An Post to get €30m in funding to save at-risk post offices
AN Post is to receive €30million in State funding after the Government yesterday gave the green light for the loan aimed at saving endangered post offices.
The company welcomed news of the loan – while vowing to resolve its precarious financial situation.
Last year An Post incurred a loss of €15.6million but said last night that the company is on course to break even this year. It credited measures such as increasing the cost of postage, to its financial turnaround from last year.
Communications Minister, Denis Naughten said the funding was predicated on the delivery of ‘stringent conditions and key performance indicators’ which will be monitored monthly.
He said by allowing An Post to increase the price of the stamp a ‘cash crunch’ was avoided. However, the minister acknowledged: ‘Without further remedial action, losses will simply keep going.’
The news of the cash injection comes following the Irish Daily Mail’s Save Our Post Offices campaign, which has highlighted the impact of closures on rural communities across the country. Announcing the agreement yesterday, Mr Naughten said: ‘An Post has developed a comprehensive strategy to return the company to a sound financial footing and to develop it into a modern and cost effective operation. The Government wants to see An Post and its network not just survive, we want it to thrive in the future.
‘The State funding of €30million represents the tangible commitment by the whole of Government to sustaining a nationwide post office network.’
Minister Naughten said difficult decisions lie ahead but added that without ‘immediate action’ the national postal service could have become extinct.
Commenting on the extension of the long-term loan, An Post CEO David McRedmond said: ‘The company is facing into extraordinary challenges but by working collaboratively with all stakeholders including Government, unions and staff, we have already achieved a very significant turnaround in 2017.’
Mr McRedmond said An Post was now moving in the right direction but acknowledged that much more work needed to be done.
The news of financing comes following the Mail’s ‘Save Our Post Offices’ campaign.
The post office in Old Pallas in Co Limerick was among those facing closure highlighted by the Mail at the start of the month.
Locals fear the post office will close its doors following the erecting of a sign on its door stating the business is ‘under review’.
‘Stringent conditions’