Australia Post is not using its clout to cross-subsidise operations to give it an unfair advantage, ACCC says
Australia Post is not using its clout to cross-subsidise its operations to give it an unfair advantage, according to the competition watchdog.
The Australian Competition and Consumer Commission has released its fourth report assessing if Australia Post’s services were being cross subsidised in the 2007-2008 financial year.
The report looks at whether the mail carrier’s competitive services were being supported with revenue from services over which government provides Australia Post with a monopoly.
But ACCC Chairman Graeme Samuel says the latest finding is consistent with previous reports.
“Australia Post’s logistics services continue to be cross-subsidised, and the source of that cross-subsidy appears to be Australia Post’s other competitive services rather than its monopoly services,” Samuel says.
In the report, Australia Post says it revenue growth in logistics services was not enough to absorb the significant investment the company made in logistics.
The government-owned entity also blamed deteriorating economic conditions and operational changes as the reasons why there was an under recovery of revenue for logistics services.