ACCC gives stamp of approval to Australia Post increase
The ACCC has nodded its head in response to Australia Post's February 2008 draft price notification.
The proposal saw Australia Post seek an increase to the basic postal rate for a standard letter from 50 cents to 55 cents along with an increase to the prices of other reserved services including large letters and pre-sorted mail.
Graeme Samuel, chairman of the ACCC said that the group had taken a forward-looking approach to its assessment of Australia Post's pricing proposal.
"Based on this analysis, the ACCC's preliminary view is to not object to the price increases," he said.
"However, the ACCC requires that any future price notifications be supported by a robust ... proposal, that provides certainty to users of Australia Post's services about prices for a reasonable period of time, which the ACCC suggests should be at least three years."
When Australia Post announced its intention to increase prices earlier this year, the news was met with opposition. "An unjustified postage price increase is the last thing the industry needs," said John Gilroy, of Major Mail Users.
The ACCC is currently seeking submissions from interested parties on its preliminary views. Submissions close on 4 July 2008.
