The Australian Direct Marketing Association supports yesterday’s decision by the Australian Consumer and Competition Commission (ACCC) to object to an increase in Australia Post prices which, if accepted, would have taken effect on 1 January 2010.

ADMA Chief Executive Officer, Rob Edwards said, “an increase to Australia Post’s prices, following so closely on the heels of one this time last year, would have been inappropriate. During this time of fledgling economic recovery such an increase would hardly assist industry.”

Rob Edwards was keen to stress that Australia is blessed with one of the most efficient and effective mail services in the world which had been integral to the success of commerce here. But, as a monopoly, Australia Post policies should be subject to review.

“The most substantial risk posed by a price increase was the possibility of it hastening substitution of letter services leading to a further decline in demand for Australia Post services. It’s an action which could create a cycle in which prices are increased again to offset falling revenues,” Rob Edwards said.

Australia Post may reapply for an increase in prices in the future, at a time yet to be determined by the ACCC, but will be required to provide additional information on its demand and cost forecasts.

Source: http://www.adma.com.au/data/portal/00000947/content/27662001260509525952.pdf

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