ࡱ> /1. bjbjyy * (((( 4(PPPPP+++qssssss$F^+++++PP+ PPQ +qP>r-5=0 +++++++++++++++++++ : ԭ Postal Review Service. I would like to make a submission opposing Australia Post proposed increase in stamp rates in 2015 from 70 cents to $1. I have recently studied the 2014 Australia Post Financial report and believe that the price increase applied for is excessive and in today's difficult financial position will be an unjust impost on all Australians. From the 2014 report copied below the total volume of letters was 3,173.5 Million for 2014. Five-year trends 2010 2011 2012 2013 2014 Revenue ($m) 4,856.2 4,986.5 5,126.2 5,893.2 6,383.3 Profit before tax ($m)(3) 103.0 332.3 366.7 210.7 103.0 Profit after tax ($m)(3) 89.5 241.2 281.2 177.4 116.2 Profit/(loss) from reserved services ($m)(1)(3) 2010 2011 2012 2013 2014 (250.1) (66.5) (114.4) (198.0) (242.6) Return on equity (%)(2)(3) 6.2 15.0 16.8 10.5 6.7 Return on average operating assets (%)(3) 3.8 10.9 11.5 6.2 3.4 Debt to debt plus equity 26.4 23.6 29.1 27.3 28.8 Dividends declared ($m) 79.1 173.2 213.7 192.7 78.8 Interest cover (times)(3) 4.6 10.9 10.8 7.7 3.6 Reserved services letter volumes (m) 3,876.6 3,738.8 3,545.3 3,305.7 3,173.5 In addition copied from the Postal section the following table, showing an accumulated loss over 5 years of $871.6 million and 2014 loss of $242.6 Million: Year CSO cost ($ million) EBIT ($ million) Volume change Annual Cumulative (million) (%) 2010 $147.7 -$250.1 -$250.1 3.9 -5.3% 2011 $144.7 -$66.5 -$316.6 3.7 -3.6% 2012 $165.9 -$114.4 -$431.0 3.5 -5.2% 2013 $173.9 -$198.0 -$629.0 3.3 -6.8% 2014 $203.5 -$242.6 -$871.6 3.2 -4.0%1 Given a proposed price hike of $0.30 per stamp and assuming an annual worst case scenario of 3 Billion postal items, the increased revenue would be an extra $900 Million, which would effectively wipe out the 5 year cumulative debt in just one year. The following years would provide a massive windfall profit to Australia Post at the expense of ordinary Australians. Given Australia Post is making greatly increased profits from parcels (caused by the Internet which is also responsible for reduced letters), the ACC should take this into account and make Australia Post use these profits to cross subsidise the letter division before massive increases in stamps are allowed, as it is simply a shift in the method of earnings within the organisation. Also the parcel division has a huge benefit derived by the requirement for Australia Post to have a physical presence in nearly every town in Australia for its letters business. The bricks and mortar, staff and vehicles all paid for by taxpayers and previous letter and parcels make any competition in smaller towns and rural areas almost impossible for competitors in parcel delivery to match. I urge you all to disallow this excessive postal tax increase and keep faith with the Australian people by only allowing a modest price increase to mail costs. Regards, Keith O'Brian.   5 = x ~  = E |   ? D y } r RdhztCJOJPJQJ^JaJhztCJOJPJQJ^JaJhzt5OJPJQJ\^JhztOJPJQJ^Jhzt5OJPJQJ\^J%a n o  = ~  E  D } 7$ 6 o r 1^r,-Yw97$9:7$(. A!n"n#n$n% ^ 666666666vvvvvvvvv66666686666666666666666666666666666666666666666666666666hH6666666666666666666666666666666666666666666666666666666666666666662 0@P`p2( 0@P`p 0@P`p 0@P`p 0@P`p 0@P`p 0@P`p8XV~_HmH nH sH tH N`N Normal*$1$ CJKHPJ_HaJmH sH tHDA D Default Paragraph FontVi@V 0 Table Normal :V 44 la (k ( 0No List NON Heading x$OJQJCJPJ^JaJ6B@6 Body Text x(/@( List^JH"@"H Caption xx $CJ6^JaJ].O2. Index $^JPK![Content_Types].xmlN0EH-J@%ǎǢ|ș$زULTB l,3;rØJB+$G]7O٭V$ !)O^rC$y@/yH*񄴽)޵߻UDb`}"qۋJחX^)I`nEp)liV[]1M<OP6r=zgbIguSebORD۫qu gZo~ٺlAplxpT0+[}`jzAV2Fi@qv֬5\|ʜ̭NleXdsjcs7f W+Ն7`g ȘJj|h(KD- dXiJ؇(x$( :;˹! 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