VMA BOYCOTTS AUSPOST CONSULTATION
The VMA’s Mail Industry Coalition has taken the unprecedented step of boycotting the latest ACCC Price Consultation process for proposed Australia Post price rises.
The VMA says the process has been reduced to a “rubber stamping exercise”, and says it is “disappointed” in the ACCC’s approach and has taken the step to boycott the consultation “in protest to the disingenuous process”.
The move takes relations between the print and mail industry and Australia Post to a new low, following years of Australia Post running down its letters service, riding roughshod over its letters business, and giving scant regard to the print and mail industry, as it focuses on parcels. AusPost’s strategy of cutting services and hiking costs is in stark contrast to its counterparts in other parts of the world.
AusPost wants inflation busting price rises, continuing its approach over recent years, during which letter volumes have plummeted. It wants to raise the price of an ordinary small letter by 13 per cent to $1.70, is also proposing to increase the prices of a range of its other reserved letter services, including the price of priority labels by 30 cents, from $0.70 to $1.00. Combined with the proposed regular stamp price increase, priority ordinary small letters are proposed to increase by 50 cents, from $2.20 to $2.70.
Kellie Northwood, CEO of VMA said, “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 by all means review our decision, however the industry cannot continue to submit documentation which therefore credits the process, when the process is flawed.
“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’. 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.”
In a letter to the ACCC Northwood said, “Historically, the VMA (and its predecessor organisations) has actively participated in the ACCC's annual consultation process for reviewing Australia Post’s “draft price notification”. Our contributions have included detailed and substantive submissions that articulate the effects of proposed stamp price increases on our members, their clients and consumers, as well as highlighting related concerns over claims made by Australia Post relating to cost recovery. Unfortunately, these efforts have been met with limited engagement and response from the ACCC, leaving us disappointed in the process's responsiveness and effectiveness.
“Further, we note the ACCC's current stakeholder survey is insufficient for gathering meaningful stakeholder insights on a matter of this significance. Additionally, 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. This timing undermines the ability of stakeholders to provide considered input and reflects a flawed approach to build genuine insights.”
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, it has built credible data and insights for relevant stakeholders in the industry. Promo, Charity Mail and UMS successes have been recognised. However it says that in light of its concerns, the VMA has decided not to participate in this year’s consultation process. It says, “This decision reflects our concerns about the limited scope and timing of the consultation, as well as the lack of meaningful engagement in past processes.”
The MIC says that should the ACCC wish to review its processes and or engage directly, it will provide further context.