An Post has applied to increase the cost of stamps from 48 cent to 55 cent. The State company is seeking permission from communications regulator Comreg to increase the cost of posting a standard letter within Ireland to 55 cent from 48 cent. Barry O'Halloran reports.

In addition, it wants to increase the charges for metered and bulk mail to 54 cent from 48 cent.

The company, which has a monopoly on some sections of the postal market, also wants to increase charges for parcels. It wants to increase tariffs for packets weighing between 50g and 100g to €2.10 from €2, and those weighing between 1 and 2 kg to €7.25 from €7.

Last year, Comreg refused to sanction a 12 cent increase in the cost of stamps to 60 cent. An Post unsuccessfully took the regulator to court earlier this year claiming that the refusal would leave it "balanced on a financial knife edge". The company said the refusal would cause it to lose €70 million in 2010. An Post warned that the refusal would cost it €6 million alone this year, €5 million in 2007, increasing to €30 million in 2008. The company lost a record €43 million in 2003, and has since put in a rescue plan that included a major redundancy programme. It has cut its workforce by around 600.

Comreg has responded to the request by issuing a consultation document.

Small business lobby group Isme last night condemned the application by An Post for an increase. "The decision, if approved by Comreg, will represent another significant hike in business costs on top of already increasing labour, energy, transport and local charges with businesses already reeling from significant business cost increases over the last number of years," chief executive Mark Fielding said.