‘Stark’ Australian Post warning: Your letters are at risk as $189m losses mount

“We will post a financial loss this financial year with our letters business, after posting a $189 million loss for the first six months of this financial year alone,” Graham mentioned.

“Our extensive research shows that just one in 10 Australians are aware that we are no longer profitable.

“It’s a stark message however the Australian group should perceive that with out change to their nationwide postal service, its long-term viability is in danger.”

Graham pointed to shrinking household mail volumes and customers embracing flexible options like parcel lockers over traditional delivery methods as reasons for Australia Post’s declining profitability and said the case for change is clear.

“We are ruled by the 1989 Australian Postal Corporation Act,” he said.

“(It’s) an instrument legislated earlier than the web increase and the creation of smartphones, when letters have been the dominant type of communication, on-line purchasing was but to take maintain and digital service provision largely didn’t exist.

“Performance standards issued under the Act are no longer fit for purpose to Australia Post as an enterprise or to the customers and communities we serve every day.”

Graham’s deal with comes forward of public session for a federal authorities dialogue paper on Australia Post’s future closing at midnight tonight.

And whereas the CEO mentioned the session will assist define what sort of modifications his organisation bear, he additionally careworn the evaluate in and of itself is not the reply.

“There have been more than 11 reviews of Australia Post over the past 10 years,” Graham mentioned.

“We do not need any more to repeat the same fundamental message: that the status quo is no longer an option for our business.

“What we’d like is the dedication and goodwill from the parliament to make the modifications essential to ship a sustainable future.

“There may be a time later this year when parliamentarians are asked to consider changes to Australia Post to support the viability of the business.

“My easy request is to place the nationwide curiosity first.”

Graham also it is essential for the postal service remain publicly owned, rather than go down the privatisation route that the likes of Telstra and Qantas have taken.

“Australia Post is owned by the Australian taxpayer, however we’re not financed by taxpayers, we’re solely self-funded,” he said.

“We’re proud to be a self-funded public enterprise – and we need to stay that method.

“We want to keep delivering essential public services to Australian communities and businesses – without taking a penny from consolidated revenue.

“That is funding that ought to go to colleges and hospitals, not Australia Post.”