ACCC to consult Australian public about postage stamp price rise

The Australian Competition and Consumer Commission will hold a series of public forums across Australia this month to discuss a proposal by Australia Post to increase the cost of various postal services, including the price of the basic postage stamp.

Australia Post informed the ACCC in April of its intention to increase the price of the basic postage stamp from 45 cents to 50c from January 2003. It also proposes to increase the price of sending greeting cards, large letters and pre-sorted mail.

The ACCC is required to assess the proposed price increases as they are declared services under the Prices Surveillance Act 1983.

"It is important that the Australian public be given every opportunity to express its views on this proposal", ACCC Acting Chairman, Mr Sitesh Bhojani, said today. "The ACCC strives to be fully accountable in its decision-making and these forums will enable it to consult as many consumers as possible".

The ACCC has been seeking written comments on an Issues Paper from interested parties for the last three weeks. The Issues Paper is available on the ACCC's website and the public can still provide comments until June 10. The comments will be taken into account when assessing the notification. The forums offer consumers a further opportunity to discuss the issues arising from Australia Post's proposal.

Forums will be held in most state capitals, as well as a number of regional centres, between June 17 and 28.

Background

Under the Australian Postal Corporation Act, certain postal services are "reserved" to Australia Post. This means that Australia Post has the exclusive right to provide these services. In particular, Australia Post has an exclusive right to deliver letters within Australia and an exclusive right to issue postage stamps.

There are a number of exceptions to the reserved services. Most notably, letters weighing more than 250g are not reserved, nor are letters that are carried for a charge more than four times the basic postage rate. Since the current postage rate is 45c, this means that letters carried for a fee of over $1.80 are not reserved.

Australia Post also has a universal service obligation. This means that it must carry and deliver standard letters at a uniform postage rate - currently 45c - to anywhere in Australia.