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How is a sewing machine related to postal services?

australia-post.JPGThe poster in the window of the government owned Australia Post shop opposite my newsXpress Forest Hill store offers a set of saucepans, a digital photo frame, a notebook computer and a sewing machine.  Yes all from our government-owned Australia Post.  I don’t think they actually sell them from the shop floor since the poster lists the price as DELIVERED and I can’t see stock on the floor for purchase.  Click on the image for a larger version of the poster.

These products being available at the Post Office mocks the Postal Corporation Act 1989.

Section 14 of the Act requires Australia Post to provide a postal service first and foremost:

The principal function of Australia Post is to supply postal services within Australia and between Australia and places outside Australia.

Section 15 talks about permitted subsidiary functions:

A subsidiary function of Australia Post is to carry on, outside Australia, any business or activity relating to postal services.

Section 16 talks about other permitted functions:

Functions incidental businesses and activities

(1) The functions of Australia Post include the carrying on, within or outside Australia, of any business or activity that is incidental to: (a) the supplying of postal services under section 14; or (b) the carrying on of any business or activity under section 15.
(2) Without limiting subsection (1), the functions of Australia Post include the carrying on, within or outside Australia, of any business or activity that is capable of being conveniently carried on: (a) by the use of resources that are not immediately required in carrying out Australia Post’s principal or subsidiary function; or (b) in the course of: (i) supplying postal services under section 14; or (ii) carrying on any business or activity under section 15.

The last federal government and the current one have permitted Australia Post to take millions of dollars in revenue from small business. The situation is getting worse.

The federal government deregulated newspaper and magazine distribution saying that newsagents needed to get into the competitive world.  It is a pity that they have not applied the same competition rules to the business they own.

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  1. Michael

    It stitches up small business.

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  2. rick

    i cant see any way that AP will stop what they are doing, if we make enough noise it will force the govt to make changes, but only to the wording of the Postal Corporations Act. The govt likes the dividends it gets from its monopoly, far better to change the wording and keep banking the cheques.

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  3. Lance of Coolum

    I had a letter last week from Australia Post Insurances wanting to quote on motor vevicles insurances.

    About the only connection to Postal business would be if I had to post a cheque to them.

    Thanks AP Insurances, but I prefer to keep my vehicles covered by someone I have faith and confidence in.

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  4. David

    Mark I admire your commitment to this issue but it appears to be getting nowhere not only with the politicians but also with vana and the anf. They appear to have given up on AP. I agree with you but do wonder where we take this.

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  5. jw

    AP are in too deep, many of their Corporates and licensees are unviable without the non postal items so they stuff up everyone elses business to lever some viability into their own, pollies wont rock to boat too much or their will be no plum jobs on boards down the track

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  6. Blake

    Lawers: Why don’t one of the newsagent associations pay one to find out for sure if the AP is in breach. Especially regarding this latest flyer (I got one of those in my mail and thought it was going way too far)

    Make sure that it’s good from the lawyer to go public, blog post, get local politician involved etc.

    If they are doing something illegal then lets put a stop to this.

    In the last month I’ve received 3 “blue” cards, 2 “red” cards only to be told there is nothing for me to collect – did they give my mail to someone else or did they put the card in the wrong box?

    Also there was 3 yellow card mail items (Australian Air Express) sitting in their office for 3 weeks before they gave the packages to me (you could see the postmark stamp). Express courier mail sitting for 3 weeks because of their incompetence.

    Give up selling goods if you can’t do the mail right.

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  7. kellie

    our post office is across the road and he is starting to do us harm first with the ink cartridges and when we stop supplying them not long after he starts buying them from gns, i beleive they are do not have a big mark up on aust post products so this is why the one here has said he purchases things from else where so he can make some profit but the things in his catalogue etc are getting way out of hand with things like the sewing machines and hardware products and other things but what can we do?

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  8. Jarryd Moore

    AP operates within the Act by way of Section 16 (2) …

    “the functions of Australia Post include the carrying on, within or outside Australia, of any business or activity that is capable of being conveniently carried on: (a) by the use of resources that are not immediately required in carrying out Australia Post’s principal or subsidiary function”

    The only way we will see any change is if the legislation itself changes. Given the government’s stake in AP and their responsibility to the AP franchisees it is unlikely that the kind of change newsagents are looking for would ever eventuate.

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  9. Mark

    While AP and politicians use that as their out, we let them by not energetically pursuing our position. Politicians in fear of losing their job will listen. We just have to make them realise that we could achieve this. Yes, it won’t happen.

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  10. Graeme Day

    Kellie,
    What do you mean they the Post Office buy them from GNS?
    If this is true the why are we complaining about our opposition when we are supplying them.
    It’s a bit like the cowboys in America supplying the Injuns with guns.

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  11. Squee!

    Graeme,

    Its probably an LPO (Franchise), they can pretty get products from any supplier that isn’t a postal product or an AP generic product.

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  12. shaun s

    if it is true about GNS , how funny is that we OWN a company that is in direct competition with us .

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  13. rick

    any newsagent that cant out do AP, officeworks, hatvey norman just isnt trying. they are not that cheap if you look at their promos, i easily out do all the majors, and still maintain a good margin. the key, apart from price, is range dont go at it half assed, give it some wall space in a good location, and then promote it. ink works well for me

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  14. Charlie

    The post office in our centre also buys from GNS .

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  15. kellie

    the way i found out the ink cartridges came from gns is that the parcel was delivered to us by mistakes and i opened the invoice not reading you it was to, i did not know how he was able to do that and asked our gns rep and he said any one can buy from them which i was angry about as i thought gns was for newsagencies not aust post,rick where do you buy your cartridges from

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  16. rick

    dynamic supplies, i stopped using gns for ink 2 years ago due mainly because of the poor condition that they arrived in, often had squashed boxes. have found dynamic very good, they will airfreight fis for orders over $250 so long as not too big an order, so mostly overnite delivery and im in fnq. i only deal in genuine cartridges, also gave the generics away, too much hassle.

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