The Australian Competition and Consumer Commission has not objected to changes in Australia Post's discount rates for the Ad Post service.
In November 2001, Australia Post notified* the ACCC of a number of changes it intended to make to the pricing of its Ad Post service. Ad Post provides direct mail businesses with discounted postal rates for bulk advertising mail.
The proposed changes would phase out the Ad Post discount for all customers except charities. The phase out is proposed in two stages – an initial price increase in Ad Post prices from 1 July 2002, with the discontinuation of the Ad Post service from 1 January 2003.
This is a revised form of an earlier draft notification lodged with the ACCC in June 2001. The original notification proposed initially increasing Ad Post prices on 1 November 2001, with the Ad Post service to be discontinued on 1 November 2002.
"The ACCC originally had concerns with the lack of adequate consultation prior to Australia Post informing users of the proposed price increases and the insufficient lead time for the introduction of the proposed prices increases", ACCC Chairman, Professor Allan Fels, said today.
"However, Australia Post engaged in further consultation with bulk mail users and has delayed implementing the initial reduction of the discount by eight months".
In reaching its decision, the ACCC also noted Australia Post's claim that the Ad Post service has been making losses over a number of years.
* Under the Prices Surveillance Act 1983, Australia Post is required to notify the ACCC of any price increases for its reserved services. The reserved services are those for which Australia Post has a legislated monopoly.