Australia Post has revealed the grim future forward for the organisation except severe intervention is made to assist it develop into worthwhile.
Chief government Paul Graham supplied the element in an handle to the American Chamber of Commerce in Australia (AmCham) in Melbourne on Thursday.
Mr Graham mentioned Australians’ use of the postage service had plummeted constantly over the previous a number of many years regardless of the web purchasing sector increase.
“Ever since the global financial crisis our traditional business model has been eroding and the deterioration in our outlook is gathering pace,” Mr Graham mentioned.
“Until the year 2000, mail volumes tracked the economy – growing at around the same rate as gross domestic product – but after Y2K mail volumes began to flatline.
“Then, during the GFC, mail volumes fell by 5 per cent – and they have been falling ever since.”
Mr Graham mentioned the digital shift had been “dramatic” for the organisation.
“Since 2007-08 mail volumes have fallen by 66 per cent, and per-household mail volumes are expected to halve in the next five years,” Mr Graham mentioned.
“The reasons for this dramatic shift – email, apps and smartphones – have been well documented.
“We are spending more and more money to deliver fewer and fewer letters. The average household today receives less than two letters per week and sends less than 3 per cent of all mail.
“As a result, we will post a financial loss this financial year with our letters business after posting a $189m loss for the first six months of this financial year alone.”
Mr Graham mentioned most Australians have been unaware of the challenges dealing with the nationwide postage service.
“Our extensive research shows that just one in 10 Australians are aware that we are no longer profitable,” he mentioned.
“It’s a stark message but the Australian community must understand that without change to their national postal service, its long-term viability is at risk.”
Mr Graham mentioned adjustments have to be made in laws that impacted Australia’s postal providers.
“The imperative for change is clear. We are governed by the 1989 Australian Postal Corporation Act – an instrument legislated before the internet boom and the creation of smart phones when letters were the dominant form of communication, online shopping was yet to take hold and digital service provision largely did not exist,” he mentioned.
Mr Graham additionally took purpose at different nationally important Australian manufacturers that he identified have been not owned by taxpayers.
“Australia Post is one of the last of Australia’s great, publicly owned commercial endeavours,” he mentioned.
“Qantas is no longer owned by Australian taxpayers, neither is Telstra. Australia Post is.”
Australia Post introduced final week 400 jobs have been set to be axed by the top of the monetary yr.
It comes after the organisation revealed in March that it was bracing for “significant losses” because of a decline in letter deliveries after the federal authorities launched a dialogue paper aimed toward modernising the organisation.
Source: www.perthnow.com.au
