He said Australia Post has made it clear it is sliding into major financial problems with its letters business in rapid decline, yet the post office operators say they are being driven to financial ruin because of low payments. 

The Inverell-based senator chaired the Senate Environment and Communications Legislation Committee which has completed an inquiry into the operation of Australia Post and its relationship with Licensed Post Offices (LPO).

Senator Williams said the inquiry was forced because LPO owners were fed up with what they perceived as Australia Post’s shabby treatment of them and their refusal to engage. 

He said it was obvious it could not continue, and the inquiry shone the spotlight on Australia Post’s battle to remain profitable in a digital age. The report contains 18 recommendations. 

“Foremost among them is that Australia Post, at the request of any recognised association, be required to renegotiate the terms and conditions of an LPO agreement, and that as a matter of urgency it reassess post office box payments to licensees to ensure that it reflects the true costs borne by licensees,” Senator Williams said.  “Australia Post should also review margins on postal products it sells to licensees to ensure they are in line with commercial practice, and where any payments are found to be not fair or reasonable, that a study should be conducted to determine what an appropriate payment rate should be. 

“The government has also been asked to immediately commission an independent review of the community service obligations, assess the future of mail delivery services, the number of retail outlets and the needs of remote, rural and regional communities particularly where other service providers have ceased to operate. 

“We must ensure a viable Australia Post,” he said.