Tag: Republic of Ireland

VAT plan could see Irish stamps costing 58c

The price of a stamp could rocket to 58c if the European Commission succeeds in imposing 21pc VAT on postal services, Fine Gael MEP Gay Mitchell warned.

He said the controversial proposals could fuel inflation and cause serious damage to An Post’s business at a time when it was struggling.

The Government referred the Commission’s plans to the Oireachtas European Affairs Committee, which is chaired by Mr Mitchell.

Previous proposals by the Commission to impose 21pc VAT on postal items weighing more than 2kg were dropped earlier this year.

The new proposals are for all items weighing more than 10kg to be taxed at the standard or reduced rate of VAT.

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Irish An Post to bring in consultants

An Post is to bring in outside consultants to study its performance in the next-day delivery of mail, it has emerged.

The loss-making company wants to examine whether it is possible to reach a 94 per cent next-day delivery target and to assess what it might cost. The telecommunications and postal regulator ComReg has said it wants An Post to reach the 94 per cent target as soon as possible

Hiring the consultants is likely to cost between EUR300,000 and EUR500,000, sources claimed last night. An Post already does its own sampling of next-day delivery performance and this contract, held by PricewaterhouseCoopers, is not affected by the latest move.

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Large clients criticise An Post service

Some of An Post’s largest customers have strongly criticised the company’s performance in relation to bulk mail. In response to a ComReg-organised consultation process on bulk mail, the State’s largest mobile phone company, Vodafone, outlined a range of shortcomings it finds with An Post’s service.
Vodafone produces 10 million mail items a year and says that, over the past three years, it has become seriously concerned about several issues. One of its strongest criticisms relates to international mail. It claims that foreign mail is delivered into Ireland by An Post at a loss because of international agreements An Post has failed to change. It says postal services sending mail into the State can avail of rates 35 per cent below those available to Irish customers of An Post.
Vodafone says this situation “remains the greatest single threat to the viability of the universal service”. It says the situation is “discriminatory against postal users in Ireland”.

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ComReg to direct An Post over Bulk Mail Access for business users

The Commission for Communications Regulation (ComReg) has today issued
a draft direction to An Post to ensure that businesses and organisations – who
send bulk mail or who consolidate mail from different customers – have
sufficient access points to An Post’s system in order to meet their needs.
ComReg is statutorily obliged to ensure that the number of access points to An
Post’s system meets the needs of users of the universal postal service.
In a report on consultation published today, ComReg sets out a draft direction
to An Post which states that there should be at least one access point for bulk
mail in every town with a population in excess of 15,000. In cases where a
county does not have a town with a population in excess of 15,000, an access
point will be made available in the largest town of that county.

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ComReg accuses An Post of missing targets

An Post is falling well short of targets for next-day deliveries, a study for regulator ComReg has found. The study of postal performance in the first half of the year found that only 70 per cent of letters were arriving at their destination the next day, compared with a target of 94 per cent. An Post is also failing to meet the target set by regulators for delivery within three working days. Following a consultation earlier this year, ComReg set a target for this sector of 99.5 per cent but only 95 per cent of letters are arriving in the time. An Post has dismissed the findings, saying the study, carried out by TNS mrbi, is too small and selective to be representative. It says that its most recent indications are that 92 per cent of mail is taking just one day to arrive.

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