Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Hansard source

The answer to the honourable senator's question is as follows:

(1) Franchisees are supported through a network manager within each State. Depending on the number of franchisees this network manager may also have other functional responsibilities.

(2) Australia Post committed to providing franchisees with ongoing dedicated support. Franchisees receive this support through their network manager.

(3) (a) Yes, Australia Post sought accreditation of its franchise model from the major banks.

(b) Westpac, the Commonwealth Bank and the ANZ bank have all given the Australia Post franchise business model "accredited franchise status". Australia Post provides a variety of documentation and other information to each financial institution as part of their assessment and decision with respect to business model accreditation for their purposes.

(4) These banks will periodically seek advice from Australia Post around both the licensed post office and franchised post office business models as part of continuing their accreditation for models.

(5) Australia Post has sought to maintain these accreditations for both the licensed post office and franchised post office business models.

(6) No further franchises have opened since the signing of the current Fair Work Agreement.

(7) Australia Post has not provided information to franchisees around our industrial agreement negotiations and their outcomes.

(8) A copy of the current Retail Post Conversion Policy is attached. This policy does not affect the franchised PostShop model.

(9) The previous formal agreement (EBA) expired on 31 December 2006.

(10) Yes, specific clauses relating to the franchise model were included in the previous agreement (EBA). In summary these provided:

(11) Australia Post advised prospective franchisees that its plans for establishing a network of around 150 franchised outlets would be achieved through a combination of the conversion of existing corporate outlets, conversion of licensed outlets and the establishment of new sites.

(12) The successful implementation of the franchise business model formed part of the performance objectives for a number of Australia Post managers.

(13) The management of costs is integral to any successful business. Australia Post managers who are responsible for business costs are rewarded on achieving business objectives around these costs.

(14) The franchise business model and associated agreement will at the end of the current franchise terms have been in place for some 10 years.

The significant changes which are taking take place within Australia Post, as well as developments within the franchise sector generally, will need to be considered in determining the future of the franchise model beyond the terms of the current individual agreements.

A determination has not been made on the operating model that will be in place at existing franchised post offices beyond the term of the current individual agreements.

Existing franchisees have taken up the franchise opportunity on the basis that the agreement is for a 10 year term only and that there is no provision within the agreement for an extension of this term.

(15) Existing franchisees have taken up the franchise opportunity on the basis that the agreement is for a 10 year term only and that there is no provision within the agreement for an extension of this term.

At the end of the term, payment is made to the exiting franchisee in accordance with an agreed formula. This is fully disclosed to the franchisee prior to entering into the franchise agreement and is in accordance with the franchising code of conduct.

Australia Post would however consider exiting franchisees for a further term where the future business model allows and the franchisee is deemed suitable.