AN POST HAS PERFORMED WELL IN DIFFICULT CIRCUMSTANCES - KENNY

Posted on April 25, 2013 4:21 PM   |   Permanent Link   

Dublin Bay North Labour TD and Member of the Oireachtas Communications Committee, Seán Kenny, has said that An Post has performed well, despite the on-going difficult economic circumstances.

"The An Post Group achieved turnover of €807.3m in 2012, marginally ahead of the previous year's €806.7m. This was due in part to growth in its subsidiary companies' revenue to €111m (€80m in 2011), including One Direct and The Gift Voucher Shop, which are performing well and seeing the benefits of the company's on-going investment and diversification strategy.

"Traditional postal mail volumes declined by 5.2 per cent due to a combination of the economic circumstances and a structural decline in postal volumes in general, most likely due to more people communicating by electronic means. An Post incurred an operating loss of €17.5m (€2.2.m in 2011), the first trading loss incurred by the company since 2003, and this is because economic environment continues to be very challenging.

"I understand from An Post that the loss reported will be addressed within the current five year plan. The current strategy of on-going cost reduction, maximising revenue-generating opportunities across An Post and perhaps with an increase in prices to deal with the cost of providing the Universal Service Obligation (USO) will, I believe, return An Post to acceptable profitability. It will also re-establish the USO on a sustainable financial footing for the longer term benefit of the wider economy and the Irish people.

"The contribution of a high quality postal service to a modern economy is essential, and accepted throughout the world. Declining traditional mail volume has caused many countries to examine the financial model behind the provision of the Universal Service Obligation.

"An Post is now among the world's best postal companies in terms of service quality and infrastructure standards, and despite the recent price increase, the first for six years, remains among the cheapest in Europe. Investment from the Company's own resources, without An Post having to make borrowings or get a subsidy continued during 2012. Such investment has been key to An Post securing a number of major international parcel contracts which have the potential to generate further business for the Irish economy."