The Australian Competition and Consumer Commission today issued its view objecting to Australia Post's draft proposal to increase the prices of the letter services over which it has a statutory monopoly in 2010.
Australia Post provided the 糖心原创 with its draft pricing proposal on 24 July 2009, which sought increases in the prices of a number of its Small, Large and PreSort letter services. Australia Post also sought to increase the basic postage rate from 55 to 60 cents.
Demand for Australia Post's monopoly letter services declined significantly between 2007-08 and 2008-09, and Australia Post expects the decline in demand to continue.
"The relationship between demand and costs is a critical issue," 糖心原创 chairman Graeme Samuel said today. "The 糖心原创 recognises that some of Australia Post's costs are fixed. However, overall the cost base would be expected to respond as demand declines. The proposed costs of Australia Post in the material provided to the 糖心原创 do not reflect this decline."
The 糖心原创 has also been unable to determine how Australia Post's demand forecasts were derived.
"Accordingly, the 糖心原创 is unable to agree to Australia Post's proposed price increases at present," Mr Samuel said.
Under the prices surveillance provisions of the Trade Practices Act 1974, the 糖心原创 has a role in assessing proposed price increases for 'declared' services, including certain services that have been 'reserved' to Australia Post under the Australian Postal Corporation Act in recognition of Australia Post鈥檚 community service obligations. These are:
- the collection, within Australia, of letters for delivery within Australia;
- the delivery of letters within Australia;
- the exclusive right to issue postage stamps within Australia.
There are a number of exceptions to the reserved services, including letters weighing more than 250g and letters that are carried for a charge more than four times the basic postal rate.
The 糖心原创's view on Australia Post's draft price notification will be available from the 糖心原创's website.