CEPU Submission - Enterprising Australia
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LEGISLATIVE REVIEW OF THE THE POSTAL SERVICES LEGISLATION AMENDMENT BILL 2000
CEPU (COMMUNICATIONS DIVISION) SUBMISSION
TO
THE SENATE ENVIRONMENT, RECREATION, COMMUNICATIONS AND THE ARTS LEGISLATION COMMITTEE
May 2000
This Submission has been prepared by:
Jim Claven
National Industrial Research Officer
CEPU Divisional Office
EXECUTIVE SUMMARY
The CEPU urges the Senate Committee to reject the proposed Postal Services Legislation Amendment Bill 2000. We do so because the Bill will:
will have overwhelmingly negative impacts on Australia's postal service,
ignores the real nature of the industry to Australia Post's peril; and,
ignores the fact that the existing postal regulatory regime is sufficient to provide appropriate levels of competition, secure existing services and to provide the platform for the delivery of improved services in the future.
THE OVERWHELMING NEGATIVE IMPACTS OF THE PROPOSED BILL
The CEPU argue that the Bill will adversely impact on Australia Post's operations such that it will be unable to maintain current service levels and service spread, thereby undermining the affordability and accessibility of ordinary Australians to postal services. Some of these impacts will:
Financially undermine Australia Post. This will occur through the loss of market share due to the reduction in the reserved service and the full deregulation of international mail, as well as undermining the remaining reserved services through a proposed access regime which will give preferential treatment to Australia post competitors and a regime which will encourage re-mail of domestic mail through overseas operators;
Reduced Services and Increased Charges. A whole range of services (including parcels, financial and bill paying services) will be threatened as a consequence of Australia Post's reduced financial situation. Not covered by Australia Post's community service obligations, Australia Post will be in a position to discontinue these services for "commercial reasons" as its new Services Charter provides or to seek compensating price rises. Existing vulnerability's are that 400 post offices are currently in excess of the Australia Post's Service Charter (with nearly 700 Licensed Post Offices currently subsidized by Australia Post to keep them open) and a whole range of other non-standard letter services will also be exposed by the Bill to a massive cost saving exercise by Australia Post. These include letters above 50gms, parcels and financial services. These are particularly important for rural and regional areas, where Australia Post is generally the only provider. These services are excluded from the government's much vaunted "service guarantee". Irrespective of Government guarantees, differential pricing could be introduced for a range of postal charges as Australia Post is forced to recover its costs, putting postal services to the bush beyond the reach of millions of Australians.
Employment Losses. The CEPU estimate that up to 17,000 Australia Post jobs will be put at risk by this Bill, depending on the extent of market share lost by Australia Post. Any increase in employment in the private sector will not be comparable in terms of employment, with these positions expected to be casual, part-time and with limited opportunities for skill development. in addition, as a result of the deregulation of international mail the occurrence of "re-mail" will further jeopardize employment in Australia Post (by exposing the remaining reserved service to "illegal" competition) as well as employment in the private sector mail management and production industries;
Ordinary Australians will not Benefit. It is clear from our reading of the Bill that it has been prepared to satisfy the financial interests of a distinct aspect of Australia's postal market, specifically Australia Post's competitors and its major mail user customers. Ordinary customers will not benefit from this Bill.
Download Research Paper
as a Word Document (245kb)
LEGISLATIVE REVIEW OF THE THE POSTAL SERVICES LEGISLATION AMENDMENT BILL 2000
CEPU (COMMUNICATIONS DIVISION) SUBMISSION
TO
THE SENATE ENVIRONMENT, RECREATION, COMMUNICATIONS AND THE ARTS LEGISLATION COMMITTEE
CONTENTS
EXECUTIVE SUMMARY
1. THE POSTAL SERVICES LEGISLATION AMENDMENT BILL 2000
1.1 BACKGROUND TO THE BILL
1.2 KEY PROVISIONS OF THE BILL
2. THE IMPACT OF THE BILL
2.1 OVERALL COMMENTS
2.2 FINANCIAL IMPACTS
2.3 CREAM-SKIMMING EFFECTS
2.4 SERVICE IMPACTS
2.5 RURAL AND REGIONAL IMPACTS
2.6 THE ACCESS REGIME IMPACTS
2.7 INTERNATIONAL MAIL DEREGULATION IMPACTS
2.8 BENEFICIARIES
2.9 TRADE IMPACTS
2.10 IMPROVED SERVICES THREATENED
2.11 OTHER COMMENTS
3. OTHER RELEVANT CHALLENGES FACING AUSTRALIA POST
3.1 THE GOODS AND SERVICES TAX
3.2 THE RURAL TRANSACTION CENTRE PROGRAM
3.3 COMMERCIAL PRESSURES
4. THE UNNECESSARY NATURE OF THE BILL
4.1 THE AUSTRALIAN POSTAL SERVICES MARKET
4.2 AUSTRALIA POST - A PROVEN AND WORLD CLASS PERFORMER
4.3 THE REAL NEW SERVICES AGENDA
5. RECOMMENDATION
5.1 THE OVERWHLEMING NEGATIVE IMPACTS OF THE PROPOSED BILL
5.2 BILL IGNORES THE REAL NATURE OF THE INDUSTRY
5.3 EXISTING POSTAL REGULATORY REGIME APPROPRIATE
5.4 CONCLUSION
ATTACHMENTS
1. The Cost of Postal Deregulation
2. GST Financial Impacts on Australia Post
3. Media Reports 1:
Hounsfield, C., (ed.), "Emerging mergers", Postal Technology International, 2000
TNT, "TPG, British Post Office and Singapore Post in ground breaking Business Mail Joint Venture", Press Release, 9 March 2000
4. Summary of the Universal and Community Service Obligations of Australia Post
5. Media Reports 2:
Connors, E., "Rain, sleet or cyberspace, Australia Post will deliver", The Australian Financial Review, 5 October 1999
6. Media Reports 3:
Canada Post, "Canada Postal Corporation and Cebra Inc. form strategic alliance with SAP to deliver Electronic Post Office to
mySAP.com community", News Release, 14 September 1999
Ameresekere, P., "Thirty eight new post offices with E-mail facilities", Daily News (Sri Lanka), 5 October 1999
TABLES
1. Australia Post Outlet Changes, 1989-1999
2. Impact of Coalition Government Policy on Postal Outlets, 1997-1999
3. International Taxation Comparisons
4. Consolidated Financial Returns
5. Mail Items and On-Time Delivery
6. Domestic and International Mail Business Statistics
7. Australia Post's Delivery Timetable
8. Estimated Results of Product Dissection between Reserved and Non-Reserved
Services, 1999
9. Competition to Australia Post Product/Services
10. Messaging Market Share By Volume (Excludes EFT)
11. Occupations of Full Time Staff (Excluding Casuals) (As at 30 June 1999)
12. Total People Engaged By Australia Post to Provide Postal Services
30 June 1999
13. Comparison of Australia Post's giroPost outlets with Major Retail
Bank Branches 30 June 1999
14. Bush Banking (As at 30 June 1998)
15. Basic Postage Rate (BPR)* and the Consumer Price Index (CPI)
16. Percentage Change in Australia Post's Business and Private Monitors
17. Corporatisation and Job Losses
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