VMA declines to submit postal consultation paper to ACCC

The Visual Media Association (VMA) has declined to submit a consultation paper for the ACCC Postal Consultation currently in place, saying it is “disappointed in the ACCC’s approach” to the process.

The ACCC Postal Consultation is an annual consultation process for reviewing Australia Post’s proposed price changes.

VMA’s contributions have thus far included detailed and substantive submissions that articulate the effects of proposed stamp price increases on its members, their clients and consumers, as well as highlighting related concerns over claims made by Australia Post relating to cost recovery.

However, as these efforts were met with limited engagement and response from the ACCC, the VMA has been left “disappointed in the process’ responsiveness and effectiveness”.

In addition, it noted the ACCC’s current stakeholder survey is insufficient for gathering meaningful insights on a matter of this significance.

It also identified the consultation period, which closes on 22 December, “fails to account for the operational realities of an industry with peak activity during Easter, Christmas, and major sporting events”, stating this timing undermines the ability of stakeholders to provide considered input and reflects a flawed approach to build genuine insights.

VMA CEO Kellie Northwood said in protest to the “disingenuous process from the ACCC”, the association has declined to submit a consultation paper.

“The Mail Industry Coalition (MIC) has submitted substantive submissions historically across postal service consultations, to both Australia Post, the minister, department, and ACCC. Throughout the history of such engagement, we have built credible data and insights for relevant stakeholders into the industry,” she said.

“Promo, Charity Mail and UMS successes have been recognised; however, this recent consultation by the ACCC is limited and the survey issued is insufficient to address the complexities of the price notification and industry being proposed by Australia Post.

“As such, the MIC has rejected participation and advised both the ACCC and minister of this decision and our rationale for it. Should the ACCC reconsider its approach to a more genuine investigative consultation, we will review our decision.

“However, the industry cannot continue to submit documentation which therefore credits the process, when the process is flawed.”

In the submission letter to the ACCC, VMA outlined that it is the peak industry body with its members forming Australia Post’s largest client base, and that the MIC represents approximately 70 per cent of the mail and distribution sectors.

“This was not a decision taken lightly. We are actively engaged in all areas of government that impact our industry. However, we simply cannot condone a process that, respectfully, carries a sense of ‘rubber stamping’,” Northwood added.

“The ACCC is obligated to explore all impacts, and we are calling on an improved process across this matter. There does come a time when the industry must make a stand, and in regard to the mail sector, this is indeed the moment. Our industry deserves full and accurate exploration from the ACCC across these important matters.”

The VMA has urged the ACCC to enhance its consultation framework to better understand the impacts of proposed stamp price increases to include broader public promotion of the consultation process and more direct engagement with industry stakeholders.

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