Australia Posts monopoly strengthened

Australia Post’s Monopoly Strengthened?
October 13, 2001 — Aaron Patrick, Australian Financial Review: “The postal industry’s push for greater competition took a step backwards yesterday when the Labor Party, with only partial objection from the Coalition, promised to expand the governmental functions of Australia Post. The Opposition’s spokeswoman for regional services, Senator Sue Mackay, indicated the postal market would be unlikely to open up under a Labor Government, signing a pledge at a Hobart post office against any deregulation of Australia Post. ‘In fact, Australia Post will play a key and expanded role under a Beazley Labor Government as a platform for the delivery of services,’ she said. The government business enterprise last year generated a pre-tax profit of $391.9 million on a market share of close to 100 per cent. A 1998 report by Arthur Andersen predicted it could still generate a commercial rate of return which would be less than last year’s 14 per cent with the full deregulation of services, no price increases and no additional cost cuts. ‘It is happening more and more around the world and unless deregulation happens, Australia is not going to get the benefits of globalisation and technological advances,’ the Asian regional manager of Deutsche Post Global Mail, Mr Gordon Lang, said. However, it is unclear if the market would change under a Coalition Government. While the Liberal Party questioned the lack of costings and detail in the Labor Party’s proposal, its policy platform doesn’t advocate greater competition. The Communications Minister, Senator Richard Alston, yesterday declined to say if the Coalition planned to reintroduce deregulation legislation defeated in March. The Government had proposed to allow all carriers to handle letters and parcels of 50 grams or more, preserving Australia Post’s monopoly over standard letters, but failed to win Senate support.” Australian Financial Review, Aaron Patrick reporting)