logo
Mick Clifford: An Post is indeed doing fine, but the company's original business is in bad shape

Mick Clifford: An Post is indeed doing fine, but the company's original business is in bad shape

Irish Examiner16-07-2025
Managing decline is never easy. So it has been with Ireland's post offices.
Over the last 30 years or so, the State's network has been reduced from nearly 2,000 to less than 1,000.
The decline was inevitable with the flight from rural to urban Ireland.
The introduction of the internet condemned what is now refereed to as 'snail mail' to the status of a sunset industry.
Then along came the pandemic to accelerate further the migration of business and communication online.
That reality is behind the public perception of the current status of An Post.
Yet, as the company's CEO David McRedmond pointed out on Wednesday, the network accounts for only around 20% of the company's business.
So it is that under McRedmond's stewardship, An Post has accelerated diversification away from mail delivery and into ecommerce and financial services.
The result has been a company that returned a profit of €5.6m for 2024, up from a €20m loss the previous year.
An Post also had, for the first time, revenues in excess of €1bn.
That is fair going for a company associated in the public mind — erroneously — with the dying habit of snail mail.
So it was no surprise that poor McRedmond nearly choked on his cornflakes on holiday in Italy when he saw a headline saying that his company was 'on the brink'.
He rang Morning Ireland to put the nation right and he let fly. It would be hard to blame him.
Presumably, he was expecting plaudits on his return home for the healthy finances instead of reading that he was overseeing a basket case.
An Post CEO David McRedmond pointed out that the post office network accounts for only around 20% of the company's business. Picture: Brian Lawless
An Post is indeed doing fine. But it is also the case that the company's original business is in bad shape.
In line with global trends, mail volumes were down by 7.6% in 2024.
Despite that, revenue from mail increased, but that is a scenario that can hardly be sustained.
As reported in Wednesday's Irish Examiner, suggestions are being floated that delivery days might be cut.
That would be a rational business decision, but one that would induce headaches among some politicians.
The post office has been an integral feature of rural, and to a lesser but still significant extent, urban Ireland for centuries.
As is often the case, perception, on which much of politics is often based, is very different from reality in this sphere.
In 1995, there were 1,839 post offices, which was down by around 500 from 10 years previous.
At the last count, there were 960.
In the last decade alone, 257 have closed.
According to a reply to a parliamentary question from Sinn Féin's David Cullinane, 201 of these were categorised as 'rural' and the remaining 56 as 'urban'.
Cullinane described the figures as 'shocking'.
'The local post office plays a vital role in Irish life, providing financial services, access to the social welfare system, communication infrastructure, and community supports,' he said.
'In many areas, they are the only visible expression of the State.'
Maybe so, but the reality is that post offices are run as businesses by independent postmasters who are effectively franchisees.
The average age of postmasters is pretty high. When retirement beckons these days, there are very few willing to take up the slack.
In May, the Irish Postmasters Union commissioned a report from Grant Thornton to map out the future.
The consultant calculated that a strategic investment of €15m annually, up from the current €10m, is required over the next five years to stay any further culling from the network.
If the money isn't forthcoming, the result would be 'cutting communities off from vital services, undermining national goals for regional equity, social cohesion and financial access', the report said.
The report also stated that that the network in Ireland is between €344m and €776m in terms of its annual social and economic value to communities.
Post offices are run as businesses by independent postmasters who are effectively franchisees. File picture: Maxwells
All of that may be something of a sideshow commercially within An Post.
Politically, however, it is the only show in town.
No government wants to be associated with what effectively would be further cuts to services particularly in rural Ireland.
So it was that, to mix a few metaphors, somebody in cabinet leaked in order to run a flag up the pole, suggesting that palms need to be greased in the name of votes.
Whomever could it have been?
The minister who brought the report to cabinet, Patrick O'Donovan, said that it certainly wasn't him.
One down, 14 ministers and a few super juniors to go.
Not only did a minister breach cabinet confidentiality with that leak, they also took it upon themselves to trample all over O'Donovan's well-tended patch.
No wonder he was angry at how this leak turned out.
By rights he should have got on the phone immediately to McRedmond and they could have shared their anger and mused on how commerce and politics sometimes just don't mix.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

From boycotts to barcodes: How supermarket choices still shape the world
From boycotts to barcodes: How supermarket choices still shape the world

