Independent TD Michael Healy Rae has said that increasing the price of stamps "is the wrong way to go".

The sub post master said that An Post should be thinking outside the box and instead bring down the price to encourage more people to use the postal service.

His comments come after news broke last week that the cost of a standard postage stamp is likely to rise by more than 20 cent next year as a result of the Government’s decision to remove the price cap.

An Post is set to record a loss of between €12 million and €15 million in 2016 and would lose about €40 million next year without implementing the price rises and costs savings

“We want to enhance the service, we’re not looking for hand outs. Post offices want to wash their own faces, if you know what I mean, to be productive and viable,” Healy Rae told RTE’s Today with Sean O’Rourke show.

He added that An Post should look to Michael O'Leary and Dunnes Stores as examples of how to improve footfall.

“Increasing the price by 20c, the third increase in a few months, is not on.”

He called for the introduction of community style services as had been done in New Zealand.

Mr Healy Rae pointed out that if a pensioner wanted to send a letter it could cost over a euro for an envelope and stamp.

“That will stop them using the postal service. We need to encourage them to use the network. We don’t want to see the disappearance of the art of handwriting or the sending of personal notes.”

He said that an increase in the price of a stamp was no guarantee of profit, instead there could be a fall off in business.