Printing Industries chief executive Philip Andersen (pictured) told ProPrint the industry body has been holding “ongoing discussions” with Australia Post over the touted price hike, and that it will now be taking its concerns to the federal government.

Australia Post advised the mailing industry earlier this month that it was instituting a price rise from July 6, lifting rates by 3.9 per cent for parcels, 3.6 per cent for Print Post and 3.1 per cent for line-haul charges.

“We’re concerned about the quantum and the timing of the increase,” said Andersen.

“We understand that it’s a difficult time for the industry, and had hoped that a government instrument could have done more to moderate the level of increase on this occasion.”

“We’ve argued that they haven’t reduced their own internal costs sufficiently, and we think they should explore that further.”

Andersen agreed with Haymarket Media (publisher of ProPrint) managing director Jeremy Vaughan’s declaration that the move could “trigger the demise of print”, with publishers forced to move online to escape the cost pressures of print.

“If the costs of printing and mailing magazines becomes prohibitive, that may well be the outcome,” said Andersen.

The industry body has been accused of inaction over the issue on the ProPrint website, with one reader claiming to be “disappointed” with how the association engaged the government on such matters.

However, Andersen pointed to the difficulties of lobbying Australia Post over the matter, with Australia Post effectively allowed to self-regulate with regards to ‘non-reserve prices’. This is as opposed to ‘reserve prices’, for which they must obtain permission from the ACCC to raise.

The price hike has provoked howls of protest from publishers over the last few weeks, not only because of the additional cost pressures it will provide during the global economic crisis, but also the fact that the increase will come into effect months ahead of the traditional schedule.

In further news, executives from Australia Post will this week meet with a series of publishers – including Haymarket, Reed and Intermedia – to further discuss the issue.

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