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  • Writer's pictureThe Beagle

Australia Post foreshadows closures

Government News reports that Post office operators are calling on all levels of government to come to the rescue of the network after Australia Post profits plunged 70 per cent, raising the prospect of closures

In their report Post offices put out SOS to governments Judy Skatssoon writes: Australia Post’s CEO and Managing director Christine Holgate warned the losses were likely to continue, resulting in the closure of post offices unless there was an increase in stamp prices.

She said if the postal service becomes  loss-making it will no longer meet its Postal Corporation Act obligations, and the government would have to act to ensure it returned to viability.

“Without an increase to the Basic Postage Rate, Australia Post will no longer be able to afford to fully subsidise the losses from the important post business, which would risk the closure of community post offices and a reduction in services,” she said.

“Australia Post is absolutely committed to honouring our community obligations and appreciates the essential role we play in communities, but urgent help is required.”

The company has lodged a notification with the ACCC seeking an increase in the basic postage rate which would increase the cost of a postage stamp from $1 to $1.10 next year.

Requiring posties to carry more parcels, automating work processes and implementing job cuts are other possible options on the table for Australia Post. You can read the full article, first published by Government News HERE


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