COSBOA and LPO Group say Australia Post’s retail network should evolve to deliver more value for small businesses and communities, with the Senate inquiry an important opportunity to examine its long-term sustainability, accessibility and role in delivering essential face-to-face services.
The Council of Small Business Organisations Australia (COSBOA) and LPO Group have each made submissions to the Senate Environment and Communications References Committee inquiry into the management of, and plans for, Australia Post’s retail network.
Licensed Post Offices (LPOs) are themselves independent small businesses, while Australia Post says 88 per cent of its customers are small businesses.
For many communities, particularly in regional, rural, remote and outer metropolitan Australia, the local post office provides access to services that are increasingly difficult to find face-to-face, including banking, identity verification, passport and government services.
COSBOA CEO Skye Cappuccio said the discussion about the future of LPOs needed to consider not only how many outlets remained open, but what people and businesses could actually do when they walked through the door.
“For small businesses, a local post office provides access to services they rely on every day,” Ms Cappuccio said.
“For a small business, having to travel to another town or suburb to do banking, send freight, verify documents or complete an important transaction costs time and money, and takes someone away from running the business.
“We absolutely understand that Australia Post has to change, as the way Australians communicate, shop and send goods changes.
“This isn’t about trying to preserve the past. Rather, we should be asking how we make the most of an extraordinary national network that already exists in communities across Australia – from banking and identity services to government transactions and parcels – while making sure the small business owners operating much of that network have a sustainable business model.”
COSBOA’s submission also raises concerns about the commercial pressures facing LPO operators, including whether remuneration reflects the cost of delivering services and the impact that changes to licence arrangements could have on operators who have invested in their businesses.
Ms Cappuccio said small business operators should not be expected to carry disproportionate commercial risk where they have limited control over key decisions affecting their revenue and costs.
“If these small businesses are going to continue playing such an important role in the national network, the commercial settings have to stack up for the operators delivering those services,” Ms Cappuccio said.
“LPO operators employ people, pay rent, invest in their premises and carry the same rising costs as every other small business. They need fair, transparent commercial arrangements and a genuine voice when decisions are being made that affect the viability and value of their businesses.”
LPO Group Chair Scott Etherington said the inquiry should look beyond headline outlet numbers and examine the services available through the network.
“An outlet can remain on the map while the services available from the counter change significantly. The real measure is not simply presence – it is capability,” Mr Etherington said.
“Banking, identity and government services give people a reason to use their local post office and help sustain the independent small businesses operating them.
“Parcels are an essential part of Australia Post’s future and nobody is suggesting otherwise. But parcels and services should work together.
“We have an established national network, trained people and infrastructure already in place. The opportunity is to make better use of it and give communities more reasons to use their local post office, not fewer.”
Ms Cappuccio said the inquiry was an opportunity to consider how the network could evolve while maintaining access to the face-to-face services small businesses and communities rely on.
“Modernisation shouldn’t mean fewer options for small businesses and communities.
“Australia already has an extensive network of local post offices, operated in large part by small business owners. We should be looking at how we support their long-term viability and make the most of the services and infrastructure already in place,” Ms Cappuccio said.
