In recognition of the very difficult financial situation facing An Post, legislation to provide for the repeal of Section 30 of the Postal Services Act, 2011 has been approved by Government today. An Post is facing an acceleration of the trend in volume decline which has been apparent for some years. This coupled with the impact of the 2.5% pay increase this year has led to deterioration in company financials.
In order to ensure that An Post continues to provide postal deliveries every day to each address, the company will be given greater pricing freedom for mail products. No price increase will take place until the legislation is enacted and until I make a commencement order in the New Year.
Under the Postal Act, ComReg still retains regulatory functions including pricing oversight and these remain unchanged.
The CEO of An Post David McRedmond announced today that international consultants, McKinsey & Company has been appointed to undertake a root and branch review of the company to identify the structural changes necessary to restore the company to a sound financial footing. The work of the Bobby Kerr report on the post office network will feed into the overall review.