Australia Post has announced it is increasing its business mail prices, with PIAA CEO Andrew Macaulay saying it is a ‘slap in the face’ not only to the government but the mailing industry.
The monolopy says it has not yet decided on the level of price increase, which will come into play in July. The level of rises will be announced in May.
Macaulay says, “The parting decision by Australia Post’s outgoing CEO to increase business mail prices in July 2017 is a slap in the face to both the Government and to Australia Post’s biggest customer sector, the mailing industry.
“Once again, the process has no transparency, Australia Post has no accountability, business is deprived of the opportunity to do any sensible planning around the increases and Australia Post’s claims to the contrary are specious,” he says.
These increases come after prices rose 40 per cent in January 2016 and once again with above-inflation increases at the beginning of this year.
Macaulay says the federal government knows this price rise is wrong.
“Federal ministers Fifield and Cormann are in no doubt about our views that this conduct is unacceptable and damaging. We are now ramping up our concerns with Government and using Ministerial support to get to meet with the new CEO of Australia Post as soon as they are appointed,” he says.
[Related: Auspost profit soars, letters decline]
Australia Post is contacting its bulk mail customers, telling them, ‘We are reviewing our business letter pricing and can advise that business letter prices will increase at the beginning of the new financial year.’
Australia Post’s communication also says ‘We are providing you with the attached pricing guidance. I am sharing this with you on a commercial in confidence basis to enable you to consider the new prices as you plan your business activities for the financial year ahead. We are currently working through the changes and detailed pricing tables will be communicated in May.’
Macaulay says, “Post is simply going for the easy hit on its biggest customer segment to prop up its revenue without any formal or independent approval, which the ACCC used to have to give. In propping up its own inefficient operations, Australia Post is slamming its business mail customers with more costs, risking irreversible damage to the mailing industry.
“It is fair to ask whether Australia Post is planning to price mail out of existence; whether when there is no longer an opportunity to gouge the mailing industry, will it again attack other consumers. At the point where the well is empty, will mail simply shut up shop, or will Australia Post’s social charter kick in, albeit too late?”