Plan ordered from An Post

An Post was tonight told by the Government to present a recovery plan within four weeks because of its “deteriorating financial position.”

Communications Minister Dermot Ahern directed the plan should outline short, medium and long-term recovery action.

The company today reported a loss of €47m this year - treble the amount anticipated – and disclosed plans for a total 1,500 redundancies. An Post also forecast further losses amounting to €39m next year.

Afterwards, Mr Ahern said he viewed the situation with “grave concern“, and planned to bring the matter to the attention of the cabinet immediately.

Mr Ahern said he had demanded from company chairman Margaret McGinley that An Post was sound for the rest of this year, and talked of being given “serious inaccurate” information by the company.

He said: “The figures are substantially worse that the budgetary information supplied to me and my officials earlier this year.

“That the finances of the company should have disimproved in such a short period of time is a matter of grave concern.

“Since late last year, my officials on numerous occasions have expressed disquiet about the An Post finances, but have been assured that the situation, while difficult, was under control.

“It now appears that this was not the case, and I view the submission of budgetary information, which, at this stage, appears to be seriously inaccurate, as entirerly unacceptable.

“An Post, its board, management team and staff, are facing a very challenging future.

“I have no doubt that the current position can be turned around and, in the medium term, we can look to an improved position.”

The An Post financial state prompted criticism of the the Government tonight from opposition parties.

The Labour Party said the current position was “the direct result of Dermot Ahern’s failed tenure as minister, despite his efforts to absolve himself from blame.”

Fine Gael’s Simon Coveney said: “It is clearly necessary for An Post to take strong action in order to remain viable into the future.

“It is regrettable that Communications Minister Dermot Ahern and his department had not anticipated the crisis in An Post, and one must question the effectiveness of the lines of communication between the minister and An Post.”