none
none

THE CHEQUE’S IN THE POST

10-02-2017
by 
in 

There aren’t many public sector operations outside the Royal Australian Mint that are literally a licence to print money. But it seems that Australia Post is just such an organisation – for its senior executives.

Over the years, the publishing industry has had a reputation for making spectacular profits. The media barons of the 20th century bear this out. But where are they now? The publishing landscape has changed radically.

However, those of us that do still publish magazines and newspapers have been massively frustrated by the declining performance and hugely increasing costs of our distribution network – operated on a Commonwealth-sponsored monopoly basis by Australia Post.

We do appreciate that the economics of running a postal service are complex. And there is not a single service worldwide that seems to be able to turn a profit from a basic mail service. But in under-resourcing its mail service through reductions in personnel while simultaneously increasing prices by a massive 35% during the last six months, Australia Post is not endearing itself to the publishing business.

The fact that its financially under-performing postal service is more than compensated for by its massively profitable parcel service speaks more of its privileged position as the “national carrier”. Frankly, with the continued growth of online shopping, if you can’t make money out of a parcel service with an inbuilt competitive advantage then you don’t deserve a salary, let alone a seven-figure bonus.

So how palatable is it that this under-performing public sector organisation is making the fortunes of its MD and other senior executives?

Not only did the MD receive $5.6 million, another five executives received between $1.3 million and $1.8 million a year and one claimed a $380,000 retirement benefit. All this while laying off posties and gouging an extra 35% from anyone wanting to send a letter – or mail a few thousand magazines.

The mail is a public service. It is a keystone of national infrastructure.

It is not a licence to print money for executives.

Related news & editorials

  1. 12.02.2018
    12.02.2018
    by      In
    INDUSTRY UPDATE MAGAZINE SETS NEW RECORD WITH 100TH EDITION
    On Thursday 8th February 2018, Industry Update set a new record with advertisement sales for the February/March 2018 edition exceeding our previous “biggest edition” ever. And with three weeks before ad sales close, the total page count is... Read More
  2. 01.02.2018
    01.02.2018
    by      In
    As a small business owner myself, I have been surprised to find how poorly understood the Federal Government’s $20,000 instant asset write-off scheme is. And, as a result, small businesses have been putting off purchases simply because they don’t realise that they can claim almost immediately.
    The... Read More
  3. Scott Filby
    18.12.2017
    18.12.2017
    by      In
    As the year draws to a close, it is worthwhile to reflect on the challenges, the successes and the achievements of 2017.
    For Industry Update Media it has certainly been a successful year, with a tsunami of returning advertisers that will ensure that 2018 will be our best year ever.
    Industry Update... Read More
  4. Scott Filby
    19.10.2017
    19.10.2017
    by      In
    Twelve months ago I promised you a revelation in the delivery of trade media! Today, I am very proud and happy to announce that I have delivered on my promise with the recent launch of the Industry Update Manufacturing Videos series, which is hosted by national TV icon, Tim Webster.
    Tim is best... Read More