An Post current expenditure subsidy
The Minister confirmed a £5 million current grant in 1984 but no grant for 1985, saying the transitional subsidy was no longer needed and that rising postal volume and revenue would sustain services. He rejected a hypothetical question about replacing possible price increases with a subsidy.
Can the Minister say if there was an application or an agreement with An Post for an annual current expenditure allocations?
Comment on this
The Deputy should be aware that it was acknowledged when the Posts and Telegraphs Service Bill was drawn up and was going through this House that there would be transitional difficulties between the State Department and the commercial semi-State company. For that reason provision was made in the Bill for a transitional subsidy for An Post. That will not be necessary this year or in subsequent years.
Comment on this
Is the Minister saying that there will not be an increase in the cost of the An Post activities in the absence of this current expenditure grant from the State?
Comment on this
There has been no increase in the normal postal rate since I became Minister. As a result of my insistence postal volume and revenue is up. My policy is for price stability so far as possible in order to increase volume. If the volume increases sufficiently there will be adequate revenue to keep the services going.
Comment on this
If there is an application during 1985 for price increases for An Post activities will the Minister replace that price increase for the consumer with the exchange subsidy that was agreed?