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Outrage over latest business mail price hikes

Thursday, 13 April 2017
By Print21

'They seem to have no idea what they're doing': Rod Peirce, owner Smartcomm

The mailing industry has reacted with shock and outrage to news that Australia Post is yet again planning to increase business mail prices, this time effective July 1.

“I just can’t believe it and I can’t understand how the government has allowed this to happen,” says Rod Peirce, owner of leading Brisbane mailing house and digital printer Smartcomm.

“It’s heartbreaking to keep getting these increases without any real justification and it’s got to stop,” says Peirce. “They don’t seem to care. You’ve got a guy at the top who’s trying to treat Australia Post like a bank. He’s made some major mistakes and now he’s planning to just walk away. The decline in mail is not because it doesn’t work, it’s because of the continual price increases.”

Peirce says the latest announcement from Australia Post has forced him to reconsider a major investment in state-of-the-art mail inserting machinery for his business.

“We know we need to keep investing in new technology and we’ve been looking at a piece of machinery worth $1m-$1.5m. But the whole thinking behind the investment is that mail volume will pay for that machine. Now, we just don’t know what impact this latest price rise will have, coming so soon after the last two. If we don’t have the mail, then we don’t have that machine.

“These guys at Australia Post are crucifying me. I’m being forced to consolidate my business and cut back staff. The underlying question in everything we do now is: what is Australia Post going to do next? And they seem to have no idea what they’re doing.”

PIAA CEO Andrew Macaulay says the parting decision by Australia Post’s outgoing CEO Ahmed Fahour to increase business mail prices in July 2017 is a slap in the face to the mailing industry.



3 Responses to “Outrage over latest business mail price hikes”

  1. April 18, 2017 at 1:44 pm,


    Rod, it sounds like you have a significant business, the number you quote for a considered equipment investment is not small. I’m not going to tell you how to suck eggs. I can tell you that as a trade qualified printer with some years of experience, on several occasions in the last decade I have had to find other sectors to earn a living in as I just couldn’t find a role in print. I have had to be flexible and at times adjust to severely lower wages.
    If you can’t pass these price increases onto your customers, well, maybe you won’t be buying that new piece of kit after all. Having read your comments again before pressing ‘submit’, I think you already know this.

  2. April 19, 2017 at 9:18 pm,

    Peter Plowman

    It is very clear that this government has no place for Australia Post . Clearly they are happy to run it into the ground . It explains the ridiculous high wages paid to the ceo and also to the board members . The fall in mail has been manipulated by price increases and slower and unreliable deliveries. The shortage of postal delivery workers is only getting worse , as people who leave are not being replaced . I can not believe an out going ceo is allowed to make any major , or in fact any decision is astonishing. The printing industry has been in decline from the day the liberal government removed the book excise. The decline in letters only adds to this problem . Does this government want increase unemployment to even higher levels ? And does it want to close down Australia Post once and for all , and if so why ?

  3. April 20, 2017 at 3:20 pm,

    Andy McCourt

    Well said Peter and sadly true. The architect of the ruination of Australia Post was Kevin Rudd but amazingly, aided and abetted by M. Turnbull when he was communications minister. Turnbull drinks his own Kool Aid because he made a few quid investing in Ozemail in the early days and in his mind, print is dead, borning, uncool and bothersome. Well, that’s what we think of you to Malco! Here’s a fact I learned today: 500g parcel from Germany to Australia sent to someone I know cost 8 Euros. Smaller packet the other way cost AUD$30. Now tell us what Deutche Bundespost is doing right and AP is doing wrong Mr Turnbull? It’s a public disgrace and I hope PIAA’s lobbying makes more $1million+pa AP heads roll. These economic vandals have made most good loyal PO workers casuals to the point where they can no longer even use their office to authorise identity documents as the law states only ‘permanent’ PO employees can do that. Shame, shame, shame.

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