Australia Post plan sparks concern for regional post offices

A Leaked Australia Post business case has prompted concern about the future of rural post offices and sparked a Senate inquiry into proposed changes to the national postal network.

The Post Office Network & Licensed Post Office Reimagined plan includes the closure of some metropolitan outlets and could also encourage regional operators to shift away from perpetual licences to alternative operating models.

Member for Parkes Jamie Chaffey said the proposals highlighted the importance of protecting regional post office networks.

In addition to Australia Post-operated Post Shops in Narrabri and Gunnedah, the region has 14 licensed post offices and community postal agents across Narrabri West, Wee Waa, Bellata, Gurley, Burren Junction, Gwabegar, Pilliga, Mullaley, Carroll, Curlewis, Spring Ridge, Tambar Springs and Premer.

In some of those more rural and remote communities, the local post office is a vital community service and one of only a handful of businesses in a particular town or village.

“Many people in my electorate prefer to do their banking, post parcels and letters to their loved ones, and pay bills face to face rather than online,” Mr Chaffey said.

“But the services of Australia Post are not only costing more; they’re becoming fewer and fewer. These services, some of the very few available to quite a number of my communities, are being whittled away.”

Mr Chaffey said he had phone calls from no fewer than six licensed post offices across the Parkes electorate speaking up against the slow undermining of regional post offices.

“As one licensee said: ‘This is not just a commercial concern. When a small community loses its post office it loses much more than a place to send parcels; it loses its last point of banking, government services, JP functions and human contact with essential services. These networks that exist today took generations to build and cannot easily be replaced’.

“Regional people once again are treated like second-class citizens. People are paying more and more, but less and less is being delivered.”

Mr Chaffey told parliament he is looking forward to the spotlight being shone on Australia Post “at the Senate inquiry that will look at this government-owned business’s leaked plans to close up to 36 metropolitan post offices and change the licensing agreements to regional and rural post offices”.

“The leaked business case, Post Office Network & Licensed Post Office Reimagined, dated June this year, envisages widespread changes to regional and rural post offices that could see them become nothing more than a parcel locker,” he said.

Australia Post sought to allay concerns about the plan’s impact on rural areas, saying its focus was on addressing metropolitan areas where there is often a significant overlap of services competing with each other in close proximity. No final decisions have been made.

Addressing Senate estimates, Australia Post group chief executive officer and managing director Paul Graham said licensed post offices play a vital role in supporting communities, especially in regional Australia.

“Last year commissions rose to $604.2m to support our LPO partners – updated Bank@Post agreements will further boost future payments – and we continue to invest in technology and services to help more than 2,600 licensees adapt as customer needs evolve,” he said.

“We are acutely aware of the financial challenges facing some licensees as over-the-counter transactions continue to decline year-on-year and more customers shift to digital channels. Australia Post is focused on presenting practical measures to improve the overall sustainability of individual licensees and the broader LPO network.”

The Australia Post retail network Senate inquiry started on 24 June, with submissions closing on 7 August. An inquiry report is due by 12 October.