Irish Govt Concerned About An Post Finances

The Minister for Communications, Mr Ahern, has expressed increasing concern about the deteriorating financial position in An Post, it is understood. With the State postal company expected next month to disclose day-to-day losses of ’20 million last year, Mr Ahern is believed to have called for monthly meetings between his Department and An Post to monitor the financial situation. The company has started a reform programme, but it is understood that a slippage in targets has led informed observers in Government circles to speak of ‘amber warning lights’ in the company. An Post’s spokesman declined to comment. In addition to the day-to-day losses, the company is understood to have taken an exceptional charge of ’50 million to pay for the transformation programme. This contributed to a ‘100 million drop in the company’s cash reserve to ’50 million, an area of significant concern for officials monitoring the company. While An Post will generate savings when 1,180 people will leave the company, each of its business divisions are losing money. According to one informed individual, there is serious concern about the SDS parcels and courier division, where losses have increased due to the economic downturn. This division is believed to be particularly vulnerable to competition. The company has said it will return to a break-even position by the end of the year, but it is believed there is concern in Government and official circles that transformation targets were not being met.