ACCC seeks comment on proposed increases in postage prices
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 mail services.
Australia Post lodged a draft notification with the ACCC on 5 February 2008 which proposes an increase in the basic postage rate from 50 to 55 cents as well as increases in the price of other mail services including large and small ordinary letters, large and small pre-sort ordinary letters, clean mail, reply paid mail, impact mail and local delivery mail.
"The ACCC has received a detailed submission from Australia Post in support of the proposed price increases," ACCC Chairman, Mr Graeme Samuel, said.
"This submission includes modelling of Australia Post's past and future productivity, mail volumes, and costs.
"The issues paper released by the ACCC today seeks comment from interested parties on Australia Post's proposal."
To assist the ACCC's consideration of the draft notification, submissions are being sought from interested parties on key issues. These submissions should reach the ACCC by 4 April 2008.
The draft notification, issues paper and submissions received will be available on the ACCC's website.
Under the Prices Surveillance provisions of the Trade Practices Act 1974 (TPA), the ACCC has a role in assessing proposed price increases for declared services.
Certain services 'reserved' to Australia Post under the Australian Postal Corporation Act 1989 are declared for the purposes of the Prices Surveillance provisions of the TPA.
In recognition of Australia Post's community service obligations (which oblige Australia Post to carry and deliver standard letters at a universal rate to anywhere in Australia), it has been granted a general monopoly over reserved services.
The reserved services extend to:
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.
