O'Donovan denies leak as An Post CEO slams 'irresponsible' reports on financial health
Communications minister Patrick O'Donovan arriving at Leinster House. Picture: SAM BOAL/Collins Photos
Communications Minister Patrick O’Donovan has denied being the source of a media leak criticised by An Post CEO David McRedmond as “irresponsible” and “wholly unacceptable.”
The reported on Wednesday that the report showed profits after exceptional items stood at €5.6m, up from a €20m loss in 2023, on the back of first-ever revenues of €1bn.
However, core mail volumes fell 7.6%, which the report says is in line with global trends.
Despite the decline in volume, revenue from mail rose in 2024 by 14.2%.
Given the challenges being faced by An Post, ministers were told some of the options being explored include fundamental changes to how post is handled.
Speaking on , Mr O'Donovan insisted he did not leak Cabinet discussions, after Mr McRedmond voiced fury over reports suggesting An Post's financial stability was overstated.
“The issue here is quite actually extraordinary," Mr O'Donovan said.
"A set of accounts was brought forward by me yesterday to the Cabinet meeting, and I’m not going to breach Cabinet confidentialities because I’m constitutionally prevented from doing that, as is everybody else.
“But obviously somebody decided that that wasn’t going to be the case."
Mr O’Donovan said that the person who claimed that An Post was going to need a bailout should have put their name “in the paper”.
He added: “The CEO has done an excellent job notwithstanding the financial difficulties and he did say it this morning, and we are meeting him very regularly, that he wants to work with the government in the new year around working capital.
"That's what a CEO does, but how a nameless minister, or alleged nameless Minister, or source or whatever, would conflate that into saying that the situation is dire. I don't know how they will come up with that."
Earlier today, An Post CEO Mr McRedmond condemned what he described as an “irresponsible leak” by a Cabinet minister, following reports that suggested An Post’s financial health was more precarious than presented.
Speaking to , Mr McRedmond said he was “absolutely furious” by the claims.
“That report is utter garbage. I’m here in Italy, on my holidays, I’m absolutely furious to read something like that,” he added.
“The company presented its results. The results were presented to Cabinet yesterday. They showed the highest revenue we’ve ever had, over a billion in revenue for the first time.
"They showed that we grew our earnings from €38m to €55m. They showed our net profit was at €10m.
“We’ve got the highest level of parcel growth of any postal operation in Europe. So I just don’t understand it.”
Mr McRedmond added: “It was irresponsible leak from a Government minister, which is wholly unacceptable.
“These are not the actions of a responsible shareholder. The company is doing really well."
Mr O'Donovan admitted there are “challenges” facing An Post, due to the decline in letter-sending.
He rejected claims that there would be any changes to the speed or frequency of postal deliveries, after the Cabinet was told An Post is facing an “inexorable decline” in mail volumes.
Given the challenges being faced by An Post, ministers were told some of the options being explored include fundamental changes to how post is handled.
Mr O’Donovan acknowledged that any such changes would ultimately be for An Post to decide.
On Tuesday, senior Government ministers were briefed on several options being considered, including fundamental changes to how post is delivered.
It is understood that the Department of Arts, Culture and Sport is examining various proposals, including a system in which post would be delivered fewer times per week or a reduction in distribution centres.
Senior ministers said the proposals involve “rationalising the footprint” of An Post, potentially reducing the number of distribution centres and moving away from a postal network model that dates back 30 to 50 years.
Asked directly whether there would be a scaling back of delivery centres or the number of days on which letters are delivered, Mr O’Donovan replied: “No, there’s not.” However, he reiterated that there are “challenges” in maintaining traditional delivery services as mail volumes fall.
“Obviously, look, there are always going to be challenges with mail delivery. There’s challenges in Luxembourg, there’s challenges in Denmark, there’s challenges everywhere because all of us have moved to a digitalised future,” Mr O’Donovan said, speaking on .
“An Post are well ahead of the curve in terms of making sure that their future isn’t going to be inextricably linked just to next day mail delivery services.”
He declined to share details of his presentation to Cabinet, stating that any decisions about the future of An Post rest with the chief executive and board of the semi-state company.
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