Senator the Hon Helen Coonan

Minister for Communications,

Information Technology

and the Arts

Mail Achieves—Official Opening

Major Mail Users of Australia Convention

Sydney

Wednesday 10 August 2005

 

Thank you very much Chris [Smith, President of the MMUA].

The fact that I am here again is a testament to the high regard that I hold for the MMUA.

Good morning everyone, it is a pleasure to be here once again to speak at your annual Convention.

It has certainly been an eventful year.

During this time I have enjoyed learning more about the specific issues affecting the postal sector and getting to know some of the key players in the industry.

I would like to acknowledge the President of the MMUA, Chris Smith, and the CEO, John Gillroy.

C hris and John are a credit to the industry and in my view could ask for no better representatives.

The work of your organisation is highly valued.

You provide, and indeed are, an essential source of information on a broad range of postal industry issues.

I know that historically the relationship between Australia Post and the MMUA has had its moments, but the relationship has strengthened significantly over the past few years.

These improvements are a tribute to Chris and John, and I look forward to seeing this strong working relationship continue because it can only be of benefit.

What is the industry?

Often, the postal industry was simply regarded and characterised by the lodgement and delivery of a letter.

While this is a significant part of the industry it is far from being its sum total.

I have just had the opportunity to look at some of the marvellous displays exhibiting here.

Like any successful industry it is characterised by both diversity and collaboration.

The system of creating, processing, transporting, delivering, receiving, and responding to mail are just some of the activities undertaken by industry players.

A successful industry

As Minister for the communications portfolio, I am well aware of the ever-expanding communications market.

This is such a dynamic industry and dynamic portfolio and although some may say that new forms of electronic communication are the death knell for the postal industry, I remain far more optimistic and judging by investment my optimism is shared by everyone in this room.

This Convention offers a great opportunity to learn more about these advances, with presentations from some industry leaders and the chance to inspect the partners on show.

It is good to see that you are prepared to embrace innovation and move forward.

This certainly bodes for a bright future.

And I firmly believe that with appropriate regulations and a sound and responsive policy framework, postal services will continue to play a significant role in the world’s economic and social infrastructure.

As I said last year, despite the fact we are increasingly communicating via electronic means, there really is nothing quite like receiving a letter!

Importance of mail

Globally the postal service is responsible for US $207 billion annual turnover or nearly one half of one per cent of world GDP.

This is no small figure.

The global postal service employs more than six million people and has an investment budget of US $80 billion.

It is therefore essential that mail is enthusiastically preserved and nurtured by the postal service and the mailing industry more broadly.

Reach of mail

The local industry has every reason to feel optimistic that it can meet future challenges.

Daily, approximately 20 million items are delivered to 9.68 million delivery points throughout Australia.

These 20 million items represent an increase of almost one per cent from 2003.

Mail clearly remains an essential communication tool.

Whether a small business entrepreneur or a major financial institution, mail is used to build new customers, to continue existing relationships, to build brands, and give the business a competitive advantage.

World class postal service

The Australian Government is committed to creating a World Class Postal Service.

We do have a strong record of delivering improved and expanding postal services to the Australian people.

And we have achieved this through a series of carefully designed and implemented consumer-focused policies.

For instance, during the election the Government made a commitment to maintain the standard letter rate at 5o cents.

This is among the lowest in the developed world and is a very significant policy.

Having a background in a Treasury portfolio, I can tell you I am sensitive to the fact that prices do matter, and the ability to keep rates from increasing over time will help maintain mail volumes and will continue to make mail an accessible medium.

Counter Terrorism/Crisis Management

In the age of global uncertainty the mail industry as a whole needs to remain alert to potential abuses of the mail system.

A joint initiative announced during the election will see Australia Post and the Australian Customs Service introduce state of the art technology at international mail centres as a counter-terrorism initiative.

With installation taking place over the first half of 2006, Australia Post’s counter-terrorism capabilities will be strengthened through a range of initiatives.

These include a large x-ray at the Qantas Mail Handling Unit at Sydney airport, a new generation high-speed, multi-energy x-ray for the mass examination of mail articles, and new metal detection technology at selected Australia Post facilities.

The implementation of the state of the art technology is made in conjunction with a risk management and crisis management program to improve education and training for appropriate personnel.

All these measures are designed to ensure the defence and security of Australia and Australians and unfortunately increasingly we are going to see the need for this kind of infrastructure.

Partnerships and collaboration

As I mentioned earlier, one of the essential elements for a successful industry is collaboration.

It is therefore good to see the strong partnerships that exist in this sector.

This sector is distinguished through its collaboration.

I have been particularly impressed to learn about the cooperation between Australia Post and the industry through the newly introduced Bulk Mail Partners Scheme.

The quality control mechanisms, including the benchmarking program for large volume bulk mail customers have introduced new efficiencies in the dissemination of bulk mail.

This provides benefits for both Post and the bulk mail partner as the accreditation process means that the mail originator will have greater confidence in the quality and reliability of bulk mail, as well as its continued potential in a rapidly changing environment.

It also provides other benefits for the industry by streamlining the bulk mail process and increasing the efficiency and effectiveness of bulk interconnection with Australia Post.

The development of strong and trusted relationships between Australia Post and other bulk mail partners is an important step forward for both the industry and the consumer.

I will watch with interest as further companies gain accreditation and join the scheme.

Government achievements

Bulk mail is also one of the areas where the Government is making advances.

