An Post will shortly apply for a 14.5 per cent rise in the price of a stamp in an attempt to cut crippling losses at the company.
Chief executive Mr Donal Curtin said the company would submit the application to regulator ComReg in early summer. He said a rise from 48 to 55 cents was ‘realistic’. He was speaking as the company announced an operating loss of EUR43 million for 2003.
Read MoreSWOT analysis of Royal Mails Mailing Preference Service by David Robottom.
Read MoreAn Post has unveiled losses of just under EUR43m for last year at the launch of the company’s annual report.
It is the highest operating loss since the postal service was established as a state-owned company in 1984. It has also anticipated that losses for this year will be massive.
The evidence for urgent change is stark and An Post management has said that key changes in work practices and price increases will have to be implemented.
Staff reductions are also on the cards.
Read MoreThe magazine industry’s campaigning body has hit out at proposals by the Royal Mail to introduce variable pricing structures for postal services.
The Periodical Publishers Association said it had deep concerns over the Royal Mail’s plans for “subjectivity” when establishing a price for individual items. Although negotiations have been taking place with the Royal Mail for two years on its size-based pricing proposals, the PPA has yet to have fears allayed over pricing decided by “flatness” of a mailed product or the extent to which it can be folded into a letterbox.
Read MorePostcomm today began consulting on Royal Mail proposals that would bring about
the biggest change in postal pricing since the Penny Black. The company has asked Postcomm if it can change the way it charges for letters and packets to take account of the size of the mail item. At the moment the price of the stamp depends on the weight of the letter. But Royal Mail says it costs more to sort, handle and deliver big envelopes and packets and it wants stamp prices to take account of the size of the envelope. Nigel Stapleton, chairman of Postcomm said:
“These proposals would involve major changes. They mean that light but large mail such as very large greetings cards, CDs, rolls of photographic film, audio cassettes and video tapes, would cost more to post, but that some heavier items – books for example – would cost less. I hope as many people as possible will let us know what they think.”
Post & Parcel Magazine is our print publication, released 3 times a year. Packed with original content and thought-provoking features, Post & Parcel Magazine is a must-read for those who want the inside track on the industry.
