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New Postal Rates 29 February 2008

For the first time in two years, Isle of Man Post Office has announced an increase in local postal charges with the cost of a local letter going up by 2p to 30p while the cost to send a letter to the United Kingdom remains unchanged at 31p. Despite the increase, these basic letter rates continue to be significantly cheaper than that of our counterparts in the UK and Channel Islands.

There’s also two pieces of good news: friends and family of HM forces personnel can continue to send their loved ones standard letters and parcels up to 2kg to any British Forces Post Office addresses (BFPO) free of charge and there will be a 2p reduction in the local rate of postage for Christmas cards and letters with stamps on posted from December 1, 2008 until the advertised last day of posting before Christmas 2008.

The cost for international mail has been simplified with a single tariff for Rest of the World, replacing the Zone one and Zone two categories. This change has made the cost for sending mail to Australasia, the Far East and Pacific destinations cheaper.

Airsure and International Signed for prices will be held this year while the rates for Special Delivery, Airmail, International Surface Mail and ancillary services which includes business reply and freepost will increase with effect from April 1, 2008. The overall affect of the price changes equates to an increase in postage income of 3.6% for Isle of Man Post Office, significantly less than the projected rate of inflation.

The new prices promote Isle of Man Post Office’s strategic objective of simplifying tariffs and continues to maintain the principles of Pricing in Proportion which was introduced in August 2006. The changes to large letter and packet prices further reflects the policy of aligning public tariffs to the cost of collecting, sorting and delivery of large and bulky items.

Chairman of Isle of Man Post Office, Pamela M Crowe MLC, said:

“It is always a matter of regret when we are forced to increase our prices but I am afraid that increases in our costs make them unavoidable. The overall increase is less than inflation rates and 45% of postings are unchanged. We continue to provide a high quality service and our prices remain competitive in comparison with the United Kingdom and substantially lower than those in Guernsey and Jersey.”

She added:

“Following a recent major restructure of the business, Isle of Man Post Office is addressing its business methods, aiming for increased revenues to ensure long term sustainability and growth.”

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