Fed: Stamp price hike licked

AAP General News (Australia)
12-08-2009
Fed: Stamp price hike licked

BRISBANE, Dec 8 AAP - Australians won't be paying more to send a letter for the time
being, with the competition watchdog objecting to a price hike in stamps.

Australia Post proposed to increase its basic postage rate from 55 cents to 60 cents,
but the Australian Competition and Consumer Commission (ACCC) on Tuesday knocked back
the application.

Australia Post also wanted to boost the price of its Small PreSort Letters by 2.6 cents
and larger versions by five cents.

ACCC chairman Graeme Samuel said in a statement the demand for stamps was decreasing
and prices needed to match demand.

"The ACCC is unable to agree to Australia Post's proposed price increases at present,"

Mr Samuel said.

Australia Post said it was disappointed with the decision, with spokesman Alex Twomey
saying the basic postage rate had not kept pace with inflation over the last two decades.

"If it had, the price of the 55 cent stamp would actually now be 70 cents," Mr Twomey said.

Australia Post can revise its pricing submission and seek a final ruling by the ACCC
and the federal communications minister.

Australia Post said it would review the preliminary decision before discussing it with the ACCC.

AAP ka/pjo/cdh

KEYWORD: STAMPS UPDATE

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