AN POST must better manage its costs rather than be sold off, the report of the Review Group on State Assets recommends.
The review group notes that in An Post’s core postal business, mail volumes fell sharply in 2009, down 10 per cent. This resulted in a corresponding 9.5 per cent drop in revenues to €564 million.
An Post runs 1,170 post offices, one of the largest post office networks in Europe. It numbers One Direct insurance and the National Lottery among its subsidiaries.
In common with postal services elsewhere, An Post faces a tough trading environment marked by declining volumes.
With deregulation in 2011, the potential for industrial relations difficulties is noted.
The report states that these factors along with the significant pension liability make it an unattractive candidate for sale.
The company’s National Lottery subsidiary, the report notes, requires it to return a minimum surplus of 26 per cent of sales.
The lottery exceeds this target with a return of 33 per cent of sales. Despite the surplus, however, the report recommends that the lottery licence – due to expire this year – be subject to open competition.
