Price rises vital if proposal refused, says An Post

AN Post will have to get a major price rise if it does not secure the go-ahead for the controversial roadside letter boxes, their spokesman claimed yesterday

And the company also confirmed it would not appear before an Oireachtas committee next week to explain why it wants to end home delivery of mail because it has prior commitments.

An Post is in financial crisis and expected to lose 27m this year if it does not become more cost-efficient.

"This is why we want to introduce letter boxes to cut annual costs by up to 35m a year," their spokesman John Foley said.

But the bid to end door-to-door postal deliveries is being bitterly opposed by

elderly, disabled and Opposition parties.

Pressure is mounting on An Post to cut its costs as it is

facing major competition from European postal giants before the end of the decade particularly in the more lucrative urban delivery areas.

The highly costly rural postal deliveries have been subsidised by profits made from the lucrative urban service up to now.

However, this will change when competition enters the market and is the reason why An Post needs a major price increase, their spokesman said.

But the Commission for Communications Regulation which controls the postal market is demanding An Post increases efficiency and is still very slow to sanction any price rise, Mr Foley said.

"If we don't get the go-ahead for

the letterboxes our only option would be to secure a major price increase," he added.

However, a commission spokeswoman said they had received no information to date to justify the claim that An Post must get a major price rise to survive.

Meanwhile, An Post confirmed it will not appear before an Oireachtas Communications, Marine and Natural Resources Committee next week to explain why it wants to end home delivery of mail.

Committee chairman Deputy Noel O'Flynn had invited An Post management to appear before it on Thursday next.

A spokesman said the management had a prior commitment on that date. "However, we will appear before the committee at the

next available date that suits them we have no problem with it, we have done this two or three times before," he added.

But Deputy O'Flynn said he found it extraordinary that An Post could not make itself available to an Oireachtas committee to outline proposals which could change the postal service so dramatically.

"The proposal that An Post has now made public must have been well thought out and could very easily

be presented to the Communications, Marine and Natural Resources Committee within a week," Deputy O'Flynn added.

Meanwhile, the Communications Regulation Commissioner Etain Doyle has accepted the committee's invitation to appear before it on January 29.