An Post chief executive Mr John Hynes retired yesterday, expressing frustration with the regulator, ComReg, and certain trade union factions within the company

Mr Hynes (58) told The Irish Times on his departure that, while he was leaving the company in "good shape", the refusal in recent years of ComReg, headed by Ms Etain Doyle, to grant An Post a price rise was very disappointing.

The former ESB director, Mr Donal Curtin, replaces Mr Hynes and begins work on Monday. The company's results are expected to be published later this month.

Mr Hynes said, while these results (covering 2002) would include high losses, the firm was still growing and had little debt on its balance sheet.

He said the infrastructure used by the firm was also relatively new and growth in mail volumes continued unlike other postal firms in Europe.

He said that, while he was looking forward to life outside An Post, he believed the company would continue to face financial pressures until a price rise was granted. He said the price of 41 cent for a stamp had been in place for several years and it was costing the company dearly.

"The whole thing was handed over a few years ago to an independent body. One would have thought they would have given us a price rise based on the figures, but it hasn't happened and that is bad news for the company, it is disappointing," he said.

Mr Hynes said An Post was working off very small margins and the lack of a price rise represented a major handicap. He said it had to support businesses with losses of 25 million each year, with the post office network itself losing about 10 million.

Asked for the two things that frustrated him the most in his 13 years at An Post, Mr Hynes said "single-issue lobbyists" and certain factions with the trade unions.

"I found it immensely frustrating dealing with single-issue lobbyists who totally disregarded the bigger picture - people who wanted certain services provided but did not understand or appreciate the resources available," said Mr Hynes.

He said relations with the unions at An Post could be difficult. "All trade unions are made up of interest groups, but certain factions within unions can make things difficult. They can trash something that has been previously agreed. They can put their hands up and say I'm holding this up, I am not fixed up and the whole thing can be delayed for months," he said.

Mr Hynes, who intends to take up consultancy work, was blunt about the challenge facing firms like An Post internationally.

"We now exist in a single European postal market. This market is going to become like the US postal market with two or three players controlling the whole market. . . it is obvious that An Post is going to need to enter an alliance or find a partner."

He said the German postal company Deutsche Post was listed on the stock exchange and the Greek postal service had sold off 10 per cent of its equity.

Asked would there be anyone interested in forming a partnership or buying into An Post, he said: "Yes, of course there are people interested."