TSA concerned over AusPost reform

Two Sides Limited has a growing apprehension over the AusPost reform package that resigning CEO Ahmed Fahour implemented.

Kellie Northwood executive director says she is concerned that the next CEO will simply continue implementing the Government approved Reform package, which automatically allows business post price increases so long as it is within the basic postal rate.

“The changes at Australia Post, with the resignation of Fahour from his role as CEO, may offer some opportunities for the print and mail industries, however we approach with considered caution. The reform package Fahour has been implementing is part of an agreement made with government when Australia Post pushed through its argument that the company needed significant amendments to combat mail volume declines,” Northwood says.

Northwood says the myth that the Reform was a one-off price increase or linked only to Fahour is incorrect, it is ongoing and based on many factors.

“TSA is concerned that the next CEO will simply continue implementing the Government approved reform package which automatically allows business post price increases so long as it is within the Basic Postal Rate. With the basic postal rate now at $1, this is of great concern,” she says.

[Related: TSA stamps out 70 per cent of paper claims]

Northwood highlights other areas of the reform package that need attention.

“The government has not incentivised Australia Post to grow mail volumes or promote the channel which are significant flaws of a monopolised entity.

“Further, whilst the Government – under industry and stakeholder pressure – did ensure Australia Post commit to undertakings, there was never negotiation for appropriate notice periods to industry nor scheduled and balanced price structures based on operational efficiencies or profit-share across other Australia Post business channels.

“These areas remain under contention and the industry must continue to engage,” she says.

“Next week TSA will be submitting, these and other elements of how the industry can work within the Reform structure to Australia Post for their response, it is an ongoing and critical industry discussion,” she adds.

Fahour resigned last week denying it had anything to do with his $5.6m salary package, 10 times the amount Australian prime minister Malcolm Turnbull receives. He will be leaving his position in July. 

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