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.
An Post is facing huge financial losses at a time when customers are unhappy about the levels and cost of services and its workforce is disturbed by new work practices and proposals to reduce the number of employees.
At the same time, vital restructuring plans are tied up in deliberations at the Labour Relations Commission. And the Government, as sole shareholder, is behaving as if these matters were outside the scope of its responsibilities.
There seems little doubt the company’s new chief executive, Mr Donal Curtin, is anxious the semi-State company should return to profitable trading. Last month, An Post announced the closure of its parcels service, SDS, with the loss of 270 jobs. That decision will see SDS reintegrated into the main An Post group and the National Implementation Body has recommended that the company provide trade unions with details of the financial rationale involved.
Read MoreOn 2 June 2004, the Postal Services Commission (“Postcomm”) issued a consultation notice on the proposed grant of a licence to Special Mail Services Limited (“SMS”). Representations on the granting of the licence were requested by 2 July 2004. Two representations were received, neither of which raised any objection to the granting of the licence. Postcomm has decided to grant the licence to SMS.
Read MoreTNT Mail has appointed Simon Dolph to the newly created role of head of marketing and communications.
Dolph moves from building society the Children’s Mutual, where he was a marketing consultant.
Dolph will be responsible for developing the TNT Mail brand and building awareness of the downstream access service ahead of its launch. TNT Mail will work with Royal Mail, which will deliver post on TNT’s behalf.
Dolph said: “This is a unique opportunity to be working for one of the most dynamic new entrants into the UK postal market.
“TNT Mail will be a breath of fresh air for customers to work with as it brings modern thinking to the way mail distribution and delivery operates in this country.”
Read MoreThe 2004 balance sheet of the Italian state-owned postal services company Poste Italiane S. p. A. is forecast to be positive, the company CEO Massimo Sarmi said on August 23, 2004 at a meeting in Rimini, central Italy.
Poste Italiane balance sheets for 2002 and 2003 were also positive, Sarmi said. Currently the company carries out between 15 million and 16 million electronic transactions daily. After signing an agreement with U. S. software developer Microsoft, Poste Italiane will improve and modernise its offices in the course of one year.
Poste Italiane economic plan envisages the investment of 800 mln euro (USD983. 7 mln) annually for technical innovations. Currently the company employs 153, 000.
Read MoreBusiness lobby group ISME, today slammed proposals before the communication watchdog, ComReg, for an increase in postal charges. ISME, described the 14.5pc proposed increase in postal services as, “yet another body blow to small business, if approved”. Commenting on the application, ISME Chief Executive Mark Fielding said, “this latest application is outrageous and if approved will give a 45pc increase in the last two years, six times the corresponding rate of inflation”
Read MoreLa Poste chairman Jean-Paul Bailly said the French state-owned company plans to keep its 17,000 outlets for postal services.
Asked in an interview with French daily Le Figaro if La Poste will get rid of 6,000 post offices as part of restructuring plans to modernise the service and cut 10,000 jobs as unions expect, Bailly said: ‘I’ve read the figures … I refute them categorically.’
‘There are 17,000 postal outlets in France, there will be 17,000 tomorrow,’ he added.
Unions last week said La Poste plans to extend restructuring tested in the Loire-Atlantique region to other areas in France from January 2005.
But he admitted La Poste needs to upgrade it service.
Read MorePlans by Deutsche Post to acquire a majority stake in Austria’s post office are on the brink of collapse over the lack of political backing.
The Austrian deal is central to the German postal and logistics supplier’s plans to expand its pan-European mail network.
OIAG, the Austrian state holding group and 100 per cent owner of the post office, was considering the privatisation of 50 per cent of the country’s post office by 2006.
OIAG is still considering various options, including the search for a strategic partner.
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