An Post said yesterday the proposed seven cents increase in the price of a stamp may not be enough to sustain its business.

Mr Donal Curtin, An Post chief executive, said he expected the communications regulator to rule on its proposal to increase the price of a stamp to 48 cents in coming days. But he also warned there was no "soft landing for the price of a stamp" and further increases may be necessary. He added that the price of a standard stamp was at 1991 prices and the proposed increase to 48 cents reflected this. We are in a new business environment and the economy is not growing at the rate that it was, he said.

Mr Curtin said An Post had not bought any roadside post boxes to help it fulfil a controversial delivery strategy, which would see postmen deliver letters to these boxes rather than customer's doors. However, An Post will continue to have discussions with the regulator on the issue, he added.

A spokesman for the regulator said it was in the process of finalising a decision on the stamp increase, which would be published this week.