biggles04
Banned
Where will we be when the government postal service no longer exists?THE traditional engine room of Australia Post – its letters division – is on the decline as more people turn to email or SMS to keep in touch.
Australia Post today reported a one per cent lift in net profit to $374.9 million for the 2004-05 year, off a record $4.32 billion in revenue.
But the letters division's earnings fell almost $57 million to $248.3 million.
Australia Post chairman Linda Nicholls said the impact of electronic substitution on the letters business was being felt globally.
"With our letter prices currently frozen and our costs rising with the addition of around 200,000 new addresses each year, growth in letter volume is going to be the crucial element determining our future profitability in the letters business," Ms Nicholls said.
In 1960, the letters share of the total messaging market totalled almost 50 per cent but by last year it had shrunk to 14 per cent.
Advertisement:
The bulk of that market is now dominated by transactional letters such as the mailing of accounts, bills, statements and cheques.
Social letters involving letters, postcards and private greetings amount to just five per cent of the market.
But Australia Post is not yet prepared to accept defeat in letters.
*writes new Young Communists' Party policy*