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Australia Post inquiry: key agencies to give evidence



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HOUS E OF RE P R E S E N T A T I V E S STANDING COMMITTEE ON TRANSPORT, COMMUNICATIONS AND INFRASTRUCTURE

PARLIAMENT HOUSE CANBERRA ACT 2600 TEL: ( 06 ) 277 4601

FAX: (06) 277 2067

25 O ctober 1995

MEDIA RELEASE

AUSTRALIA POStW q UIRY KEY AGENCIES TO GIVE EVIDENCE

The House of Representatives Standing Committee on Transport, Communications and Infrastructure will resume its public hearings on its inquiry into Australia Post's rural and remote letter delivery services on Thursday, 26 October 1995.

The focus of the inquiry is on Australia Post's community service obligations. Australia Post is required by law to deliver a standard letter from anywhere to anywhere in Australia at a standard rate (45 cents), regardless of the costs incurred.

Committee Chairman, Peter Morris, MHR said this hearing will be one of the most important as key agencies will give contrasting views on the extent to which Australia Post should be exposed to further competition.

In 1992, the Industry Commission proposed that Australia Post should be exposed to full competition and cross subsidies should no longer be used to pay for the cost of community service obligations.

The Department of Finance, however, supports the use of cross subsidies to pay for community service obligations 'as a matter of practicality'.

Australia Post asserts that any further reduction in the reserved letter service will seriously disadvantage people in rural and remote areas.

The w itn e sse s a p p e a r in g inclu de:

9.30 am Industry Commission 10.30 am Department of Finance 11.30 pm Professor Rodney Maddock, Latrobe University 12.30 pm Australia Post

The hearing will commence at 9.30 am on Thursday, 26 October 1995 in Committee Room 1S3, Parliament House, Canberra.

F urther in form ation :

Mr P eter M orris, M HR C om m ittee S e c r e ta r ia t (S tep h en Boyd) (06) 277 4520 (06)277 4597