ACCC issues third Australia Post cross-subsidy report
The Australian Competition and Consumer Commission today issued its third report assessing cross-subsidy between the services provided by Australia Post.
The report analyses the 2006-07 regulatory accounts of Australia Post to establish whether their competitive activities (non-reserved services) are being cross-subsidised with revenue from their monopoly activities (reserved services).
"The regulatory accounts do not provide evidence that Australia Post is subsidising its non-reserved services from its reserved services," ACCC Chairman, Mr Graeme Samuel, said.
"Logistics, which is one of the non-reserved services, once again received a subsidy in 2006-07. However, the source of the subsidy to logistics is the other non-reserved services."
The 2006–07 cross subsidy monitoring report will be available on the ACCC's website.
Media inquiries
Mr Graeme Samuel, Chairman, 0408 335 555
Ms Lin Enright, Director, Media Unit, (02) 6243 1108or 0414 613 520
In addition to its general responsibilities in enforcing the Trade Practices Act 1974, the ACCC has three specific responsibilities in the regulation of postal services:
monitoring for the presence of cross-subsidies between Australia Post's reserved and non-reserved services
assessing proposed price increases of Australia Post's reserved services
inquiring into certain disputes regarding the terms and conditions on which Australia Post supplies its bulk mail services.
To assist it in undertaking these roles, the ACCC can issue 'record keeping rules' to Australia Post, thereby requiring Australia Post to keep the records specified and provide them to the ACCC.
Subsection 50H(2) of the Australian Postal Corporation Act 1989 provides that the ACCC must require Australia Post to keep records about its reserved services. The purpose of this requirement is to enable the ACCC to scrutinise whether or not Australia Post is cross-subsidising from its reserved services to its non-reserved services. However, the ACCC may require Australia Post to keep records that relate to any of its regulatory roles.
The ACCC may prepare and publish reports analysing the information provided to it under the record keeping rules and the Minister may direct the ACCC to prepare and publish reports analysing the information provided to it under the record keeping rules.
