Foreign workers lift retail trade at An Post

The large increase in foreign workers living in Ireland has provided a major boost to the retail operations of An Post, new data show.

According to figures obtained by The Irish Times, the volume of international money transmissions going through the post office network has grown by more than 600 per cent since 2000. Most of the growth has been fuelled by foreign workers sending money back to family members in their home countries.

The value of the transactions has increased by about 100 per cent each year according to internal company figures. About 42 per cent of the transactions took place with European countries, many of them accession states. Some 24 per cent were with African countries, 23 per cent were with Asian countries, with the remainder involving north or south American countries. A spokeswoman for An Post commented: "Many of these customers have a strong national affinity to using the post office".

An Post gets a commission on each transaction that takes place and the growth in the number and volume of such business has boosted returns for the company's retail division.

It is understood several banks and foreign exchange operators have also benefited from the growth in money transfers abroad. However, An Post with its 1,614 outlets has a strong advantage in the area and 299 staff are working on savings and remittance services alone each year.

While An Post has not performed well financially over the last few years, its revenue base has remained relatively robust. It reported annual revenues of €572 million back in 2000, but last year this grew to €750 million.

The company's far-reaching rescue plan last week received a setback when ComReg, the regulator, rejected its application for a 25 per cent rise in the price of a stamp, from 48 to 60 cent. However this was only a preliminary assessment and a consultation process will now take place.