An Post to receive €30 million from Irish government

An Post is to receive €30 million from the Irish government to help sustain the post office network and also maintain a five–day-a-week postal delivery service as well as expanding to a six day per week parcel delivery service.

In a statement regarding An Post, the Department for Communications, Climate Action and Environment said: “The funding will be subject to stringent conditions and Key Performance Indicators, the delivery of which will be monitored on a monthly basis. Financing will be provided in the form of a repayable long-term loan.”

The statement added: “The funding will inject the financial support urgently required to protect the future of the post office network and to substantially change and modernize the business model of An Post in the coming years against the backdrop of a systemic global decline in mail volumes.

“It will allow the national postal provider to directly respond to the long term changes in the postal market brought about by an increased use of e-mail and the seismic advancement of on-line payment services.”

Denis Naughten, the Minister for Communications, Climate Action and Environment, said: “I have taken a very proactive approach to An Post since becoming Minister. Last year when presented with the stark financial facts at An Post I acted quickly by repealing the price cap enabling An Post to increase the price of the stamp. The main impact of this measure has been to avoid a cash crunch in 2017 and reduce the level of losses expected to be incurred for the year by the company. It also allowed the company time to construct a modernization plan. However without further remedial action, losses for the Group will simply keep going.”

An Post issued its own statement welcoming the government decision, and outlining the “significant actions” which it says it has already taken to “resolve the financial situation”.

“An Post is moving in the right direction in becoming the logistics backbone of e-commerce in Ireland while providing new and traditional services for every community in the State.”
 
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