An Post seeks huge increases

An Post is seeking increases of over 30 per cent in postage stamp costs as its own costs are rising faster than sales. The company, which last year suffered a I£3 million drop in operating profits, is looking forward to mounting deficits and is awaiting proposals for a subvention to meet the burden of loss-making rural post offices. Last year the post office lost money and this is predicted to average I£20 million a year over the next three years according to the Irish Independent.
An Post chairman, Stephen O’Connoi; warned that costs rising faster than revenues could not be sustained as they would put the company’s future at serious risk.
A special meeting was held with a Department of Public Enterprise representative yesterday to stress the urgent need for lower costs and increased profits.
Chief executive John Hynes declined to specify how much of an increase in postal charges is being sought and said the company could not comment on its submission
to regulator Etain Doyle.
It is understood, however, that An Post wants basic postage costs to be increased by at least 30 per cent to compensate for the impact of inflation since the last price hike 11 years ago. Mr Hynes said Ireland was now the third cheapest EU state for postal charges.
An inter-departmental review of proposals for a subvention will be published later this month. It follows a study last year by former ICTU president, Phil Flynn, which suggested state subsidies for the 1,800 sub-post offices.
The company announced it is investing I£100 million in automating its mail-sorting centres and hopes to increase the percentage of post handled automatically from 25 per cent to more than 80 per cent.
The Government has agreed to give a five per cent stake in the company to its 9,500 staff, and the company is to buy a further 10 per cent to distribute to staff in the form of a profit-share scheme, worth about I£3,250 for each employee.