Gov't subsidy to postal department increased by 51%

Racking up annual operational deficits averaging $529 million, the Post and Telecommunications Department has increased its reliance on Government subsidy which rose by 51 per cent, according to the Auditor General’s Department in a performance audit of the public postal service in Jamaica.

The increasing level of subsidy runs counter to the Government’s plans for the department to become self-sustainable and off the national budget.

In 2014, the department conducted an analysis of its 298 post offices and the Central Sorting Office in Kingston which revealed that 263 post offices or 88 per cent were operating with deficits ranging from $27,000 to $31 million.

The Central Sorting Office recorded a huge deficit of $62 million.

The agency has since reduced the number of post offices it operates moving to 263 in 2018 from 299 in 2014.

The department was unable to provide information on the cost savings realised from the reduction.

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