Through more than 850 Federal Government owned and operated retail Post Offices the government’s commitment to a sustainable small business economy is mocked. Successive Federal Governments have sat on their hands and allowed the bosses at Australia Post stray further beyond offering the services permitted under the Act. Indeed, they had the Act drafted in such a way as to make it hard to prosecute a case against Australia Post for selling books, CDs, DVDs, general stationery, ink, cameras, BBQ sets – all manner of items already available from thousands of stores across Australia.
The Australia Post Christmas catalogue is a perfect example of how Government ownership is being abused.
Australia Post, thanks to its monopoly protection around postal services, lands people in its shops for a fraction of what a newsagent costs. A look inside the door of a Government owned outlet shows this stamp and service business looking more and more like a newsagency and other retail outlets. I took the photo of the entrance to the Government owned outlet at Forest Hill (VIC) earlier this week.
I don’t blame Australia Post. They have successfully manipulated the process to get politicians and policy on their side.
The politicians have been convinced into thinking that Australia Post needed these other products to make their retail network viable. This is what the former Minister responsible, Senator Helen Coonan, told me when I met to discuss this issue (without success).
If the current Federal Government is serious about small business it will research how the retail Post network operates overseas and research the impact of Australia Post’s retail expansion has hurt businesses like newsagencies over the last ten years. Overseas they will see that best practice is considered to be retail outlets that focus on postal services. Back home they will find that small business retailers like newsagents have lost, I’d estimate, more than $100 million to the Government retail network.
The Howard Government failed to engage on this issue for its entire tenure. This is an opportunity for the Rudd Government to show if they are serious about small business.