The peak body for independent post office operators has spoken out in support over the long-term future of Cobargo Post Office.
The Licenced Post Office Group is concerned the local licencee Dave Wilson may soon be pushed by Australia Post into relinquishing his perpetual agreement for a fixed term contract.
President Scott Etherington said the value of his business could change significantly.
“We don’t know what Dave’s gonna have to choose from at the end of this process and if Australia Post is offering a fixed term agreement and sitting the cherry out there to try and entice him to sign for it to move to this new agreement we don’t know if this is something people are going to be interested in buying,” Mr Etherington said.
.”We don’t know where he’ll end up. He could end up worse then he is today with a fixed term agreement instead of a perpetual licence.”
The LPO Group also echoed concerns over the diminishing profitability of local independent post office businesses.
The industry body said Cobargo Post Office is being impacted by Australia Post’s focus on the low profit postal and parcel side of the business at the expense of other more lucrative areas like selling retail products.
He said the reduced service and retail offerings to the Cobargo community is threatening the outlet’s viability.
“While there has been numerous deletions of products and services over the past five years there has vern very few of any additional products or services we can add. Certainly not much that adds to the bottom line of licencees without these additional revenue streams of profit options for us,” Mr Etherington said.
“As small businesses these outlets are going to go out of business,” he said.
The Licenced Post Office Group reports five post offices in NSW have closed in the past week.
Mr Etherington said he fears for the future of the Cobargo outlet unless Dave can find other revenue streams to subsidise providing the postal service.
“That’s what he is doing, subsidising. The fact that the post office is going to be in Cobargo and the postal services that he provides there don’t cover the costs to keep it there,” he said.
“The sad reality is that it is likely. We are not a magic porridge pot. We can’t just keep the lights on without no money.”
