Commenting on the decision – which will also see the basic letter rate rise from 55 to 60 cents representing an increase of 9.1 per cent – Philip Andersen, CEO of Printing Industries says it is now up to Stephen Conroy, minister for broadband, communications and the digital economy to intervene to stop the unjustified cost impost on the printing and mailing services industry.
He says, “Senator Conroy needs to heed the concerns of the industry and prevent this price increase from taking place. Last year the ACCC correctly rejected the price notification stating that it was concerned that Australia Post’s costs were not falling in response to declining mail volumes.”
Andersen continues, “We feel however that another contributing factor behind last year’s decision was the general business environment. While we have emerged out of the GFC crisis the business environment for our industry has not yet improved to the extent where it can sustain such unnecessary cost imposts.”
Meanwhile, Hagop Tchamkertenian, national manager for policy and government affairs at Printing Industries says the ACCC decision was done in great haste from the release of the Issues Paper, to the deadline being placed on submissions.
He says, “Today’s decision reconfirms industry fears that the whole process was a fait accompli and a charade from day one. Our submission clearly outlined the reasons why the 2010 price notification should be rejected. Printing Industries believes that Australia Post has not yet fully exhausted its cost based responses to falling letter volumes.”
Tchamkertenian continues, “We also believe that it is inappropriate for the ACCC to approve further price increases until such time that Australia Post’s current review of its business model has been completed and the findings have been made public.”
A recent Printing Industries survey illustrated potential negative consequences flowing from the postage price increases. Results included 77 per cent of respondents saying they believed that the postage price increases would drive customers to alternative marketing channels.
The increases would also affect industry profitability (82 per cent); lower production (59 per cent); reduce planned investments in mail fulfilment (52 per cent); lower employment levels (32 per cent); and place at risk the financial viability of businesses (27 per cent).
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