ACCC should control Australia Post prices

‘A major victory on behalf of the printing industry and public,’ is how Bill Healey, CEO Printing Industries, describes the findings of a Parliamentary inquiry into the operations of Australia Post.

Reinstating independent oversight of the monopoly’s pricing practices is the primary recommendation of the Federal Government’s Environment and Communications Legislation Committee report released this week. It also wants the Minister of Communications to undertake a thorough examination of cost allocation within Australia Post to identify where the monies are made and where they are spent.

Healey said that while the poor support of licensed post offices (LPOs) was the initial catalyst, the inquiry opened a Pandora’s Box of issues for Australia Post that included its pricing structures.

“The Committee’s number one recommendation was: . . . that Australia Post be required to submit notifications of changes to the price of business mail services to the Australian Competition and Consumer Commission.

“This is major victory for our industry, for the future of printed communications and for the community at large.

“Many of our members have invested heavily in technology and equipment for pre-sorting, saving Australia Post significant amounts of money on the basis of receiving lower pricing for bulk mail than for ordinary mail, only to have those margins eroded,” said Healey.

“Its Trojan Horse approach to industry consultation on this issue has been exposed for the sham it was. It’s now time for them to be pulled back into line and to be subject to ACCC scrutiny.”

He was scathing on how some of Post’s own research on mail volumes and consumer preferences contradict its own assessments on the decline of mail. It has used these assessments to justify its pricing strategies.

“It is time that Post worked with industry stakeholders and the community to develop a clear strategic direction for the future of mail services rather than misleading the Australian public on the continuing effectiveness and demand for traditional mail.

“Our efforts over this lengthy period have been fully vindicated. This is a very significant day for us and for the ongoing sustainability of our industry members involved in the printing and mailing of bulk mail items,” said Healey.