Irish Examiner

time2 hours ago

  • Irish Examiner

From boycotts to barcodes: How supermarket choices still shape the world

Collective action in the supermarket can influence world events. Dunnes Stores workers boycotted South African oranges in the 1970s. The strike made international headlines and led the Irish government to ban fruit and vegetables from South Africa. Prior to the strike the workers had known little about South Africa, but were persuaded by Nimrod Sejake, a trade unionist from South Africa exiled in Ireland, that South Africa was like a pint of Guinness: A small number of whites at the top and all the black people underneath. People can now take collective action by using apps. Scan a barcode and the app may tell you whether the product you want to buy has been ethically produced. I was recently made aware of a missed scan or misinformation on one of these boycott apps. That gave rise to a question about the country of origin of a citrus fruit and the information contained on the label. It's remarkable how much information can be derived from a small tag or label attached to a net of oranges, and I'm going to use oranges as an example. The shopper had scanned the label on a net of oranges in to an app, which read the label and reported that it was an unrelated product, a bar of chocolate. Because the bar code didn't match the product that had been scanned, the shopper felt there was something nefarious about the oranges, which were labelled as Egyptian. There are two questions: Do the boycott apps work, and can we rely upon the labels in the supermarket? Boycott apps scan a product's bar code and identify the brand, manufacturer, or parent company. Based on this, they tell you whether the product aligns with or violates ethical, political, or environmental criteria. Most of these apps do not have access to a full bar code registry, so they rely on crowdsourcing databases, open-product databases, and public company information. Larger organisations and companies are easier to track than others, particularly when the bar codes are common internationally. For example, a can of popular cola has the same bar code no matter the country. Products that are produced and manufactured specifically for a supermarket are more difficult to track. Some retailers use brand-specific bar codes that only work in their own shop environments and do not transfer elsewhere. I visited five supermarkets belonging to the pillar retail brands in Ireland and examined each individual bar code on citrus fruit. That shopper was right: One specific net of oranges scans as a bar of chocolate from a competitor. However, of all the citrus fruit labels that I examined more than 50% are not contained within the boycott app that the consumer used. Remember, the apps rely on shoppers to upload this data to inform others. What about those labels that say that the product has come from Egypt? I visited many Irish supermarkets and examined more labels on oranges, lemons, and limes than I care to count, and one thing became apparent: All citruses sold in Ireland are clearly labelled with the country of origin. It's actually unsurprising that some of the oranges on our shelves come from Egypt, the fifth-largest producer of citrus fruit in the world and the largest in proximity to Europe — it produces more than Spain. Under EU regulations (No 1169/2011) the country of origin must be placed clearly on the product label. All the labels I examined stated where these citrus fruits had originated, whether it was Egypt or Spain, or beyond Europe and her neighbours, or as far afield as Argentina and Costa Rica. Also, did you know that any treatments applied to your fruit before it makes it to the supermarket shelves are now clearly disclosed on the labels? If you have looked closely at the labels on fruit lately you may have noticed some terms that may not be familiar to you. Thiabendazole, Pyrimethanil, and Imazalil are all fungicides and applied as a dip or a spray after harvest to reduce the growth of mould. You'd be familiar with this mould if you picked up an orange that may have sat in the fruit basket for too long and saw it had developed a green or blue mould and was exceedingly squishy. These fungicides are designed to keep your fruit fresher for longer and are highly regulated by the EU. The final treatment that you may see listed on the label is E904 — commonly known as shellac. Shellac is often used to glaze apples and citrus fruits to give them a shiny appearance and can extend shelf life. Any fruits that have been treated with this glaze are unsuitable for vegans, as shellac is a natural resin secreted by the lac insect. Vegan or not, we should all be washing our fruits before eating or even juicing them. BOYCOTT APPS Boycat and 'No Thanks' [ are the names of two ethical trading apps which many Irish consumers are using to check food producers to see if they are on a boycott list. An organisation may be placed onto a boycott list for being based in a particular country, but also having dubious equality or sustainability credentials. These apps enable consumers to make an informed choice when doing the shopping. Always read the label — and approach the retailer if you have any queries on provenance. If you believe that a retailer or trader has breached consumer law, you can always report your concerns to the CCPC by phoning their National Consumer Helpline on 01 402 5555 or emailing ask@ Read More Remember when a minister held Guinness 'hostage'? And other Irish food stories

Tariffs aren't good news but it could have been much worse
Tariffs aren't good news but it could have been much worse

