Australia Post to franchise Post Shop outlets

So, the Government owned Australia Post is franchising it’s PostShop network. Is this a Government privatisation when you’re not having a privatisation?

The Government owned Australia Post retail network is being franchised, or at least parts of it, according to this announcement on their website. While I am sure the Government and Australia Post management will have reasons for franchising as opposed to selling – to maintain control over the brand, to ensure service obligations are met etc. – this move further demonstrates a lack of support for small business by the Government.

Australia Post has, over the last 10 years or so moved into areas well served by private enterprise, especially small business newsagents. They actively price compare and compete with newsagents in general stationery. They range compete in greeting cards and many other categories. It is bad policy that the Government competes with small business in this way and that they refuse to engage in dialogue on the matter.

In my own situation I have a government owned Post Office opposite my shop. Two thirds of their floor space is taken up with products which compete with my offerings. They get better rent, better opening hours and better concessions from the landlord because they are government owned. Good on them for achieving this. However, it provides them with an unfair advantage. Punters line up in their shop to buy stamps, because of their monopoly, and while in the line they are presented with products I carry. But since I don’t have stamps I don’t have guaranteed foot traffic. There is not a product in a newsagency which is exclusive. Australia Post has stamps and related product and they are leveraging this exclusive category to achieve consider other business. I’d do the same. However, if I were in Government I would have a small business policy which is real. I would ensure that my Government owned enterprises do not use their exclusivity to unfairly compete with private enterprise – especially at the small business end.

What Australia Post should have considered before this move into franchising is the offering of these businesses to nearby suitable small businesses – to help build back up the businesses hurt the most by Australia Post’s predatory practices. I am sure the business owners would pay a reasonable price. I would.

The Government ought to adopt a policy of withdrawing Australia Post government owned and controlled stores from all retail categories other than those they offer exclusively. Further, they ought to put the new franchising project on hold until they consider whether it reflects the small business friendly policies they claim to have.