€1 stamp price will kill Christmas cards - TD

It's early for Christmas but one local TD is thinking beyond the tinsel and wrapping paper, to what she believes is a time-honoured tradition due to come under threat as a result of the planned €1 hike on the price of a postal stamp.

Voicing the concerns of her constituents, Cavan-Monaghan Fianna Fáil Deputy Niamh Smyth asked Minister for Communications, Climate Action and Environment Denis Naughten to address fears that the increase in price will 'be the death of sending the Christmas cards and letters'.

She also suggested that the new higher price would deter persons using stamps and further affect revenue at An Post.

But Minister Naughten said that the Communications Regulation (Postal Services) Act 2016, which will enable An Post to implement the proposed price increases, has been signed into law.

'The mails business is undergoing a profound structural change both here and internationally. Electronic substitution has had a significant impact on the letters business. This development is particularly apparent in terms of large volume postal customers such as banks and utility providers,' he said, explaining that this has had a serious financial impact for An Post.

However, noting that he is 'extremely cognisant' of the value placed on the service by communities in both rural and urban areas, he expressed the belief that the legislation was the most viable option for supporting An Post in the short term while a restructuring plan is developed and implemented.

'This is not a decision that was taken lightly,' he said, adding that a recent in-depth review of the company showed that 'pricing is playing a significant part in supporting the continuation of daily postal services'.