ONE of the services that we all take for granted in life is that of posting and receiving mail, but things are changing for that basic enterprise.
Apparently, there was a federal regulation passed in 1989 saying that there must be a minimum of 4000 Post Office outlets Australia wide.
Of those some 2500 must be located in rural and regional areas.
It is understood that we have some 4271 post offices in operation today.
Providing that service has meant that the business operated at a loss in excess of A$200 million for the year 2023, which was reduced to an $88 million loss this past year.
This shows that management is well on the way to returning this 214-year- old business back to the black.
Some years ago, the way to solve the financial issues being experienced by the Post Office was to sell off their smaller outlets to private operators. These operators were able to build the businesses by retailing products other than postal services, whilst still providing a traditional service.
Thus retaining the larger turnover outlets in higher traffic locations, delivering better economics.
However, business and communication kept developing in a different direction.
Fax machines arrived for message transfers, which later developed to emails.
Now everyone has a mobile phone and some just talk to their wrist watches.
We are now at the stage whereby the head of the Post Office has declared that we simply don’t need the same number of post office outlets.
I assume that his direction is to have the regulation controlling the number of post offices reduced in the near future.
Whilst technology has seen the letter delivery side of Australia Post reducing rapidly, their most recent report says their parcel delivery business has boomed, becoming the future for their return to profitability whilst retaining their traditional letter services.
The post office, like the railways and Service NSW, has continued to offer excellent service in a friendly and efficient manner.
I’m sure that we will all be delighted when these enterprises return to regular profitability.
I certainly welcome the direction these vital industries are now moving in and wish them good speed in achieving profitability whilst retaining a great service.
By John BLACKBOURN