. “There has been no increase in these rates since 2008. An Post’s mails business is incurring significant losses within its Universal Service Obligation.”

An Post added that it had “significantly” improved its cost base in recent years, and was now developing new revenue streams in mail, retail and its subsidiary businesses.