An Post chief executive David McRedmond has expressed his fury at what he described as the “irresponsible leak” by “a Government Minister” into the finances of the company.
Minister for Communications Patrick O’Donovan later denied he was the source of the leak and insisted An Post is a “very viable” and “profitable” company.
Media reports had said that the Cabinet was briefed on Tuesday on the bleak financial realities facing the State’s postal service.
One media report suggested the Cabinet was told that without the significant once-off revenue generated from election-related posts last year when general, local and European elections were held, the organisation would have made a substantial loss.
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That was “simply not true”, Mr McRedmond told RTÉ radio’s Morning Ireland.
“It was an 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.
“I’m absolutely furious to read something like that. The company presented its results, the results were presented to Cabinet yesterday. They showed the highest revenue we’ve ever had, over a billion in revenues for the first time.
“They showed that we grew our earnings from €38 million to €55 million. They showed 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 operator in Europe. So I just don’t understand it.”
Mr McRedmond acknowledged that An Post had received a boost from the elections last year but said that if it had not been the elections “it would be something else”.
“Yes, we want more cash because we’re growing so fast, because we’re growing in commercial parcel markets. We used to get paid for everything up front 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 talked to Government about that, but this is all coming from a position of strength.
“The thing that annoyed me about the report is it talks about a report from New Era, a report from somewhere. They’re all just reports of reports. I have audited accounts. It’s a wholly different level of a wholly different standard.”
Mr McRedmond also denied a claim that An Post’s cash reserves had fallen to below €1 million.
He said he had concerns about An Post’s 10,000 employees reading a negative article about the company but also how its customers would react.
“If they read this morning that An Post is on the brink, they’re going to think, ‘well, maybe we should go with someone else’. So it’s reckless in the extreme.
“I’m talking to Government advisers. I hope there’s just some big misunderstanding somewhere. And the company, as I say, is doing really well. Yes, I am very clear that we say we want our borrowing cap lifted, which was put in place in 1984 – so it’s way out of date.
“And we need greater flexibility on our working capital. We need some things like that. We want Government to approve certain changes to regulations. These are normal conversations, coming from a position where the company has had one of its best years.
“We have no plan to close post offices. None,” he added.
Later, during an interview on RTÉ’s Today with Claire Byrne, Mr O’Donovan denied he was the source of the leak and he said he agreed with comments made by Mr McRedmond that it was unacceptable.
Mr O’Donovan said he brought An Post’s accounts to Tuesday’s meeting and would not break “Cabinet confidentialities”.
He added that Mr McRedmond is “absolutely right” and that “An Post has been transformed over the last number of years under his leadership”.
Asked why someone in Cabinet would brief journalists that An Post is in an “awful state”, Mr O’Donovan replied: “Maybe if the person who said that put their name in the paper, you should be asking them.
“What I can say, as a shareholder, is An Post returned a profit last year.
“You know, they’ve had some challenging years. There’s no doubt about that,” he said.
He said some politicians are conflating issues at An Post with separate concerns raised by independent postmasters who have raised the need for increased State funding .
“It’s totally separate. But some people who don’t understand that have conflated the two things, put them together, added two and two, and came up with seven.”
He also said that all postal services around the EU “have been challenged since Covid and next day delivery services have been challenging for all postal services.
“But An Post has done something that most of its opponents around the European Union are looking on with green eyes, saying, how did you manage to do this bit?
“They’re becoming one of the leaders in Ireland in terms of parcel delivery and that’s where their future is.”
He said Mr McRedmond “has done an excellent job, notwithstanding the financial difficulties that are there.”
Asked about suggestions in media reports that An Post may have to scale back the days on which post is delivered or cut back on the number of on post distribution centers, Mr O’Donovan again said he would not discuss what he said at the Cabinet meeting.
Pressed on whether these kinds of choices are on the agenda, Mr O’Donovan said: “No, they’re not.”
He also said An Post is a “very viable” and “profitable” that he has “full confidence” in the company and denied it was teetering on the edge.
