Australia Post has been asked to delay price increases for its Ad Post services until October 2000.
The request follows Australian Competition and Consumer Commission consideration of an Australia Post notification of price increases for letter items within 'reserved services'.
Australia Post notified the ACCC of a number of changes it wished to make to its new price structures being introduced in October 1999. The new structures, for barcoding in particular, were first notified to the ACCC in 1997, to come into effect in October this year.
"Most of the changes will favour users," ACCC Chairman, Professor Allan Fels, said today. "The existing Bulk PreSort arrangements will remain in place for an additional two years, the discount for metering is to be increased and the threshold number for eligibility for a bulk discount is to be lowered from 2,500 to 300 letters.
"The proposed adjustment in prices will result in an overall reduction of bulk letter prices of 9 per cent from current prices and 1.1 per cent from those previously notified to the ACCC.
"But some price increases are proposed for some Ad Post services. Although the price changes are relatively small, for some companies that use Ad Post in direct marketing there will be a considerable increase in their postage.
"Australia Post argued that customers were offered the option of avoiding the price increases though the use of the newly introduced discount structure offered when meters and/or barcoding are used.
"The ACCC considered that these would be more realistic options to users if the price increase for Ad Post services were delayed until October 2000. Business should then be more able to make informed decisions about whether to a move to barcoding or metering would mitigate the effect of the price increases. Currently, there is considerable user concern about the costs involved to users for both these new technologies. The basic 45c postal rate is unaffected by these changes."