The semi State business of An Post has announced that the price to post a domestic letter or post card is to rise from €0.72 to €1. This is a staggering 38% increase. Background to this incredible increase is a shortage of cash flow. Seemingly, An Post is facing difficulties to pay its staff. Failure to pay the wages could result in bankruptcy. With other words – it’s very serious.
According to David McRedmond (An Post CEO), over the last decade the posting of physical letters have declined by 50%. Electronic mail has taken over. This trend is to continue by 5% – 10% year for year. McRedmond said that An Post is one of the most efficient postal services in Europe and has to find a way to benefit from the global trend of electronic revolution. Rather than sticking the head into the sand, it is a matter of embracing change.
What McRedmond and Co seem to forget is the fact that the few people who are left sending private physical letters are Ireland’s pensioners. It’s mostly the elderly who opt for the good old personal touch of sending a card or a letter, rather than an e-card or an e-mail. It’s the pensioners who can least afford this 38% increase. Businesses won’t be affected by this price hike, as they generally enjoy special deals with An Post as it is.