Good mail on privatisation

Australia is grouped together with a small cohort of countries that have engaged in partial liberalisation of postal services during the 1980s and 1990s.

In 1989 the Hawke government enacted the Australian Postal Corporation Act, which 'corporatised' Australia Post entailing that the organisation would be subject to general taxation and regulatory requirements similar to those facing private sector businesses.

The objective of corporation was to improve Australia Post's efficiency by enforcing it to act 'as if' it were a private entity whilst remaining under government ownership, with the Communications Minister being Australia Post's sole 'shareholder.'

The Act, and subsequent legislative developments, reduced the degree of exclusive monopoly rights held by Australia Post in the distribution of heavy-weight letters and parcels helping to enhance the growth of private courier services.

These measures were steps in the right direction, however other countries have proceeded further down the road of postal services liberalisation.

In countries such as Germany, Malaysia and the Netherlands the government post offices have been either partially or completely privatised, mainly through the public offerings of shares.

The monopolistic rights accorded to government post operators to carry letters have also been abolished entirely in several countries, including Germany, New Zealand and Sweden.

Australia should follow the path of the postal reform pathbreakers to improve the efficiency of the presently government - owned postal carrier, and deepen postal and courier services markets.

At the very least Australia Post should be fully privatised, and could be expected to perform effectively as a private operator given that it has existed for almost a quarter - century on the 'training wheels' of corporatisation.

What of the community service obligations applicable to the carriage of letters and physical services accessibility?

One option could be that the government sell off the rights to a bidding company to deliver the CSO arrangements for a fixed term on a least cost basis.

However in a country characterised by ever - increasing access to internet services, such as email and online bill paying facilities, and greater private sector competition there is a case to further liberalise the regulatory requirements entailed under the CSO.