Free from any restraint or oversight by the ACCC, the national monopoly mail carrier is continuing its strategy of milking the commercial mail sector with price hikes.
In the latest round of increases the cost of both of the levels of mail service, – regular and priority – is going up effective in March.
Pre Sort Letters – Regular
- Small Letter up to 125grams – increase 5.4%
- Small Letter Plus up to 125grams – 7.2%
- Large Letter – all weight categories – increase between 6 – 7%
Pre Sort Letters – Priority
- Small Letter up to 125grams – increase 6.4%
- Small Letter Plus up to 125grams – 6.8%
- Large Letter – all weight categories – increase between 4– 7%
Print Post Service –
- Print Post Regular Mail service will increase by 3% on article rates
- Print Post Priority Mail service will increase by 7% on article rates
- There will be no line haul increases.
The latest increases come despite calls by the industry to suspend Australia's unfettered ability to plug its revenue shortfall at the expense of direct marketing and commercial mailing. According to BIll Healey, CEO Printing Industries, Australia Post cannot be left to run down its postal services through price hikes as it ignores the need for greater efficiencies and pursues a digital mail strategy.
“Post can’t be allowed to price increase its way out of difficulty just because it has a monopoly. All this does is discourage use of mail by businesses and individuals which in turn drives down mail usage rates – the very issue Post has done and is now complaining about,” he said.
Research released in 2013 shows clearly that catalogues and flyers and personalised direct mail outranked email and social media as more effective channels for advertising. Healey maintain that this means the actions by Australia Post are working against the broader community.
“The success of the mail channel in a multi-channel communication world is heavily dependent on maintaining cost competitiveness with other delivery channels. Our view is that the full potential of this channel is being stifled because of the Post’s high cost structure.
“We have met with the Minister for Communications, Malcolm Turnbull, and have an undertaking from Post to consult with its stakeholders, but so far this has been very limited – and the clock is ticking.
“It is essential that any reforms are not implemented in isolation. There are much broader ramifications on the economy and on the sectors that work with Post to produce, prepare and ultimately help deliver mail in all its forms. Post needs to talk to engage these stakeholders if it is to be successful in running an efficient and viable mail service,” said Healey.
Changes to the artwork on enveloped and flysheets for any company wanting to access the new 'priority service' for Print Post (which is effect is simply the same service from previously but at a higher rate), is also required in March.