Govt backflip on postal deregulation

The federal government today ditched plans to open up more mail deliveries to private posties, after protests about the impact of the reforms in regional areas. The surprise move came after promises to ease the effects of
competition reform in the bush, and Labor said it was aimed at
heading off a voter backlash at the federal election. Communications
Minister Richard Alston said the government withdrew the bill because it did not want to waste time pursuing changes that were doomed in the Senate. But he said the government still supported the reforms and did not
rule out reintroducing them, or a modifying them, before the poll
later this year. “The election is not the basis on which you make
judgments,” he told reporters. “Quite clearly the Labor Party goes into feral overdrive in the lead-up to an election but we’re driven by changes which we think are in the best interests of consumers, not ones that are simply
going to win votes.” The bill was introduced to parliament nearly 12
months ago and would have allowed private posties to deliver letters above 50 grams, but kept Australia Post’s monopoly for standard letters. It would also have removed the monopoly on incoming overseas mail,
corporatised Australia Post and partially deregulated business mail.
Australian Democrats communications spokeswoman Vicki Bourne said
the changes would have been worse than the privatisation of Telstra. And
opposition communications spokesman Stephen Smith said it was a
case of another day, another backflip, although he warned the
government might still push the changes in through the back door. He said
the bill would have cost Australia Post $200 million and
possibly led to higher prices and reduced services in the bush,
which were subsidised by metropolitan services. “The only reason they have
done it is that the penny may well finally be dropping in rural and regional and remote Australia,” he said. In recent weeks political pressures have forced the government to change its policy on GST activity statements, petrol excise and its plan to tax family trusts in the same way as businesses. But Mr Smith said draft amendments to another bill would allow
private postal companies to register as document exchange providers
and go head to head with Australia Post on standard mail delivery. The
postal workers’ union said that would effectively deregulate the
$700 million business-to-business mail market and jeopardise basic
services, including unprofitable ones in rural areas. A spokesman for
Senator Alston said the government had no plans to
introduce the amendments, which had been circulated for industry
comment.
Copyright 2001 AAP Information Services Pty Ltd. Source : World
Reporter (Trademark)AAP NEWS, 29th March 2001