Australia Post has submitted a formal proposal to the Australian Competition and ConsumerCommission (ACCC) to increase its basic postage by five cents with effect from 28 June 2010 onwards
to cover rising costs.The proposed increase in Australia’s basic postage rate would only be the third in 18 years, thecountry’s postal operator stressed.
Jim Marshall, General Manager Mail & Networks, said: “While no-one likes a price rise, weare only seeking an increase in order to cover the cost of providing access to letter services forall Australians – no matter where they live.”
“Rapid growth in areas such as western Sydney, south-east Melbourne, south-east Queensland andparts of Western Australia will add 2.5 million new addresses to Australia Post’s delivery networkover the next decade,” Marshall added.
With revenues from the proposed increase, Australia Post expects to cover the escalating costsassociated with servicing this ever-expanding delivery network.
“Maintaining our delivery and retail networks is important for all Australians. We have thenation’s largest physical retail network with 4,453 outlets across Australia. We’re proud that over2,500 of these outlets are located in rural and remote areas, where they provide vital services forlocal communities,” Marshall explained.
Despite the proposed increase, Australia’s basic postage rate would still be the third lowest inthe OECD. In the UK and many European countries, it costs the equivalent of more than AUS$1 for asimilar service, Australia Post added.
