Australia Post begins price rise process
Australia Post has lodged a formal submission with the Australian Competition and Consumer Commission to increase the basic postage rate by five cents from 28 June, reports PS News. The article continues:
General manager of mail and networks at Australia Post, Jim Marshall, said the submission addressed issues raised by the ACCC in its December 2009 View, which had been in response to Australia Post’s notification in July that year.
“While no-one likes a price rise, we are only seeking an increase in order to cover the cost of providing access to letter services for all Australians – no matter where they live,” Marshall said.
“Rapid growth in areas such as western Sydney, south-east Melbourne, south-east Queensland and parts of Western Australia will add 2.5m new addresses to Australia Post’s delivery network over the next decade.
“The projected growth in homes and business addresses over the coming decade will be equivalent to adding another Queensland or nearly four Adelaides to our network.”
Marshall said revenue from the proposed increase – the third in 18 years – would help Australia Post cover the cost of the expanding delivery network. He said Australia Post had 4,453 retail outlets across the country, with over 2,500 of these located in rural and remote areas.
Marshall said even with the proposed increase, Australia’s basic postage rate would still be the third lowest in the OECD, with people in the UK and many European countries paying the equivalent of more than $1 for a similar service.
