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) (a) Australia Post relocated the Coorparoo Post Office in May 2011 in order to maintain postal services for local business and private customers. The relocation was forced by the shopping centre owner who wished to redevelop the centre where the post office was originally located. Under the redevelopment proposal there was no option for the Post Office to stay at the existing location.

(b) The Coorparoo Post Office was relocated as a Licensed Post Office. This change in business format was required due to the limited time available, the need to maintain customer service and the franchisee's decision to terminate their franchise agreement with Australia Post in lieu of relocating to the new premises.

The outlet was moved approximately 700 metres from its previous location.

(2) It was always Australia Post's intention to relocate the franchised post office subject to the availability of suitable premises. The franchisee declined the opportunity to relocate the franchised post office to the new premises which lead to the outlet being relocated as a licensed post office.

(3) Australia Post sought to relocate the Coorparoo Post Office as a franchised post office. The franchisee declined the opportunity to relocate the franchised post office to the new premises leading to the outlet being relocated as a licensed post office.

(4) Australia Post and the franchisee exchanged numerous pieces of correspondence relating to the proposed relocation of the franchised post office and their ultimate decision to terminate their franchise agreement with Australia Post in lieu of relocating to the new premises.

As this correspondence involves a party external to Australia Post and relates to our dealings under a commercial agreement, we are not at liberty to provide copies.

(5) Australia Post had extensive communications with the franchisee relating to the proposed relocation of the franchised post office and their ultimate decision to terminate their franchise agreement with Australia Post in lieu of relocating to the new premises.

It is understood that the franchisee was advised subsequent to electing to terminate their franchise agreement of the decision to establish a licensed post office at the new location.

(6) Refer to Response for Question 1 above.

(7) The Coorparoo Post Office was relocated as a Licensed Post Office. This change in business format was required due to the limited time available, the need to maintain customer service and the franchisee's decision to terminate their franchise agreement with Australia Post in lieu of relocating to the new premises.

(8) Prior to relocating, available sites in the Coorparoo area were assessed for suitability with consideration to a range of factors.

The current site was assessed by Australia Post as being the most suitable available premises.

Due to the redevelopment of the shopping centre there was no option to remain at the existing location.

(9) Australia Post maintained ongoing communication with the franchisee regarding the relocation with available information being provided regarding the proposed site and their options under the terms of the franchise agreement.

(10) During the period of relocation the Federal Member for the area was kept advised on our progress for locating a new site. Australia Post was sensitive to the community's concern over any potential closure of the Coorparoo post office and accordingly advised customers as soon as possible when the decision on the new post office location was made.

Due to the redevelopment of the shopping centre there was no option to remain at the existing location.

(11) Australia Post and the franchisee exchanged numerous pieces of correspondence relating to the proposed relocation of the franchised post office and their ultimate decision to terminate their franchise agreement with Australia Post in lieu of relocating to the new premises. Available information was provided to the franchisee regarding the proposed site and their options under the terms of the franchise agreement.

(12) Australia Post understands this question refers to its licensed post office and/or franchised post office agreements. With regard to these agreements, copies are provided to prospective operators during the course of the assessment/selection process in advance of the agreement being entered into.

(13) Australia Post understands this question refers to the Confirmation of Termination of Postshop Franchise Agreement notice provided by Australia Post to the franchisee.

This notice to the Coorparoo franchisee was issued in confirmation of their election to terminate the franchise agreement and provided details of relevant terms and conditions relating to this termination. It indicated that Australia Post would deem the acceptance of the exit payment as being, in respect to the franchise agreement, full and final settlement and constitute a release and discharge from all and any claims.

A notice consistent with that provided to the Coorparoo franchisee would be provided to other outgoing franchisees in the event of a termination of a franchise agreement in similar circumstances to Coorparoo.

(14) As this notice involves a party external to Australia Post and relates to its dealings under a commercial agreement, Australia Post is unable to provide a copy.

(15) (a) Advisory councils have the general purposes of enhancing communications between a franchisor and their franchisees and for the development and exchange of ideas for the betterment of the network as a whole. They do not act as a forum for resolving issues relating to individual franchisees.

Australia Post and the Coorparoo franchisee had extensive communications relating to the proposed relocation of the franchised post office and their ultimate decision to terminate their franchise agreement with Australia Post in lieu of relocating to the new premises. In addition to this communication directly with Australia Post, the franchisee also had available to them the dispute resolution process as provided by the Franchising Code of Conduct and specified in the franchise agreement.

(b) Australia Post advised prospective franchisees that a Franchisee Advisory Council would be established only when the number of franchised outlets in operation was sufficient to allow this forum to operate effectively. As Australia Post has not reached this number of outlets it believes the most effective way to manage its relationship with franchisees is through the current one-to-one interaction with their dedicated network manager.

(16) Existing Australia Post franchisees were advised during their assessment/selection process that a Franchisee Advisory Council would be formed only when the number of franchised outlets in operation was sufficient to allow this forum to operate effectively.

(17) Yes, Australia Post received correspondence from Queensland based franchisees regarding the situation with the Coorparoo franchise. Australia Post took steps at that time to address the concerns of these franchisees.

(18) No. Australia Post has not received ministerial direction regarding its franchise businesses.