Price of most overseas mail set to rise

An Post is set to increase the price of most categories of overseas mail in a bid to stem losses in its international division.

The company has declined to divulge the current level of losses, but it hopes the changes will result in savings of €6.5 million in 2004. The changes are effective from January 5th.

The changes are part of a major restructuring being implemented by a new chief executive, Mr Donal Curtin. Under his leadership, the company has already signalled it is ceasing the collection of the television licence fee.

The price of posting a standard airmail letter from the Republic to another European country (excluding Britain) will increase from 57 cents to 65 cents, while the price for heavier airmail letters will drop from 83 cents to 65 cents.

Under the new schedule, the cost of airmail letters to the UK will rise by 10 cents to 60 cents. These rates are part of An Post's attempts to eliminate losses incurred on services to the UK, the top destination for outbound mail from the Republic. Non-airmail letters to the UK will rise in price from 41 cents to 50 cents.

Non-airmail letters to Europe (excluding Britain) and the rest of the world go up from 44 cents to 66 cents. For mail under 25 grams to Europe and the rest of the world, the price will drop from 71 cents to 60 cents. Airmail letters are transported by air from Ireland, while non-priority or surface mail is transported by container ship and road/rail.

The company said prices would rise for other services, including Swiftpost, direct mail and publication mail. The scale of these increases was not disclosed although a spokeswoman said customers in these sectors had been informed. Details would be posted on the company's website, www.anpost.ie.

"We have taken the opportunity to broaden the weight bands and simplify the price structure while continuing to ensure that our customers can avail of highly competitive rates for international mail," said the spokeswoman.

"We have revised the international mail rates as part of an overall rebalancing and simplification of tariff structures and because of the necessity to keep pace with increased costs and increased payments to international postal operators."

The company said despite increases in several categories, the Republic's international mail prices continued to be among the lowest in Europe. Outbound international mail makes up almost 17 per cent of An Post's annual turnover from letters. Last year this translated into €73 million.

An Post is anxious to improve its yields from outbound international mail, but inbound international mail also remains a financial concern.

Under the REIMS agreement, which governs payments between postal services, An Post makes a loss on each foreign letter it delivers here. The company is currently trying to renegotiate this agreement, particularly with the Royal Mail. ComReg, which regulates An Post, has instructed the company to alter this agreement so that losses are curbed.