Australia Post will establish a new industry working group to ‘support the implementation’ of its upcoming mail changes and ‘consider other strategic issues facing the postal sector’.
Changes the group proposes to discuss include planned bulk mail price hikes, raising the cost of a stamp to $1, and the two-speed delivery timetable.
The mail carrier says this follows the recent Senate inquiry which recommended the establishment of a formal working group of industry stakeholders.
The group, to be chaired by former Victorian Senator Helen Kroger, will include representatives from the printing industry, mailhouses, licensed post offices, employee unions, and others added as required.
[Related: More Australia Post news]
Post says it is ‘committed to a thoroughly consultative approach to letters reform’ and will hold the first working group session before October 12.
Post’s move comes as the PIAA calls on new Prime Minister Malcolm Turnbull to develop a ‘structured adjustment plan’ for the mailing industry in line with the Senate inquiry.
The inquiry’s recommendations include restoring ACCC oversight of business mail price changes, an independent review of Post’s community service obligations, and forming a postal strategy group – the recommendation Post is now following.
Chief executive Jason Allen says the association has engaged economic consultants to prepare its response to Post’s ACCC application to raise its prices from January.
“We will be illustrating the impact of Posts’ 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,” he says.
“We will be highlighting the impact on a $14.1bn 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 accepts structural change is necessary to take advantage of technological innovations.
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It seems like the lunatics are in charge of the Aust Post asylum…so many mistakes on so many levels
1) The horse has bolted and now they want to setup an industry consultative committee…what’s the point!
3) I get that mail volumes are down and that costs are up. Strategy 101 in this market situation is to reduce costs and increase (or at least hold) volumes. Adding an extra service standard adds complexity & thus adds cost and a 48% price rise will decrease volume. Double whammy or dumb and dumber.
3) Look after your customers is business management 101. These galahs have to be told by a Senate committee that they should work with their customers…and the AP boss gets payed how much?
Too little, too late. As usual.
An alternative approach to this that nobody is discussing… If Post cant provide an economic service, then remove the addressed monopoly and get out of the way. Salmat and PMP can get unadressed mail to mailboxes twice a week for tuppence. Maybe others could too, at least in metro areas. Admittedly the bush will be difficult and new entrants will leave the hard bits to Post. But when in doubt – let the market decide. If direct mail truly is cost effective, and not just subsidised, then deregulation will prove it.
One problem ‘unions’. Look what happened last month on the ports once there was a start made to reduce staff/cut costs to become more profitable.