Arts Minister confident about future of An Post

The Arts Minister said he is confident about the future of An Post, describing the company as “viable and profitable”.

Patrick O’Donovan said that despite the challenges faced by mail delivery services across Europe, An Post has “outstripped” most of its detractors.

It comes after reports claimed that Government ministers were told that the postal service would have been a “substantial loss” last year without the revenue generated by general and European election post.

Mr O’Donovan presented the postal service’s annual report to Cabinet on Tuesday.

Following claims that An Post in in a “dire financial situation”, Mr O’Donovan said that the postal service has been transformed in recent years under the leadership of An Post chief executive David McRedmond.

Mr O’Donovan said: “The issue here is quite actually extraordinary. A set of accounts was brought forward by me yesterday to the Cabinet meeting, and I’m not going to breach Cabinet confidentialities because I’m constitutionally prevented from doing that, as is everybody else.

“But obviously somebody decided that that wasn’t going to be the case.

“David McRedmond is absolutely right. An Post has been transformed over the last number of years under his leadership, and the men and women that work in the organisation.

“The Irish state and the Irish Government are absolutely, totally committed to its future.”

On Thursday, Mr McRedmond said the results given to Cabinet show the “highest revenue”, making over a billion for the first time.

He said that An Post earnings grew from 38 million euros to 55 million euros.

Mr O’Donovan told RTE’s Today with Claire Byrne that An Post has returned to profit following some challenging years.

“I mean, mail delivery services across Europe have been challenged over the last number of years, but An Post has outstripped most of its detractors with regard to personal delivery,” the communications minister added.

“That I can say as a shareholder, is An Post return to profit last year. They’ve had some challenging years, there’s no doubt about that, and they’ve gone through a restructuring programme.

“One of the things that has been conflated as well in some of the media reports, which isn’t helpful either, and I think David McRedmond set the record straight, as people are conflating An Post with the independent postmasters.

“To be quite honest about it, it is showing, particularly from some politicians, a lack of understanding of what An Post is and a lack of understanding of what an independent contractor who works for An Post is.

“The CEO has done an excellent job, and notwithstanding the financial difficulties that are there.

“But how would a nameless minister or alleged nameless minister or source or whatever, would conflate that into saying that the situation is dire. I don’t know how they would come up with that.”

He added: “There’s challenges everywhere, because all of us have moved to a digitalised future. An Post are well ahead of the curve in terms of making sure that their future isn’t going to be inextricably linked just to next day mail delivery services, and that’s why they’re doing a very good job.”

Speaking to RTE Radio 1, Mr McRedmond said he was “absolutely furious” by the claims.

“That report is utter garbage. I’m here in Italy, on my holidays, I’m absolutely furious to read something like that,” he added.

“The company presented its results. The results were presented to Cabinet yesterday. They showed the highest revenue we’ve ever had, over a billion revenues for the first time.

“They showed that we grew our earnings from 38 million euro to 55 million euro. They showed that our net profit was at 10 million. The company is performing extremely well.

“We’ve got the highest level of parcel growth of any postal operation in Europe. So I just don’t understand it.”

He rejected claims that without profits generated from last year’s general and European elections, it would have made a substantial loss.

“It’s just simply not true, and it’s not how companies work. Yes, we got a big boost in the elections last year, but if it wasn’t the elections, it would be something else, and with the elections, we’ve huge costs with them,” he added.

“It was 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.

“Yes, we want more cash because we’re growing so fast, because we’re growing in commercial parcel markets.

“We use get paid for everything upfront when people buy stamps, we’re now in a commercial parcel market. We get paid on 60 or 90 days’ credit.

“We are constantly growing, so we need more working capital. We talk to Government about that, but this is all coming from a position of strength.”

He also rejected claims that cash reserves have fallen below one million euros.

“We have at the end of the year with 38 million cash reserves, and this year, so far this year, we are performing well ahead of our budget, and our budget for this year is to beat last year.

“I’m talking to Government about it. I hope there’s just some big misunderstanding somewhere, and the company, as I say, is doing really well.”