I’ve been into a five post offices today in Vienna and found businesses focused on postal and related products and services. More than 50% of available floor space relates directly to postal products and services. Even their retail products relate – packaging, a small range of cards, envelopes, pens and some writing pads. They look nothing like Post Shops we have in Australia. Queues were not long – the most was four during the lunch rush – and service seemed fast. In two outlets they had some CDs and DVDs but even then the range was very limited – nothing like the 90% floor space for non postal items I see in some Australian Post Shops.
One argument used by Australia Post and its apologists in the Government is that Australia Post needs to sell the non post related items to make ends meet. If that’s the case how is it that Austrian Post is doing very well, according to their Annual Report, without taking business away from independent retailers in the stationery, greeting card and magazine space?
Before a Public Offering in May of this year, Austrian Post was wholly owned by the Austrian privatisation agency ÖIAG. Now, OIAG owns 51%. A full breakdown of the ownership structure is at their website. They have with 1,338 “company owned” branches and 612 “third-party outlets”.
The government has the power to rein in Australia Post but does not. They could provide clarity in defining what Australia Post can do but they do not. They could prove their small business credentials and stop Australia Post turning its stores into newsagencies (with poor service) but they do not. There is a lot the government could learn from a visit to Austrian Post.