ACCC issues final decision on postage rises

The ACCC today issued its final decision not to object to Australia Post's application to increase the basic rate of postage.Australia Post has proposed to increase the cost of basic domestic postage from 50c to 55c.The next stage in the process is for Australia Post to apply to the Minister for Broadband, Communications and the Digital Economy for approval. POAAL has today written to the Minister, urging him to approve the increase.The Chairman of the ACCC, Graeme Samuel, said that the ACCC has established "a framework for future price notifications that will encourage Australia Post to continue to reduce costs, improve productivity, and provide more certainty for Australia Post's customers."Australia Post has proposed to bring the price rise into effect on 15 September 2008. Prices will also rise for large letters as well as small and large presort bulk mail.A flow-on effect will be the welcome increase in some payments to Licensees.