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NCC recommendations will lead to the bush paying more for postal services.



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MEDIA RELEASE

 

NATIONAL FARMERS FEDERATION

AUSTRALIA

 

20 May 1998

NR 5l/98

 

NCC RECOMMENDATIONS WILL LEAD TO THE BUSH PAYING MORE

FOR POSTAL SERVICES

 

The National Farmers' Federation today rejected a recommendation to deregulate the business postal se rvice, on the grounds that it would lead to the bush paying more for standard postal services than the cities.

 

At its Annual General Meeting in Canberra, NFF expressed concern about some of the recommendations of the NCC Review of Australia Post.

 

“If they are implemented, some of these recommendations would lead to an erosion of current and future postal services in rural and regional Australia, which are currently highly competitive by international standards”, the Chair of NFF’s Farm Business Management Committee, Ian Macfarlane said.

 

“NFF also rejects funding of the Community Service Obligation through a mechanism other than internal cross subsidy”, Mr Macfarlane said.

 

“The Vaile Inquiry agreed that cross subsidies continued to be the most appropriate and administratively effective means of paying for the CSO”, he said.

 

“These NCC recommendations will result in higher charges in rural and regional areas for postal services, compared with our urban counterparts”.

 

“Australia Post will continue to play a crucial role in rural and regional Australia, not just for the efficient delivery of postal items, but also because of other non-statutory services it offers, such as Giropost, banking, bill paying and tax return filing”, Mr Macfarlane said.

 

“Australia Post is more important to people in the bush, as they do not have access to telecommunications equivalent to their urban counterparts”, he said.

 

Ian Macfarlane, Chairman

Farm Business

Management Committee

02 6270 8955 (AGM)

0418 790 874

 

Mark Grimson

Assistant Director, Rural Policy

NFF

02 6270 8955 (AGM)

0417 698 814