On September 26 I wrote to, among others, Federal Minister for Small Business, Fran Bailey about Australia Post and the unfair advantage their Government-owned Australia Post stores had and how they were specifically targeting small businesses, specifically newsagencies. In my letter I said, in part:
When farmers talk of the impact of droughts the government steps in with assistance. When auto makers talk of the impact of cheap imports the government steps in and helps. When newsagents talk of the impact of Australia Post the government ignores us.
Australia Post is our drought. For many years now it has been draining newsagencies of revenue.
Yesterday, I received this reply from the Minister. While I appreciate the response, it is meaningless. The letter says, in part:
The Australian Government recognises the importance of newsagencies in our communities and is committed to creating a fair trading environment for all small businesses.
It also makes the claim that Australia Post is permitted to:
…carry on any business or activity that is incidental or relates to the supply of postal services.
This morning I have responded with this letter to the Minister. How can the Government consider Music CDs, Chess sets, Radios, Puzzles and Cookbooks to meet the criteria under the Act? Why will the Government not take steps to have the Australia Post breach of its obligations under the Act investigated?
The Government is conflicted beyond its ownership and regulation of Australia Post. As my letter to the Minister today says:
For decades, newsagents were profitable while they had a monopoly on the distribution of newspapers and magazines. In 1999 the Government facilitated the deregulation of the distribution of newspapers and magazines. As we have lost the benefits of exclusive traffic as a result of this deregulation, Australia Post has increased its range of newsagent type lines and thereby very successfully leveraged its continued exclusivity to more effectively compete with us.
I am not calling for a wind-back of newspaper and magazine deregulation. Rather, I am calling for the Government to get out of the business of competing with independent small business.
I was in a Government owned Post Office yesterday and was confronted with a big display of plush product – soft toys. Where in the Act are provisions permitting Australia Post to enter the soft toy space? Their entry into this category this Christmas season will affect sales in my newsagency.
I am disappointed that the Government will not even for a moment contemplate that they are wrong on this and that the actions of their Corporation are harming a small business channel which is vital to the community.
Yes, Sir Humphrey Appleby is alive and well and writing letters for the Government.
Mark
Thanks for sharing; it is obvious that the government owned P.O’s are driven by $$$$$ at the expense of small business owners. Its monopoly should be challenged as it is denying an equal playing field. Tell us what we can do together to help. ACCC? Email petition??, Group petition?
You may laugh, although I dont have a time I can guarantee the government owned P.O’s will all be privatised one day and may I remind you there will never ever be a GST.
Australia Post shops open on Saturdays, but if you give them an urgent piece of mail, they put it in a bin ’til Monday. So the only thing they don’t do over the weekend is send mail
REgards
Russ Hermann
As well as using the shops to sell this stuff, they also use the Postmen who deliver the mail to deliver fliers direct to homes advertising it. We had a glossy leaflet this week with our mail advertising all the Christmas books, etc, we could buy from any Australia Post shop.
There is an office within the Productivity Commission which investigates whether Australia Post unfairly leverages its government ownership for competitive advantage. They (AGCNCO) say they do not. I am not so sure. The brand itself generates a ton of traffic and it is a brand the government created and supports through a monopoly arrangement.
Derek – in response to your comment. The best course of action is to write to Senator Coonan (Minister responsible), Senator Bailey (Minister for Small Business)and your local member. This is a poliocy issue which the Government needs to correct in the Act – the Act is the source of the problem.
Mark