O’Callaghan proposes change to law to prevent massive leaps in postage prices

Fianna Fáil Dublin City Councillor and Front Bench member, Jim O’Callaghan, has called for an amendment to the Communication Regulation (Postal Services) Act 2011 in order to cap increases in postage rates to the rate of inflation.  An Post announced recently that from today (Monday 21 July) the price it charges for the delivery of a standard domestic letter will increase from 60c to 68c while the standard international letter rate will increase from 90c to €1.

“In April 2013 the price of a standard stamp increased from 55c to 60c, whilst international stamps increased from 82c to 90c. Now, only 15 months later, consumers and businesses are being exposed to a further increase. There has now been a 23% increase in the price of a standard domestic letter within 15  months, during a period when aggregate inflation was about 0.4%”, said O’Callaghan.

The increase in price has been approved by ComReg which has a statutory obligation to ensure there is a universal postal service available in the State at an affordable price and for the benefit of all customers.

“By permitting such significant increases in postage rates during the past 15 months, ComReg has not paid sufficient regard to keeping postal rates affordable. In order to prevent ongoing price increases by An Post, the Communication Regulation (Postal Services) Act 2011 needs to be amended by inserting into Section 24 a provision which caps increases in stamp prices to the rate of inflation. I am calling on new Minister Alex White to act now to control these excessive increases. Without amending legislation, there will be ongoing price increases that will affect ordinary customers and businesses,” said O’Callaghan.