With the Government plans to sell its remaining shareholding in Telstra exploding on a variety of fronts this week (for example here and here and here, it was interesting to see Prime Minister Howard come out fighting on the 7:30 report on ABC TV tonight. In that stoush The Prime Minister said that the government had a “conflict of interest” owning the shares in Telstra and controlling the regulatory regime. This is the situation with Australia Post.
While the government hides behind the provision of postal services in its comments about why Australia Post cannot be privatised, it does not answer the charge of the conflict in controlling the regulatory regime which delivers exclusive and low cost consumer traffic to the Australia Post shops where the government also sells stationery, greeting cards and many other lines traditionally offered by independent newsagents.
The government is a very happy 100% shareholder of this retail driven business and seems to have no qualms that it is taking revenue from the struggling small business sector.
The government has double standards here. The argument it uses to support its sale of the remaining share of Telstra applies to the government owned Australia Post retail stores. The government has no business owning these and it ought to divest to individuals and small businesses as a matter of urgency.
I have no qualms with the Licenced Post Offices as they are owned and operated by small business people. My issue is with the government owned retail stores competing with newsagencies like mine and using their government ownership to provide an unfair advantage.
That’s a conflict of interest!