82% of printers fear productivity loss with postage rises

The association recently conducted the online survey as part of its opposition to Australia Post’s proposal to lift the basic postage rate from 55c to 60c.

Australia Post is also proposing to increase the prices of large ordinary, small ordinary, small PreSort and large PreSort letters. The new pricing would take effect on 28 June.

The results of the survey show that 77% of respondents believe the proposed price increases will drive their clients to alternative marketing channels.

Meanwhile, 27.3% said their business viability would be put at risk if the increases were pushed through, while a massive 93% said Australia Post has not fully exhausted its cost-based responses to declining letter volumes.

Printing Industries is lobbying the ACCC to block the proposed price increases, saying that the increases are “premature” and “fail to compensate mail house operators for their costs incurred in helping Australia Post to improve its efficiency”.

Hagop Tchamkertenian, Printing Industries national manager for policy and government affairs, said: “The fact that Australia Post is now admitting that it is ramping up its efforts in cost reduction to address further declines in letter volumes demonstrates that it has once again opted for the easier option of requesting price increases for services it enjoys a monopoly with, rather than implementing cost savings and working towards efficiency gain.”

Tchamkertanian (pictured) added that the survey results demonstrated a widespread belief that Australia Post hadn’t exhausted other options for addressing the decline in letter volumes.

“Many respondents believe Australia Post’s drive for efficiency has been based on pushing costs up the supply chain to mail houses and printing businesses and that technological innovation has not been fully exploited,” he said.

The survey has formed part of the association’s lodged submission to the ACCC. A decision is expected from the ACCC on 28 May.

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