Australian Post gets open slather on prices

The government has officially removed ACCC oversight from all of Australia Post’s pricing, with the exception of reserved mail, the so-called ‘grannie mail’.

The decision by the Department of Broadband, Communications and the Digital Economy comes after months of deliberation, following calls for submission by those in the industry. A notification announcing the decision was sent out today to those organisations that provided submissions Printing Industries, MMUA and ADMA.

The decision will hurt the direct marketing community and the major mail users who fear they will be bled to subsidise the universal requirements of the failing ‘grannie mail.’ The move to exempt reserved mail is seen as a way of avoiding public opposition to unchecked monopoly pricing.

According to Printing Industries CEO, Bill Healey (pictured), there is every chance businesses will lose out if the mail monopoly raises fees beyond a fair level. “We’ve just got to make sure Australia Post doesn’t abuse the privilege they’ve been given.

“The fact that the powers been removed doesn’t mean they will unreasonably raise prices, what they’re saying is its stifling their ability to innovate. Hopefully it has a positive impact,” he says.

John Gillroy, CEO of Major Mail Users of Australia (MMUA), expects Australia Post to waste no time in jacking up prices. He forecasts, the next price increase will be seen on the first of January next year.

Gillroy describes Australia Post’s decision to retain ACCC checking of ‘granny mail’ as a “clearly cynical political move on the part of the government to avoid public criticism on postage price increases as Australia Post will be able to make up revenue shortfalls on its monopoly mail by increasing business mail whilst retaining the 60 cent postage price in the public’s eye.”

An explanatory statement included in the government’s Price Notification Declaration (Australia Post Letter Services), says that:

“Given the increased competition and the greater choice of communication media – which has lessened the dependency on Australia Post’s discount letter services—the Department of Broadband, Communications and the Digital Economy conducted a regulatory impact analysis in relation to reducing the scope of Australia Post’s letter services subject to ACCC prices surveillance.

“As a result of regulatory impact analysis, the Australian Government has decided to limit the ACCC’s price surveillance of Australia Post letter services.”