John Madigan (Victoria, Democratic Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Communications, Senator Fifield. Minister, in reference to recent announcements by the CEO of Australia Post, Mr Fahour, that Australia Post will be slashing around 900 jobs over the next 12 months, can the minister outline exactly where the 900 job losses in Australia Post will be from?

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

Thank you, Senator Madigan, for your question and for the notice. The decision to which Senator Madigan refers has been taken by the management and board of Australia Post and does reflect the significant structural challenges the company is facing. Australians are sending fewer letters. About one billion fewer letters have been sent in the last five years as Australians increasingly communicate using email, SMS and social networking sites. We are quickly approaching the point—as early as next financial year—where losses from the letters business is so large that it can no longer be subsidised by profits from the parcels business. The job reductions to which Senator Madigan refers will not come into effect immediately. They will be phased in over 12 months. This will affect the size of Australia Post's back office and support functions, including managerial and administrative roles. These are mostly located at Australia Post's corporate headquarters in Melbourne.

John Madigan (Victoria, Democratic Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister outline any expectations the minister may have for any further job losses over the next 12 to 24 months within Australia Post?

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

I should add, in conclusion to the previous question, that the company has made a public commitment that no customer-facing services, such as retail workers and posties, will be affected as a result of the decision announced on 10 June.

In direct response to the Senator Madigan's first supplementary question: as a government business enterprise, these are the types of decisions that are managed by the board of Australia Post. It is important that we recognise that, as I said before, Australians are choosing to send fewer letters, placing the sustainability of the company under great pressure. Australia Post already has made a combined loss in its regulated letters business of more than $400 million over the last two financial years. This trend will continue to accelerate as letter volumes continue to fall by more than eight per cent each year. The fact is that Australians are making the active choice to send fewer letters.

John Madigan (Victoria, Democratic Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Australia Post has refused to rule out the offshoring of quality Australian jobs. Can the government rule out this prospect for them?

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

Operational and staffing matters are the responsibility of the Australia Post board. The government is confident that the management and board of Australia Post will continue to manage the company in the best interests of all Australians. It is a company that is responding to significant and worsening structural challenges. Australia Post, as I alluded to, expects to make a total company loss—for the first time since corporatisation—as early as next financial year. Australia Post's management are absolutely committed to ensuring that the long-term sustainability of the company and their decisions reflect this commitment.