Powerful industry figures have joined forces with the PIAA to call on the Government to develop a structured adjustment plan for the mailing industry to ensure its future sustainability. The meeting of major printers and mailhouses in Sydney and Melbourne comes as Australia Post asks the Australian Competition and Consumer Commission (ACCC) to allow it to raise mail prices by up to 48 per cent in January 2016.
Jason Allen, PIAA CEO
Jason Allen, PIAA CEO, says the association has commissioned a paper by respected economic research consultancy ACIL Allen, aimed at presenting the facts on the size and economic importance of the industry to the Australian economy. This research had been sent to politicians during the past week as part of the campaign. He says economic consultants were being engaged and funded by the industry to prepare a detailed response to the ACCC Discussion Paper. Allen says, “We will be illustrating the impact of Post’s proposals on the complete value chain, covering the mailing industry and its many clients who use mail because of its effectiveness, but face being priced out by a 42 per cent increase in mailing costs. “We will be highlighting the impact on a $14.1b industry employing some 131,000 people and the flow-on repercussions to the economy and to the community.” Allen says the mailing and printing industry accepted that structural change was necessary to take advantage of technological innovations. “We actively encourage our new Prime Minister, Malcolm Turnbull, and his Ministers to urgently address the issues we have highlighted and which the Senate Inquiry into the Performance, Importance and Role of Australia Post has recommended. Those recommendations that are relevant and PIAA will be focusing on are: Recommendation 1 Australia Post be required to submit prior notifications of changes to the price of business mail services to the Australian Competition and Consumer Commission. Recommendation 2 The Minister for Communications undertake a thorough examination of cost allocation within Australia Post and report back to the [Senate] committee. Recommendation 4 The Commonwealth Government immediately commission an independent review of the community service obligations contained in the Australian Postal Corporation Act 1989 and associated regulations including: • the future of mail delivery services be assessed; • the number of retail outlets required in the network be assessed; • the effects of any changes to the community services obligations on Australia Post employees, Licensed Post Offices, Community Postal Agencies, franchisees and mail contractors be investigated; and • consideration be given to the needs of remote, rural and regional communities particularly where other service providers have ceased to operate. Recommendation 6 The Minister for Communications form a formal postal network strategy group that engages all stakeholders in the development of a comprehensive strategy to inform changes to the Australia Post network in the face of emerging challenges. As the next step Allen says Printing Industries would be making a substantial industry submission to the ACCC and assisting other interested parties with individual submissions in time for the Thursday, October 15, 2015 deadline. Australia Post is set to increase small pre-sort mail by 37.5 per cent for regular service and 48.5 per cent for priority. At $1.08, priority residue mail will cost more than a basic stamp. 70 per cent of presort is sent on regular. The new promo post, used for direct mail campaigns, will have a less painful 24.6 per cent hike, but can only be run on the regular timetable. It makes up about 2.8 per cent of mail volume. Print post is due to have an eight to nine per cent hike already scheduled for October – priority is up 15 per cent for under 125g and 13 per cent for the rest, with regular small up 13 per cent and the rest 11 per cent.
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