Ireland

Postal network is ‘over-serviced’, chief executive says

In other counties ‘average is one post office every 15km, while in Ireland there are five’

The increase in postage stamps will bring Irish prices ‘almost up to the EU average’. Photograph: Colin Keegan/Collins

Vivienne Clarke
Mon Mar 13 2017 - 10:04

The CEO of An Post has said there is "over-servicing" of the postal network in Ireland.

David McRedmond said that there are over 250 post offices outside towns and villages and that in other counties the average is one post office every 15km, while in Ireland there are five.

“We need to look at a plan for fewer, bigger post offices, co-located where possible. We’re going to strip down the service to make it financially viable,” he said.

Last week An Post told the Government that more than half of all the 1,100 post offices in the State are loss making and that the company needed to increase the price of stamps to avoid a cash squeeze in the near future, and buy time for a fundamental restructuring of the company.

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The possible closure of more than 80 rural post offices, as well as a programme of redundancies, is expected to be part of that plan, which is currently being drawn up by An Post with the assistance of consultants McKinsey.

An Post told the Government it would face cash-flow difficulties next month unless it could immediately increase the price of stamps.

The cost of a stamp has now risen from 72 cent to €1 to sustain the company prior to a major restructuring.

The increase will bring Irish prices "almost up to the EU average" and will help stabilise the company and give An Post time to look at services, Mr Redmond told Newstalk.

The first major review into the postal service in years will be completed within four to six weeks, Mr Redmond said.

“There are many good ideas about improving the viability of the postal network, but some could just not be implemented across the 1,100.

“There are plenty of good viable business ideas, but they have to be of scale and will have to have the population to support them,” he told RTÉ’s Morning Ireland.

The CEO said that in 2016 An Post lost €15million and that if actions were not taken An Post would lose an estimated €50million in 2017.

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