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2015-01-29

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Not everybody buys claim for Post deregulation

The federal government is expected to make more noise on the issue of Post deregulation soon.

Communications Minister Malcolm Turnbull reportedly wants to fast forward his e-government initiatives to make all government services available digitally by 2017.

Post boss Ahmed Fahour has been busy making the case to end the legislated next day delivery by talking up the losses from the traditional mail businesses.

But not everyone is convinced. A decline of 5% in letters is not the crisis that Mr Fahour and the government would like the community to believe.

The CWU for one is not convinced Post has done all it can to promote its business to manage the downturn. The union says that despite all the problems with the traditional mail service, it is still a very effective marketing medium — as is clear to anyone who has been subjected to the huge direct advertising during election campaigns.

The CWU National Office has formed an alliance with other unions, printers, the printing industries association, the licensed post offices group and community groups. We are pushing for Post to sit down and work through ideas about how to promote the service and manage the downturn better.

Our campaign has and will continue to attract community support. No doubt Mr. Fahour will use his half year profits release next month to again talk down the mail businesses. But people will not be easily duped.

Post has spent $2bn boosting the booming parcels business. It has bought out Qantas from the Star Track Express joint venture. It has upgraded the Sydney and Melbourne centres. This is not a business going broke any time soon.

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