PVCA DEMANDS AUSPOST CHANGES
PVCA says Australia Post needs to introduce pricing stability, promote business mail, and engage with industry and stakeholders, in order to meet the needs of the print and mail industry, and the wider community in its Letters business.
The print industry employers association called on AusPost to address the three “key issues” in its submission as its response to the government consultation into the modernisation of the Australian postal service.
The submission came from the Mail Industry Coalition, which PVCA built with some thirty mail businesses, as an industry voice across all Business Mail products. The Coalition has been meeting weekly with insights developed across operational efficiency gain opportunities, international postal service investment to Business Mail and trends analysis to investment and volumes.
Kellie Northwood, CEO of PVCA expanded on the three key issues, saying, “Pricing stability has a direct impact to volume stability, this simply cannot be denied. We know Australia Post and future forecast models across cost impacts and volume assessments, these insights can be applied to a forecasted pricing model which industry and Australia Post can work in partnership across. Forecasted pricing models can assist industry in their assessments across commercial investment to capex, employment and other development of their business.
“The current Stakeholder Committee does not have an industry representative, however industry represents 90 per cent of the Letters volume. We need remedy to this and finally we need to let our customers know how effective the channel is.
“Mail is a marketing media channel like many others, building efficacy research and training is just as important as publishing, television, radio and other media sectors that provide media currencies and metrics to their advertisers."
Industry analysis of client volume retraction to demonstrate the criticality of pricing and service stability was also developed, and more initiatives to reduce operational cost and improve serviceability of the sector.
To assist the submission, the PVCA issued an Australia Post Industry Survey to the print and mail industries, which drew a significant response rate. Statistics demonstrated that 77 per cent of members highlighted that pricing instability directly impacts mail volumes, and that the volume impact is a volume reduction of 40 per cent.
Some 88 per cent of industry do not believe Australia Post is providing balanced business investment into the Letters Business, and 84 per cent have not seen Australia Post promoting the mail industry.
Volume incentive discounts to new volumes or entrants was seen as the highest opportunity to offer value, with some 86.5 per cent citing it, followed closely by stable and consistent pricing at 78 per cent.
“Given the time constraints for providing the submission, forming the coalition of mail industry related members got to the heart of the relevant issues and we drafted a submission that covered not only those issues being faced by the Business Mail channel, but also a broadly detailed range of modernising solutions that could be recommended to government and Australia Post,” commented Northwood.
The PVCA called on government to recognise the vital role that the postal service provides for Australian citizens as societal trends shift and new communication channels emerge. The industry emphasised the importance of the community network of post offices and posties across Australia, both regional and metropolitan, and the significant economic contribution of the 258,000 Australians directly employed across the sector and the additional 122,000 indirectly employed.
The submission encouraged the consideration of pricing and operational improvements to the societal balance and role the postal service provides for all Australians.
The submission also cited the high level of digital scams and identify theft via non-Mail channels sitting at 99.35 per cent and Mail versus Digital realising 54.6 per cent digital and 0.65 per cent mail from the recent ACCC Scamwatch data across Australia. “We firmly believe the letterbox channel has a bright future if appropriate effort is put into the channel. The letterbox's accessibility to all Australians, regardless of socio-economic status, provides increased comprehension opportunities and bridging of the digital divide for our most defenceless citizens. We believe that modernisation efforts should not overlook the societal benefits and contributions of the postal service, and we urge the government to recognise and prioritise these benefits in their strategy,” furthered Northwood.
The PVCA outlined a support for amendment to Community Service Obligations and Legislative restraints Australia Post currently operate within, however not with complete abandonment, rather with revised compliance structures and a higher level of industry engagement and oversight.
In pricing stability PVCA is seeking a multi-year forecast to pricing for all Business Mail products.
For industry and stakeholder engagement PVCA is seeking the development of a Mail Industry Stakeholder Committee within Australia Post, which works with the Letters Business, and carries a reporting line into the Executive, Australia Post Board and Government Ministers.
In regard to Business Mail Promotion, PVCA is calling for Australia Post to match dollar for dollar investment from industry across mail channel promotion to retailers, marketers, charities and investors in the channel.
The Executive Summary and Key Recommendations of the submission has been released and can be found on the pvca.org.au homepage.
“We are here to work with Australia Post, and through this process have been working with the Executive level regularly, which is welcomed, and we continue to look to solutions together. It is the PVCA’s position that a modern postal service cannot be achieved without Australia Post and industry working together. I look forward to our continued insights for government, but most critically to an ongoing and productive partnership with Australia Post,” concluded Northwood.