Irish postal operator An Post has announced price increases for letters weighing more than 50gand reductions of up to 50% for shipping parcels with a weight of over 5kg within Ireland and
abroad, as part of the company’s incentives to help SMEs and to encourage online sales.Coming into effect on 1 May 2012, the new tariffs will not affect the majority of letters andpostcards as the basic €0.55 stamp rate for mail under 50g remains unchanged. Letters and postcardsweighing more than 50 g will cost €0.65 from next month onwards. An Post added that it has alsomade an application to the national postal regulator ComReg for an increase in the basic €0.55tariff later this year.
“The revised rates for mail above 50g will help to ensure the delivery of an efficient, qualityservice. There has been no increase in these rates since 2008,” An Post explained. Its mailbusiness is currently recording significant losses mainly due to the decline in mail volumes.
An Post stressed that its prices are still well below the European average and that it isamongst the lowest-cost providers for most services.
In contrast to mail price increases, there will be some significant rate reductions up to 50%for parcels weighing more than 5kg. Customers will thus be able to ship standard and registeredparcels weighing 5-20 kg at a unified price of €14.50 and €19 respectively with no further chargefor each additional kg.
Since 2007, An Post’s total mail volumes have declined by 23.5%. In 2011, volumes fell 7% andsignificant further decline is expected this year severely impacting the funding of the UniversalService Obligation (USO). An Post said therefore it is committed to provide the USO from its ownresources. “It is a vital piece of national infrastructure, central to the business and communitylife of the country and a key facilitator of economic activity including new businessinnovation.”
Despite the mail volume decline, the postal operator has significantly improved its cost base inrecent years with new revenue streams being developed in the mail, retail and subsidiarybusinesses. “Only where necessary, price increases are being introduced,” An Post added.
