An Post Deeply Disappointed at ComReg Rejection

13 May 2003

The decision also has serious implications for our current pricing strategy which had anticipated significant savings from the delivery box initiative and which because of this very negative decision may not now be realised. Loss-making rural delivery routes are subsidised by profitable urban routes. We will now have to study carefully the options available to us.

It is quite astonishing that the detailed economic arguments, which accompanied our submission to ComReg, have been completely ignored in ComReg’s rejection of our proposal. Even at this stage, it is clear that we cannot avoid a further price increase application which might involve higher prices for rural deliveries.

ComReg says that our definition of “premises” as the fulfilment of our obligation for delivery, is correct provided we discharge our duty of care by providing a secure box and delivering to it. In doing so we will have discharged all our legal obligations related to delivery. We simply cannot afford to do more.