A business group has called on the Minister for Communications, Mr Ahern, to instruct An Post to drop its application for a price increase.
The postal company has applied to the Commission for Communications Regulation (ComReg) for an increase in stamp prices from 41c to 48c for letters. Higher increases are proposed for certain large envelopes and packets.
The proposals were strongly criticised yesterday by the Irish Small and Medium Enterprises Association (ISME), which said increases ranging from 17 per cent to 104 per cent were being requested.
Mr Mark Fielding, ISME's chief executive, said An Post needed to address its cost base, rather than "incessantly" looking for price increases, which was the easy option.
"Any increased income from price increases would be quickly wasted through existing inefficiencies and restrictive work practices," he claimed.
Mr Fielding said that by An Post's own admission the company had the potential to double its postal operation, which would still only take it to the European average.
"Ireland needs a healthy profitable postal service which is competitive and controls its costs while increasing the volumes in order to profit from the resulting economies of scale.
"It does not need another lame-duck State company passing on its shortcomings, in the form of increased tariffs, to its customers," Mr Fielding said.
The Minister should instruct An Post to withdraw its application until he is satisfied that all cost-cutting measures have been exhausted.
An Post has said the increases are necessary as it is currently operating at 1991 prices.
The cost of living has risen by 40 per cent since then, it points out, while labour costs have increased by 42 per cent.
Even if the price increase was granted, postal tariffs in the Republic would still be the second-cheapest in the EU, it said.
Public comments about the proposed increases are being invited by ComReg.