Last year the Parliament passed amendments to the Australian Postal Corporation Act, which will expand the capacity of the Australian Competition and Consumer Commission (A C C C) to inquire into disputes between Australia Post and a person or organisation seeking access to bulk mail services.

These amendments will allow the A C C C to consider any of the terms and conditions on which the discount rate for bulk mail services is being offered.

This is a great improvement, as previously the A C C C was only able to consider the actual discount rate being offered by Post.

At present, regulations are being developed that will expand the capacity of the A C C C to examine the terms and conditions of disputes between Australia Post and a person seeking access to the bulk mail service.

These new powers will provide greater transparency and better dispute resolution for the whole postal industry, as well as a more efficient and cost effective postal service for the Australian people.

The Government of course will be consulting with the MMUA and its members in the development of the regulations to make sure we get the calibration right.

I also mentioned last year that legislation has been passed to provide the A C C C with the power to require Australia Post to keep and retain detailed auditing and accounting information.

This measure will ensure independent oversight of Australia Post’s accounting.

This applies to its reserved and non-reserved services and provides an opportunity for the A C C C to identify any possible cross-subsidisation issues.

In March this year the A C C C released the record-keeping rules for Australia Post, and its first bill of accounts is due in November.

The Government is confident that these measures will address any concerns that Australia Post might cross-subsidise its competitive products with profits made from its reserved services.

Postal Industry Ombudsman

The Government of course remains committed to the Postal Industry Ombudsman (PIO) but it must be sensible and it must be in a workable form.

The purpose of the PIO is to provide customers with a recognisable, dedicated and independent entity to investigate postal complaints relating to Australia Post and other industry operators who join the scheme.

As you may be aware, the legislation was passed in the Senate but not before the Labor Party, supported by the Australian Democrats, moved amendments to the Bill.

The amendments would see a private postal operator with 20 or more employees, or a company with an annual financial turnover of $1 million, being required to join the PIO scheme.

But the Government’s legislation was drafted following an extensive consultation process and importantly in my view, it strikes an appropriate balance between the rights of consumers, the level of complaints, really the crux of the matter and the cost and complexity of implementing a scheme.

C urrently, the Commonwealth Ombudsman handles between 900–1000 complaints per year for Australia Post.

And, there have only ever been 37, I repeat 37 recorded complaints about the delivery of postal services by providers other than Australia Post.

So I am today confirming that the Government will reject the Senate amendments and return the PIO Bill to its original form in the House of Representatives.

I believe the Bill in its original form will provide consumers and all postal operators with an avenue to more effectively resolve service disputes and to do it in a balanced way.

Election commitments

The Government has made considerable progress on our election commitments.

And we are working hard to ensure that Australia has a consumer and community focused postal regime.

Unaddressed/Junk Mail

One area of particular interest in this respect concerns unaddressed advertising material.

The Government recognises the complexities involved with this issue.

We understand that on the one hand unaddressed mail does contribute to jobs in the industry, while on the other hand not everyone likes to receive this material and their wishes need to be respected.

This makes good sense for the industry too I believe, as you can save resources by targeting only the people who are interested in receiving this type of mail.

As with most complex issues where there is certainly a diversity of views, this is one that has many angles and the Government believes that up until now the industry has regulated itself well.

The Government will continue to work with industry and raise awareness both within and beyond the sector to provide results.

Distribution Standards Board

To progress this issue, my Department has been consulting with the Distribution Standards Board (DSB).

As most of you will be aware, the DSB is an industry self-regulatory body that monitors the distribution of unaddressed advertising material.

I understand that the DSB already has a number of self-regulatory arrangements in place, including that members meet the requirements of a code of practice and comply with an associated complaints mechanism.

The Government is currently examining the options for establishing an appropriate framework and I look forward to keeping industry informed of progress in this area.

Future directions

As we look to the future, it is important that we focus on implementing strategic change that will continue to encourage competition and provide quality services.

These considerations are certainly in the forefront of my mind as I consider issues at both the national and international level.

I understand that Chris and John have informed members of the current proposal by the Universal Postal Union to create a top level dot post domain through the Internet Corporation for Assigned Names and Numbers.

If agreed, this proposal would assist developing postal administrations to enter the electronic world.

It would also establish a recognisable brand of post worldwide.

As traffic on the Internet increases, people expect greater security in communications.

Postal administrations with their reputation as secure third parties, are in a good position to provide innovative and secure services and solutions such as electronic postmarks.

As you will appreciate, the consultation and development process for international domain names is lengthy.

Negotiations are still underway and are yet to directly involve the Government.

The current focus is on technical issues and once those have been completed, the process of public consultation will begin.

I can assure you that as soon as we are able, the Australian Government will notify and consult with the wider postal industry regarding any emerging policy issues.

These technological advancements provide opportunities, whether it be raising labour productivity or allowing quality improvements.

But I think we always need to see the opportunities with the challenges.

They present a challenge to industry to remain relevant, and also to Government as we write the next chapters in the Postal Service.

Conclusion

Mail is an essential service that we all need and appreciate.

I am keen for Australia’s postal industry to continue to grow and for it to maintain its relevance in the communications market.

And so technology in my view has to be embraced.

The mailing industry must also continue working together on key issues, like educating people about more effective use of the system.

So over the next two days I very much encourage you to take advantage of the great program that is on offer, and increase your understanding of the issues that face the industry and the future of your business.

I am certainly looking forward to hearing about the outcomes of this year’s gathering.

I very much appreciate the input of industry into these issues.

It is now my pleasure to declare the Major Mail Users of Australia Convention for 2005, officially open.

Thank you.