'Challenges ahead' for An Post, says Taoiseach
Taoiseach Micheál Martin has admitted there are “challenges ahead” for An Post, after Cabinet heard concerns about changes required at the semi-State body due to financial difficulties.
Mr Martin said he has “confidence” in the board and chief executive of An Post.
However, when pressed as to whether he believes there needs to be operational changes at the company, he would not be drawn, only saying he believes An Post will make the right decisions.
“There will be challenges ahead and the importance is to be able to identify the changing behaviours and changing trends and then position the company to deal with that.”
The Irish Examiner reported on Wednesday there were discussions at Cabinet around challenges faced by An Post, due to an “inexorable decline” in overall mail numbers.
Despite profits standing at €5.6m in 2024, core post volumes fell by 7.6% which is in line with global trends.
Notwithstanding 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.
This could include a system whereby post would be delivered on fewer occasions per week or with fewer distribution centres.
It comes as communications minister Patrick O’Donovan denied being the source of a media leak, after An Post chief executive David McRedmond launched a broadside against the Government.
Mr McRedmond said: “It was an 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."Taoiseach Micheál Martin believes An Post will make the right decisions. Picture: Leah FarrellEchoing the Taoiseach’s comments, Mr O’Donovan told RTÉ Radio One there are “challenges” facing An Post amid the fall in letter volumes.However, he rejected assertions there would be changes to the speed or frequency of postal deliveries.The communications minister admitted any such changes would be a matter for An Post to decide.Asked directly if there would be a scaling back of post delivery centres or days on which letters are delivered, Mr O’Donovan said: “No they’re won't”.“Obviously 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.“An Post is well ahead of the curve in terms of making sure that its future isn’t going to be inextricably linked just to next-day mail delivery services.”He declined to outline what he said during his presentation to Cabinet on Tuesday, but said any changes to An Post would be a matter for the chief executive and board of the semi-State.Comparisons were made by senior Government sources with other EU countries which have less of a focus on next-day delivery for letters.At present, An Post has its standard postage rate set at next-day delivery, but the semi-State’s 2024 annual report suggests that domestic and international shippers are now "demanding reliability over speed".The report says that, as the industry continues to change, "An Post’s letters and parcels infrastructure and network of post offices will also transform".It calls for larger, custom-fitted facilities designed for both eCommerce parcel operations and letters, saying these “are needed to replace numerous smaller letter-focused operations”.A review of the existing services at An Post is currently under way, with sources saying changes will not be made until this has concluded.In a statement on Tuesday, An Post highlighted it had cash reserves of €38m and bank facilities of €30m.
