Licensee or Public Submissions to ACCC for BPR Increase

Please add your voice to this campaign!

UPDATE 14/10/2015: The ACCC has confirmed that they will continue to accept submissions until 29/10/2015 - however, please see below for more details.

UPDATE 15/10/2015: The LPOG submission has been received by the ACCC and will be published by the ACCC on their web site in due course. To view the LPOG Submission please download it here: 

LPOG_ACCC_submission 15 October 2015.pdf

We all need to write a submission to the ACCC to impress upon them how good the idea of a $1 BPR is. The submissions need to be individual and personal. Form letters are not worth the paper they are printed on. 

BPR Calculator

The ACCC has not objected to Australia Post's draft proposal to increase the BPR to $1. This means it will happen on the 4 Jan 2016 as the Government has already agreed it is necessary.

In order to offer a better understanding to Licensees as to how critical this lift is for LPO's viability, LPOG provides the worksheet below to show Licensees what the impacts of this lift will have on our individual LPOs.

Print off the Instuction sheet below, have your June LIPOMs in hand and open the Analysis sheet. Input data into the yellow and blue fields, and the final YTD figure at the end of your LIPOMS. 

You can see how much this will change your business and it is fantastic. 

LiPOMS Analysis_BPR Impact 2015 (protected).xlsx               Instruction Sheet LiPOMS_BPR assessment tool (instructions).pdf

The default setting for the increased BPR is set at 85c. It is quite clear that the BPR at 85c will not satisfied the viability issues for most LPOs. Once you change 85c to the requested $1 the results for most LPOs improves greatly.

LPOG Gathering in Qld

LPOG Board with Bossie and Senator Nick Xenophon

The QLD Committee hosted  a Suppliers Day, the 2015 LPOG AGM followed by our Gala Dinner over the October long weekend. LPOG members and guest Licensees were treated to glorious Qld weather, finished off nicely with a fireworks display at the conclusion of the After Party River Cruise. 

LPOG members were delighted to welcome the Former Senator Ron Boswell and Senator Nick Xenophon who joined us for the evening festivities. Since retiring after 31 years as a Senator, Bossie has been raising the issues of small business needs in the bush. He has a very deep understanding of how important the LPOs, the IGAs and the Chemists are to rural communities, and he is as committed to assisting our cause as he was 2 years ago when he was first introduced to our mess.

Senator Nick Xenophon as always is an inspirational speaker who gets to the pointy end of issues very quickly. His words on the reality of our "David and Goliath" battle resonated throughout the room, and he satisfied a lot of our doubts and questions with his support of the pathway we have taken. So much so that when he graciously took questions from the floor, he only got one taker. He had already covered the rest. 

It was quite emotional when the very appreciative Licensee body rose to their feet to give both these gentlemen a resounding, well deserved standing ovation.

Further Increased Payments Announced

Check your outlook messaging for the official update in regard to increased payments being introduced for LPOs that accommodate contractors/PDO.

An extra $1.083 for handling of carded articles for these contractors. The LPOG membership sincerely hopes that you enjoy this added shot in the arm, pre the anticipated BPR lift, which is expected to be on the 4 Jan 2016. As this increased payment, as well as the previous parcel increase, is contingent on the BPR lift, please help us to achieve the anticipated $1 BPR by adding your voice to the ACCC submissions.

M2D Break Even Point Calculator

The old cumbersome M2D (Mail today) product has been replaced for the last few months for a trial period for any existing customers, and any POB renewal customer who were offered the service earlier this year. The trial is being discontinued at the end of September and the new improved 'free '(for the POB holder) is being introduce for all from 1 October.

News of Extension of Parcel Payments Expected

In Nov 2014, as a result of the Senate Inquiry recommendations, the LPO Forum was established to work though a range of issues highlighted throughout the Senate Inquiry. The most pressing for Licensees was recommendation 17, the review of our payments in light of the claims of unfair and unreasonable payments for the work we perform. The results of this review by PIP (Partners in Performance) saw a detailed study of a range of our transaction and services investigated. The first PIP Report was published via PostLink and Licensees have been able to view this report since May this year. In response to the investigation and the results, as announced in May 2015, the payment for Street Carded Article was increased to $1.60, to match the cost to provide this service, as per the PIP Report.

While LPOG was relieved to achieve the increase for street carded articles for some 1800 LPOs, we were equally concerned that there are many other ways that parcels arrive at LPOs, and those parcels require just as much, if not more work. Granted most other delivery points have a MMF payment for the delivery point, however LPOG does not believe the MMF covers the cost of providing the parcel service and managing all the other work for the delivery point. Australia Post responded to our concerns with a further PIP investigation into the POB service, counter delivery points, and the impact of the increased street carded payment for LPOs that do, or do not, receive this payment.

The results of this further investigation are expected to be released in the next few days, with notification of increased payments for a further range of LPOs that previously missed out on increased parcel payments. As with all of the payment issues under review, it is not as much as LPOG would like, but it is also far more than Australia Post has been paying.

Mail Reform Legislation

As of 7.26 pm we can confirm that the Mail Reform regulations have been passed by both houses of Parliament. This is the start of our much needed reform and now we can focus on the ACCC and the much needed lift for the BPR to ensure the survival of the LPO Network.

Mail reform legislation must pass for the survival of LPOs

With two sitting days left, LPO Licensees many of whom are financially stressed, are now extremely anxious for mail reform legislation to pass through parliament.

The LPO Forum which was established after a Senate Inquiry, has made strong headway into setting the groundwork for LPO payment reform to address issues raised by Licensees regarding inadequate payments for the activities performed at LPOs on behalf of Australia Post. Many of these issues have been validated with two independent field studies conducted by PIP.

Australia Post has made it clear that even the LPO payment reform achieved so far is contingent on mail reform including a $1 BPR. It would be an absolute disaster for LPOs if this legislation was derailed or delayed. We ask all parties and independents to remain supportive of the plight of 2980 Licensed Post Offices which service communities throughout Australia.

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