A leading mailing house has called for a federal investigation into what it alleges is anti-competitive conduct by Australia Post that is destroying jobs in the printing and mailing industries.
Ongoing price hikes for commercial mail as well as onerous payment conditions insisted on by the mail monopoly are damaging the underlying industry in a manner that seems to indicate a determination to do away with the current mailing system.
According to David Docherty, director D&D Mailing Services, in a letter to Mitch Fifield, Federal Minister for Communications, the anti-competitive behaviour of Australia Post warrants a full scale investigation. He accuses the Minister of not giving any consideration to an original complaint and with palming him off with 'a hastily put together political off handed response to clear your desk."
An irate Docherty takes the Minister, the Federal Government as well as Australia Post to task for inflicting 13 price rises over 12 years in some cases as high as 7%. Since 2012 the increase is in excess of 66%.
“I find it appalling that the Minister for Communications is willing to stand by along with the Government and allow a monopoly to conduct itself in an anti-competitive nature without any regard to the loss of business and ultimately jobs for thousands of Australians.
"The continuous increasing of pricing is doing nothing short of destroying the industry that has built its business on the medium of mail, and the publishers and suppliers to this industry have had no say or been given any consideration by Australia Post, who seem determined to do away with the mail system as we know it."
The price increases have put an inevitable strain on the sector's cash flow with mail customers demanding extended trading terms similar to other commercial activities. Requests for 60-90 days payment terms are not uncommon. However Australia Post, thanks to its monopoly position, demands the mailing sector stick rigidly to a 7-14 day trading term that is 'non-negotiable.'
This results in mailing houses who take on client postage in their own accounts virtually financing the customer on behalf of Australia Post. This comes under threat that if they don't pay Australia Post on time no mail will be collected, effectively putting the mailing house out of business.
Docherty told the Minister he is "not sure how long the industry can sustain the continuous onslaught from the monopoly money-hungry Australia Post. We believe that the continuous increasing of rates and the strict demands placed on customers by Australia Post is nothing short of engaging in anti-competitive conduct and requires immediate investigation.
“It has recently come to light that Australia Post has restated its financial position 49 times since 2014 in an effort to support the case for these extraordinary postage increases over the last decade.
In response, Fifield said: Australia Post regularly reviews the prices of business letters to ensure that the Corporation remains sustainable as letter volumes decline. Australia Post is reducing its operating costs, improving network efficiencies, and adjusting prices to partially recover costs of delivering its services. Australia Post still makes a loss on every letter it delivers.
Earlier this month, Rod Peirce, owner of Brisbane mailing house Smartcomm, said corporate regulator the ACCC should investigate Australia Post’s accounting practices. “There should be a formal independent inquiry and I’m surprised that the ACCC or the Federal Minister hasn’t already picked up on it. They’ve been trying to push people out of letters.”
The latest row comes as Printing Industries hosts a national tour, 'Australia Post Up Close' to allow printers and mailing houses to engage with the monopoly.