About a decade ago the Howard government proposed that private companies could charge market rates for the delivery of letters weighing between 50 and 250 grams, a reform not implemented due to political considerations.
The government's 'no privatisation' stance is lamentable, as it deprives consumers of the potential benefits provided by the realisation of private sector efficiencies.
And in the short term to not privatise government assets also deprives the government of financing options to plug its yawning budget deficit gap.
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But with the radical innovations witnessed in communications markets over the last two decades, no sound rationale remains for the government provision of increasingly antiquated letter and small parcel postal services.
There is still some lucrative low hanging fruit of prospective privatisation ripe to pick; it is time for the government to pick it.
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About the Author
Mikayla Novak is a Research Fellow with the Institute of Public Affairs. She has previously worked for Commonwealth and State public sector agencies, including the Commonwealth Treasury and Productivity Commission. Mikayla was also previously advisor to the Queensland Chamber of Commerce and Industry. Her opinion pieces have been published in The Australian, Australian Financial Review, The Age, and The Courier-Mail, on issues ranging from state public finances to social services reform.
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