AusPost annual report undermines mail crisis claims

Australia Post's Annual report shows that CEO, Ahmed Fahour’s claim that mail volumes are in free-fall is not correct, according to the alliance representing employer groups and unions.

“The annual report clearly shows that mail volumes are falling at a manageable 5% a year, not the 12 % claimed by Australia Post in the BCG report released in June”, said alliance spokesperson and Printing Industries CEO Bill Healey.

“While we all recognise the challenges facing the mail industry, a decline of 5percent is not the crisis that the Australia Post CEO would like the Australian community to believe it is,” Mr Healey said.

“It is also important to note that the underlying profit reported by Australia Post, before one off costs such as restructuring, is actually up by over 10 per cent to $518 million,” he said.

The alliance brings together business groups representing printers and mail houses including Printing Industries Association of Australia, Licenced Post Offices (LPO Group) and unions the Australian Manufacturing Workers Union (AMWU), Community and Public Sector Union (CPSU) and the Communication Workers Union (CWU).

“Our organisations have come together to voice our concern about the future of Australia Post. Australia Post has failed to outline a clear strategic direction on how it intends to deal with the challenges resulting from the emergence of the digital economy," Mr Healey said.

“To make matters worse, Australia Post is deliberately ignoring the views of the Australian community and the findings of their own research."

An Australia Post consumer survey found that:

• 85% of people read their mail on the day it is received.
• 98% of people open their mail compared to only 20-25% for email.
• 67% of people still prefer to get their bills and bank statements through the mail and this figure is increasing.

The Alliance is calling for:

The retention of all of Australia Post’s existing community service obligations.

The restoration of ACCC oversight of price increases in bulk lodged mail and the monitoring of service standards, as is currently the case of with Post’s community service obligations.

The establishment of a bipartisan round table also involving all industry stakeholders to examine options for Australia Post’s future with oversight of proposals and outcomes by the senate communications committee.

“It is time Australia 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,” Mr Healey said.

“Greater oversight is required of the management of Australia Post to ensure that a significant public asset is not irreparably damaged."