The cost of posting a letter will rise significantly next year. An Post says stamp prices will rise by up to 35% in 2017, after the price cap mechanism was lifted.
The company is blaming email for a huge drop in numbers posting letters the old fashioned way, and says it expects to make a massive loss in 2017. This year, it's expected An Post will make a loss of up to €15m.
An Post says letter prices in Europe have already risen significantly, where the average stamp price is €1.06. The company says it will now follow suit, and hike prices from 14% to 35%.
An Post is also undertaking a major strategic review which will consider the scale, scope and structure of the Group, taking into account major technology and market shifts.
David McRedmond, the recently appointed CEO of An Post, said "While a price increase will provide near-term certainty for the Company in its mails business, it is essential that we complete the strategic review thoroughly and urgently to design the service and Company for the long-term future."
"I am determined that the evolving strategy takes full account of An Post’s economic and social responsibilities", he added.
Fianna Fáil's Communications Spokesperson isn't happy with the planned increases. Deputy Timmy Dooley has warned An Post that it needs to "develop a long term business plan that ensures the viability of the postal service, and one which does not require continual price increases in the cost of stamps.”
