The survey also found that 77 per cent of respondents believe the proposed price increases will drive their clients to alternative marketing channels, while 93 per cent believe that Australia Post has not full exhausted its cost-based responses to declining letter volumes.

The survey was part of a response to the Australian Competition and Consumer Commission (ACCC) in opposition of the Australia Post’s latest application, which seeks to increase the basic postage rate (BPR) by 5c, from 55c to 60c, and to increase the prices of large ordinary letters, small ordinary letters, small presort letters and large presort letters.

The Association has criticised the application and called on the ACCC to defer its consideration until Australia Post has completed a current review of its business model and those findings have been made public for scrutiny and comment by stakeholders.

Hagop Tchamkertenian, national manager for policy and government affairs at Printing Industries says, “The fact that Australia Post is now admitting it is ramping up its efforts in cost reduction to address further declines in letter volumes, demonstrates that it has once again opted for the easier option of requesting price increases for services it enjoys a monopoly with rather than implementing cost savings and working towards efficiency gains.”

He continues, “We believe that mail and printing companies which have had to undertake an increased workload and compliance costs in dealing with Australia Post for the sake of greater efficiency should be compensated.”

A decision is expected from the ACCC on 28 May 2010.

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