VMA SAYS AUSPOST SHOULD STICK TO SCRIPT

The Visual Media Association says the AusPost approach of straying from its volume and costs forecasts, and consequently foisting price rises onto the print and mail industry, ‘defies commercial practice’.

VMA has called the Mail Industry Coalition together for a meeting next Monday to discuss the approach to the mail monopoly’s latest price rise request, currently before the ACCC. AusPost wants inflation busting price rises, continuing its approach over recent years, during which letter volumes have plummeted.

Kellie Northwood, CEO of VMA said, “The ongoing concern across Australia Post’s request of price increases to the Basic Postal Rate, which impacts Business Mail, is the inconsistency to the support to reviewed processes and how they are being held to account. Essentially, industry has supported alternate days, reduced service levels, product discontinuation and revisions and more, however year on year the Business Mail forecasts issued by Australia Post appear to stray from volume and costs which then sees their only option is to increase pricing. It defies commercial practice.

“If Australia Post makes commitments to pricing based on their operational cost improvement initiatives they should be held to account for it, rather than industry being hit hardest with annual price increases.”

AusPost 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.

Consultation on the proposed rises is open until 22 December. Following the consultation process, the ACCC will release a preliminary view on the draft price notification early next year. Australia Post may then lodge a formal notification of a price rise with the ACCC.

“Whilst VMA have held greater focus on Promo and Charity Mail products due to our member breakdown, there is concern that the highest price increases proposed to Presort will lead to volume decreases across the largest letters volume sector. We will be seeking insight into the volume modelling in this regard to understand how this will impact other product pricing in the forecast – this will include contingency forecasts,” said Northwood.

 “Finally, Government cannot stand idle on these matters either, on both sides of politics. The postal service is a fundamental societal service across Australia. From Post Offices to regional letterbox delivery, equal access to communications and correspondence for all citizens and more.

“Further to any profitability from Australia Post, the broader industry employs some 230,000 Australians contributing to the economy via employment, income taxes, GST and more. All correspondence regarding this matter will shared with the minister and shadow minister’s office to ensure there is a deep understanding of all matters at hand as we approach an important election year in 2025.”