RTÉ News​

time3 hours ago

  • RTÉ News​

Tariffs aren't good news but it could have been much worse

While the crucial US EU trade deal announced this weekend does bring certainty for businesses, there are significant drawbacks. Fundamentally, tariffs are negative for trade. The US is a significant export market for Ireland, and many sectors now face duties of 15% which did not exist last year. The biggest issue is pharmaceuticals, which are the largest Irish export to the US, valued at €44bn in 2024. In recent months US President Donald Trump had threatened enormous duties on drugs imported by America. He had ordered a national security investigation of the pharmaceutical sector. Last night, Tánaiste Simon Harris said his understanding was that after the investigation concludes the maximum tariff which could be imposed would be 15%. So, while the threat of more damaging duties is averted, pharmaceuticals made in Ireland may well face 15% tariffs in future, up from zero at present. Another key sector for Ireland is the manufacture of computer chips. Like pharmaceuticals it has been subject to a separate investigation by the Trump administration and faced the possibility of punitive tariffs, but it too could face a 15% tariff after the investigation ends. Last night, European Commission President Ursula Von Der Leyen said there was no decision yet regarding spirits exported to the US. This is critically important to Ireland's whiskey industry which has already seen several recent closures. There had been speculation that sector could have been part of a zero-for-zero tariff arrangement, but that is not yet agreed. Another important area for Ireland is aircraft leasing. Ms Von Der Leyen said last night that aviation would be part of a tariff-free arrangement. For other EU countries the massive duty of 27.5% which was imposed on European cars now falls to 15%. Some existing tariffs will be folded into that baseline 15%, meaning it would be an all-in tariff. For example, it is expected to include the existing "most favoured nation" duties of 4.8% which exist currently under World Trade Organization rules. The fact there is a deal at all avoids the threat of a prolonged tit-for-tat trade war. It means businesses can plan, investments can be made, and job-creating projects can proceed. But exporters are already seeking Government support as they navigate the new reality of the Trump administration's tariffs. The EU-US agreement is not a trade deal in the usual sense. Normally these pacts are negotiated over years and culminate in a document running to hundreds of pages. What was announced yesterday was the framework of a deal with much detail yet to be finalised. Yesterday wasn't the end of the negotiations, but it was a milestone.

Taoiseach welcomes trade deal between EU and US
Taoiseach welcomes trade deal between EU and US

Irish Daily Mirror

time6 hours ago

  • Irish Daily Mirror

Taoiseach welcomes trade deal between EU and US

Taoiseach Micheál Martin has welcomed a deal between the European Union and the United States, which will see a 15% tariff on most EU imports to the US. The deal was reached during a meeting between Donald Trump and the president of the European Commission on Sunday. The US president met European Commission President Ursula von der Leyen to hammer out the final details on the trading relationship between Europe and the US. Reacting to the deal, Mr Martin said the agreement was very welcome. 'It brings clarity and predictability to the trading relationship between the EU and the US – the biggest in the world,' the Fianna Fail leader said. 'That is good for businesses, investors and consumers. It will help protect many jobs in Ireland. 'The negotiations to get us to this point have been long and complex, and I would like to thank both teams for their patient work. 'We will now study the detail of what has been agreed, including its implications for businesses exporting from Ireland to the US, and for different sectors operating here. 'The agreement is a framework and there will be more detail to be fleshed out in the weeks and months ahead.' Mr Martin said the higher tariffs will have an impact on trade between the EU and the US, which will make it more expensive and more challenging. US President Donald Trump enjoyed a round of golf before his meeting with Ursula von der Leyen 'However, it also creates a new era of stability that can hopefully contribute to a growing and deepening relationship between the EU and the US, which is important not just for the EU and the US, but for the global economy,' he added. 'Given the very real risk that existed for escalation and for the imposition of punitively high tariffs, this news will be welcomed by many.' The deal was also welcomed by deputy Irish premier and Minister for Foreign Affairs and Trade Simon Harris, who said it brings clarity to businesses. 'While we have yet to see the detail, I welcome that an agreement has been announced by Commission President von der Leyen and US President Trump,' Mr Harris said in a statement. 'A deal provides a measure of much-needed certainty for Irish, European and American businesses who together represent the most integrated trading relationship in the world. Ireland makes a key contribution to this with the Ireland-US economic relationship valued at more than one trillion euros. 'The US had made clear, and this has been replicated in other recent agreements, which the US has reached with other countries, that a baseline tariff was always going to be part of the outcome. 'I have always stressed that tariffs are damaging and will have a negative impact on companies exporting to the US. 'While Ireland regrets that the baseline tariff of 15% is included in the agreement, it is important that we now have more certainty on the foundations for the EU-US trade relationship, which is essential for jobs, growth and investment. 'President von der Leyen described this as 15% tariffs across the board, all-inclusive.' He said further detail is needed around pharma, aviation and other sectors. Mr Harris said he will examine the details of the agreement over the coming days to establish the effect on Irish businesses and the economy. Earlier, EU commissioner Michael McGrath said the meeting was a 'significant and decisive moment'. Mr McGrath, EU Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, said it would involve substantive negotiations between both sides. 'It's a significant moment, we hope a decisive moment, and it builds on an enormous amount of work that has been done over quite a period of time,' Mr McGrath said ahead of the meeting. 'President Trump invited President von der Leyen to Scotland for a meeting. 'This follows on the back of intensive negotiations over a number of months. He added: 'It is not a case of turning up and signing on the dotted line. There will be a real discussion that will happen, and it will take on a dynamic of its own, and let's see what happens over the course of the afternoon. 'But from the EU's point of view, we are determined to do all that we can to get a deal for European businesses, because we recognise the cost of uncertainty. 'It manifests in trade and in investment decisions and ultimately in employment and of course tariffs can cost consumers at the end of the day. 'We want a good deal. We have negotiated hard, and we're at a point now where hopefully the two leaders can today bring it to a concluding phase.' Subscribe to our newsletter for the latest news from the Irish Mirror direct to your inbox: Sign up here.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store