Australia Post 'user-pays' model could hurt charities

As Australia Post struggles to adapt to a changing communications environment, floated solutions to a dire financial situation could be a serious threat to the not-for-profit sector.

Recently, Aus Post Chairman, John Stanhope, suggested that a service charge to receive daily deliveries could be implemented to help pay for a $218m deficit, which is largely the result of fewer letters being posted. The move would result in many Australians accepting a less frequent service, which would hurt businesses and charities as well as individuals.

Let’s look at it from Mr Stanhope’s point of view. As the volume of post shifts to parcels rather than letters, and the effectiveness and importance of online increases, surely mail is less important, right?

"If you want it fast, you pay for it," Mr Stanhope said. "You want it more related to the cost base, so if you are happy enough for your letter to be delivered less frequently then you pay less, if you want it more frequent you pay more”

Unfortunately this point of view is a generalisation and it ignores the function of mail as a service in the public interest.

Millions of Australians still rely on post to receive and pay bills, to be informed of government and community announcements or keep up to date with notices of local infrastructure and service changes. Most households aren’t aware when this information is coming or whether it’s important or not – so how can they be made responsible for it?

The risk is that the importance of the frequency of that communication might not be clear to the recipient; people who choose not to pay for daily mail might be negatively impacted.

The ABC makes an important argument about the negative impact on low-income earners and people living in regional areas. But the consequences of ‘user-pays mail’ could have significance across demographic and geographic boundaries.

Being someone who checks his post box once a week, I personally don’t see value in receiving daily deliveries – so I’m unlikely to pay for it – and I’m not motivated to look at the potential impact on my household financially or socially. I will almost certainly receive less frequent bill payment reminders or community information notices – this could cost me financially and limit opportunities for me to be involved with my local community.

While mail is still important to such a large proportion of the population; so long as individuals open and read almost all the mail they receive; Australia Post will remain a vital national provider of communication. This message needs to be communicated to Mr Stanhope and Australia Post to ensure this model, or approaches like it, are not adopted now or in the future.