The Australian Competition and Consumer Commission today released an issues paper seeking comment on Australia Post's proposal to increase prices across a number of its monopoly business mail letter services.
Australia Post does not propose any increases to the 60 cent basic postage rate or the price of other Ordinary letters.
Australia Post lodged a draft notification with the ACCC on 25 January 2011 that proposed increases in the price of small, medium and large PreSort letters, Clean mail and Reply Paid mail. Clean mail is a discount bulk mail service used by businesses for letters that are not pre-sorted or barcoded.
Some of the increases proposed by Australia Post include:
- small Clean Mail letter prices increase from 51 cents to 53.5 cents
- small (PreSort) Regular letter (delivered in the state of lodgement) prices increase from 42.7 cents to 45.7 cents
- small (PreSort) Off Peak letter (delivered in the state of lodgement) prices increase from 41.6 cents to 42.4 cents.
A full list of proposed prices is available in the issues paper.
Australia Post's PreSort services provide discounts to wholesale bulk mail customers that access its delivery network and who sort and barcode mail prior to lodgement. It includes Charity mail, which is a discount small PreSort letter service that can be used by registered charities in Australia. Australia Post also proposes product design changes to its Off Peak PreSort letter services.
Under the prices surveillance provisions of the Competition and Consumer Act 2010, the ACCC has a role in assessing proposed price increases for Australia Post's monopoly letter services.
In considering Australia Post's draft price notification, the ACCC would be assisted in receiving submissions from industry and consumer stakeholders on Australia Post's proposal.
In particular, the ACCC is seeking views on:
- the prices and product design changes being proposed by Australia Post
- the extent to which the proposal will enable the recovery of efficient costs by Australia Post.
Submissions should reach the ACCC by 16 March 2011. The draft notification, issues paper and submissions received will be available at: Business letter pricing 2011.