Australia Post to seek five cent increase to basic postage rate in 2010
Thursday, 08 April 2010
Australia Post has lodged a formal notification with the Australian Competition and Consumer Commission (ACCC) proposing a five-cent increase in the basic postage rate, effective from 28 June 2010.
The submission follows discussions with the ACCC over concerns raised in their December 2009 View in response to Australia Post's July 2009 notification. Australia Post believes it has now addressed the issues that were previously raised by the ACCC.
The proposed increase in Australia's basic postage rate would only be the third in 18 years.
General Manager Mail & Networks Jim Marshall, said the decision had not been taken lightly. "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."
"Rapid growth in areas such as western Sydney, south-east Melbourne, south-east Queensland and parts of Western Australia will add 2.5 million 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."
Revenue from the proposed increase will help Australia Post cover the escalating costs associated with servicing this ever-expanding delivery network.
"Maintaining our delivery and retail networks is important for all Australians. We have the nation's largest physical retail network with 4,453 outlets across Australia. We're proud that over 2,500 of these outlets are located in rural and remote areas, where they provide vital services for local communities," said Mr Marshall.
Australians have access to one of the most affordable and reliable letter services in the world. Even with the proposed increase, Australia's basic postage rate would still be the third lowest in the OECD. In the UK and many European countries it costs the equivalent of more than $1 for a similar service.