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An Post looses millions!

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  • 30-04-2004 10:38pm
    #1
    Registered Users Posts: 3,924 ✭✭✭


    An Post seems to be making massive losses these days.

    I think competition needs to be introduced quickly so that competition will sharpen up our postal services.

    Collecting tv licences actually costs An Post money.

    An posts wants to increase postal charges (yet again) - but hopefully government will refuse.

    Sleth taxes are not answers to out dated and ineffeciencys.


Comments

  • Closed Accounts Posts: 1,313 ✭✭✭bus77


    Yeah It's been in **** for awhile now, but Its only partly due to mismanagment
    What can you buy for the price of a stamp these days?
    Stamps are dirt cheap considering the amount of hands it takes to get letters from A to B.
    Everything else has gone up trough the roof.
    I think competition needs to be introduced quickly so that competition will sharpen up our postal services.
    The reason why there is no hint of a rival to An Post (or other countrys postal services) is because they would'nt be able to beat the postage prices of An Post and still make a profit.


  • Registered Users Posts: 5,618 ✭✭✭Civilian_Target


    Yeah, An Post is inefficient, because its a state company, but at the same time, the population density here is very low so you need a lot of post offices, and a lot of postmen too.

    Stamps are cheap too, they're the same price as the UK for a stamp, but parcels are substantially cheaper with An Post. And even still, Royal Mail lose over £50 million a year, so why are you surprised that An Post is losing money?


  • Registered Users Posts: 78,371 ✭✭✭✭Victor


    Cork, you don't really understand infrastructure competition do you? Adding a competing company will only mean wasting more money. And look at the level of service provided by GLS (Royal Mail's parcel division here) - they make An Post look like a model of Swiss efficiency.
    Originally posted by Civilian_Target
    Yeah, An Post is inefficient, because its a state company
    Not quite. It is losing money because it has been mismanaged over the last 3-5 years and is in transition to automation.

    More of a management (as in the managers) issue than the traditional employee issue.


  • Registered Users Posts: 24,924 ✭✭✭✭BuffyBot


    I think competition needs to be introduced quickly so that competition will sharpen up our postal services.

    How would the competition make a profit?


  • Closed Accounts Posts: 1,359 ✭✭✭Sarsfield


    I'm finding it hard to be optimistic about the future for postal services anywhere in the developed world.

    Cork, don't think there's no competition. An Post is competing with phones and e-mail. Also with FedEx, UPS, DHL etc. I can get billed by e-mail, and pay my bills online. I can't remember the last time I posted a cheque.

    It won't be long until many people can opt to receive ESB, Eircom etc. bills solely by e-mail. Who writes letters these days? We send e-mails, SMS, picture messages, phonecalls.

    If An Post (or Royal Mail or USPS) has a future, it is very different from its current incarnation.

    Competition as an automatic way of making things better is fine as a soundbite for a politician. It's not so simple in the real world.


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  • Registered Users Posts: 5,695 ✭✭✭jd


    Originally posted by Sarsfield
    Competition as an automatic way of making things better is fine as a soundbite for a politician.

    The same politicians will be moaning when rural post offices are closed, or to-the-door deliveries cease.


  • Closed Accounts Posts: 1,136 ✭✭✭Superman


    Is it only me or should profits not be an issue for public services.
    My train of tought is:

    1. A service such as post office is for the people,
    2. Its designed to benefit society as a whole,
    3. If it cost extra this way its fine, at least i know a postal worker will get paid and not into the coffers of some big postal LTD..
    4. Companies can bitch and moan about it but i think this ios the reason why I pay bank account service charge etc.
    5. How many letters every week are really essential?
    6. I agree "Stamps are dirt cheap", Funny how it can cost more to buy a single envelope!


  • Closed Accounts Posts: 867 ✭✭✭l3rian


    anyone watch that show called third class post a while back, really funny how the geezer postmen in the uk work, when management asked politely for them not to leave 4 hours early becos of the huge backlog, they all told them to fcck off and walked out and it wasnt considered unusual, when the undercover recruit was starting management explained to him how to get payed twice for each shift, how to dump your post, how exactly to steal post using his mobile phone and how everyone is in on the scam and noone cares

    here it is: http://www4.channel4.com/news/2004/04/week_4/19_dispatches_post.html


  • Registered Users Posts: 3,924 ✭✭✭Cork


    I think ineffieceny and outdated work practies are much of the problem.

    The price of a stamp has increased a couple of times in recent years.

    They are looking to increase it again. I don't think charging the Irish consumer more because a bloated semi state cannot be efficent is unacceptable.


