No cross-subsidy from reserved services

The Australian Competition and Consumer Commission last week issued its annual report into cross-subsidy between Australia Post's reserved service and other services, which found that the reserved service (60c stamp) is not subsidising any part of Australia Post's business.The ACCC was given the power to issue record-keeping rules in response to complaints by Australia Post's competitors that Australia Post was cross-subsidising its competitive services with revenues from its monopoly services."The regulatory accounts do not show that Australia Post is cross-subsidising its competitive services with revenue from its monopoly services," ACCC chairman Rod Sims said."In fact, the 2010-11 report found Australia Post's non-monopoly services as a whole were a source of subsidy," Mr Sims said.The full report can be downloaded from the ACCC website.