Australia Post is finding that the old model has died. The number of letters has dwindled while parcel deliveries are booming. Rather than use the old monopoly action of subsidizing one sector to support another, Australia Post wants more profit than ever. It is talking about charging for letter deliveries.
In the past, urban areas paid for the cost of deliveries to the thinly populated bush. Companies today are greedy, going for profit in all sectors. Talk about privatizing the postal service is not changing this attitude - it is enforcing it.
Free deliveries for only three days a week is on offer. with a significant weekly charge for full service. As critics have pointed out money will be needed to store all the letters on hold and sorting will become an almighty mess. Another thing for Australia Post to remember is that people who post letters already pay for delivery. The ACCC and the High Court should stop the national postal service charging twice.
The federal government could bring in new laws but there will definitely be a High Court challenge. The High Court has been a tough hurdle to jump over in the past.
Economics Ty Buchanan