Ireland postal price rise decision expected
A formal decision will be made this week on whether to grant An Post a price rise in domestic postage rates, which could be worth some E18 million in a full year.
The company has sought a range of increases including a rise of 7c to 48c on the basic stamp.
The Commission on Communications Regulation (ComReg), has recognised the need for increases in the company’s domestic postal rates, with prices “geared to costs” as EU regulations demand.
It also supports the end of “cross-subsidisation” where for example, customers using franking meters subsidise those who use stamps and customers who mail post in large envelopes and packets are subsidised by those who use ordinary envelopes.
ComReg, from whom An Post must seek approval for stamp price increases, has already demanded an improvement in An Post’s next-day delivery rate from 73 per cent to 94 per cent. This is based on the regulator’s assessment of the service, which An Post disputes.
The decision could also be affected by the embarrassing revelation that almost 2,000 tax rebate cheques posted by the Revenue Commissioners nine months ago were only delivered last week.
When she launched a month-long consultation process seeking the public’s views on the increases, the chairwoman of ComReg, Ms Etain Doyle, stressed “the customer should not have to continue to incur price increases to fund the inefficiencies of An Post”.
In the foreword to ComReg’s discussion document, Ms Doyle also said the key to the long-term survival and competitiveness of An Post was to “offer prices that reflect the cost of efficiently providing the service”.
However, An Post has sought the increases on the basis that it is operating at 1991 price levels, while inflation has risen since then by 42 per cent and labour costs by up to 45 per cent.
“What business in today’s world operates on 1991 prices?” a spokesman for the company asked when it lodged its application with ComReg.
An Post was granted an interim 3c increase in April last year on the price of a 38c stamp. Ireland, the company says, has the third-cheapest postal rate in the EU after Greece and Spain and if the increases are granted, it will still be among the four cheapest states.
As well as the increase in the basic stamp costs, the company also proposes a single price for items of less than 100g with large envelopes at 60c and packets at 96c. If granted, postal rates would be simplified to 48c for letters, two 48c stamps for packets and three for packages of up to 250g in the non-reserved area.