  • Closed Accounts Posts: 1,313 ✭✭✭bus77


    Allright so, you stick to your guns then Cork


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  • Registered Users Posts: 24,924 ✭✭✭✭BuffyBot


    Interesting post Cork...no answer on how viable competition could be introduced though I notice.


  • Moderators, Entertainment Moderators Posts: 17,991 Mod ✭✭✭✭ixoy


    I haven't seen the reports but I'm assuming the chief loss for An Post is mail delivery in country areas, where it's not financially viable to deliver. Now, even if An Post had competition - what company is going to want to service these areas, a service that is still needed?
    An Post has competition in areas like parcel delivery because that's a more profitable area. But getting someone to tackle the other areas that we don't like is more challenging.


  • Registered Users Posts: 3,924 ✭✭✭Cork


    New technologies should be adapted for the sorting of mail. We live on a small island with a small population. An Post are making losses hand over fist.

    Road Site Letter boxes should become a reality.


  • Registered Users Posts: 78,371 ✭✭✭✭Victor


    Originally posted by Cork
    New technologies should be adapted for the sorting of mail.
    They are. Have you been listening to the news at all? Why do uyou think they are making more than 1,000 people redundant?


  • Closed Accounts Posts: 1,313 ✭✭✭bus77


    They are trying to bring in new technology, but the main reason for the loss of money is the way wages and nearly every other cost have shot up in recent years.
    I dont hear you giving out about how other companies raised their prices?


    Year - 1980(ish)

    Price of a stamp - 28p
    Price of Independant - 50p
    Price difference = 22p (less than half)


    Year - 2004

    Stamp price - 48c
    Price of Independant - 1.50euro
    Price difference = 1.02 euro (more than double!)


  • Moderators, Entertainment Moderators Posts: 17,991 Mod ✭✭✭✭ixoy


    TBH, I was raging at An Post until I saw a report on Paxman's show on BBC2 last week about Royal Mail. Trust me, it could be a lot worse.


  • Registered Users Posts: 3,924 ✭✭✭Cork


    Originally posted by bus77
    They are trying to bring in new technology, but the main reason for the loss of money is the way wages and nearly every other cost have shot up in recent years.
    I dont hear you giving out about how other companies raised their prices?


    Year - 1980(ish)

    Price of a stamp - 28p
    Price of Independant - 50p
    Price difference = 22p (less than half)


    Year - 2004

    Stamp price - 48c
    Price of Independant - 1.50euro
    Price difference = 1.02 euro (more than double!)


    But compre the cost of a 5 minute call to New Zealnad in 1980 1nd that of today.

    Comparing the cost of a stamp with a nrespaper does not cut ice.

    An Post is a bloated semi state loosing money hand over fist. Why cannot semi states make PROFIT. They always have to be dragged out of oblivian. How much is the post of a postage stamp within the UK?


  • Closed Accounts Posts: 1,359 ✭✭✭Sarsfield


    Cork, go and do some research on semi-state companies please.


  • Registered Users Posts: 78,371 ✭✭✭✭Victor


    Originally posted by Cork
    Why cannot semi states make PROFIT.
    Typically because they have existed outside the norms of commercialism at the whim of politicians. Subsidiary to that point is how much of a loss would be made in the general economy if there was no An Post. How many hundreds of millions of man hours would be lost in the economy if, with no CIE, those that can't afford cars had to walk to work?

    Anyway, the ESB, Bord Gáis, Coillte and quite a few others do make a profit.


  • Registered Users Posts: 4,683 ✭✭✭daveg


    I heard the An Post CEO (Donal Curtin) on the radio a few weeks back when the losses were announced. He commented that the losses were due to new policies that had not being implemented by management. But surely it his overall responsibility to ensure policies and procedures are implemented by his management team? I'm flabbergasted that this guy is still CEO.


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  • Moderators, Entertainment Moderators Posts: 17,991 Mod ✭✭✭✭ixoy


    I would have thought so DaveG - that's why he gets the big bucks. He should take responsibility for the mess they've made of adopting cost cutting measures. If you're correctly describing his attitude, then it's no wonder they're stuck where they are with that sort of mentality.


  • Registered Users Posts: 3,924 ✭✭✭Cork


    They even made a mess of their European stamp.

    Geography as well as business principles seem to be lacking with this semi-state.


  • Registered Users Posts: 19,608 ✭✭✭✭sceptre


    Originally posted by Cork
    They even made a mess of their European stamp.
    Which stamp is this (anyone?). Obviously if there's a stamp out there with Cyprus where Crete should be (and there is), I want one.


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