20 August, 2020
Post price hike "a slap in the face" for bush businesses
MARANOA MP David Littleproud has slammed Australia Post for trying to force bush businesses to pay more to have their products delivered, while city areas benefit from huge discounts.
Post has confirmed parcel prices will increase by 13.49 per cent for regional,
rural and remote areas, while metropolitan areas will have their prices slashed
by up to 32 per cent. The organisation stated a lower density of parcels and
variable transport costs in regional areas as the key drivers of the price
“Australia Post increasing its parcel postage prices for regional, rural and remote areas is another slap in the face for small businesses in regional areas,” Mr Littleproud said.
“Bush businesses that have already battled to keep their doors open through prolonged drought and the Covid-19 pandemic are facing yet another financial hurdle with Australia Post’s price hike on regional parcel postage.
“Through the drought we have seen a rise in regional, rural and remote businesses taking their products online to diversify their customer base, and those businesses are now paying the price for their success.”
Mr Littleproud said one Maranoa business owner had produced evidence showing their parcel cost increase was in fact between 20 to 40 per cent, rather than the 13.49 per cent Australia Post had suggested.
Mr Littleproud also detailed one example where it was cheaper to post a 10 kilogram parcel a distance of 2004 kilometres across Australia from Brisbane to Adelaide, than it was to post the same parcel 417 kilometres along the New England Highway from Warwick to Tamworth, New South Wales, merely because the capital rate was much cheaper than the remote rate.
“This is yet another example of regional businesses being put on the back foot by decisions made in capital cities,” Mr Littleproud said.
“Not only are these cost increases having a major impact on small businesses in regional areas, but they are also counterintuitive to post-Covid economic recovery.”
Mr Littleproud said he had written to the Minister for Communications asking for an investigation into these regional cost increases and the resulting impacts for businesses outside metropolitan areas.
“I will always fight for our bush businesses to ensure they receive fair treatment, no matter where they are located,” Mr Littleproud said.