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) It is Australia Post's intention to conduct itself in a "fair and reasonable" manner in all matters relating to the administration of the LPO Agreement.

  (b) As part of reaching agreement with the outgoing licensee on the compensation payable under Clause 22, Australia Post will consider a range of factors that may include the licensee's submission on the market value of the underlying business. Australia Post's considerations are subject to the contractual terms provided under the LPO Agreement.

(2) (a) The LPO Agreement provides that either party may terminate the Agreement subject to providing 90 days notice to the other party.

  (b) The LPO Agreement provides that termination compensation shall be an amount agreed between Australia Post and the licensee. "However such amount shall not be less than an amount equal to the Business Revenue over the period of twelve (12) months prior to the date of termination nor greater than that amount multiplied by three (3)."

  (c) Australia Post's policy documents with respect to Clause 22 are commercial-in-confidence. Either party to the LPO Agreement may decide that they do not wish to maintain an ongoing licensee/licensor relationship. Australia Post may decide to exercise its rights under this clause for matters such as, but not be limited to, network planning considerations, a loss of trust and confidence in Australia Post's relationship with the licensee or a loss of trust and confidence in the suitability of the licensee.

(3) Mr Ward ceased employment with Australia Post in March 2007.

Mr Ward's employment with Australia Post was not directly related to policy work in relation to Clause 22 of the LPO Agreement.

(4) Australia Post has not, and does not intend, to invoke Clause 22 as a bargaining tool against licensees who request fair payment under their LPO Agreement.

(5) Australia Post does not agree that an independent public review of a decision to terminate an LPO Agreement under clause 22 would be fair and reasonable.

The relationship between Australia Post and any licensee is governed by the terms of the LPO Agreement and further defined through the Franchising Code of Conduct. It is appropriate for both parties that any decision to terminate the licensee/licensor relationship is undertaken in accordance with these provisions.

(6) (a) The General Manager Retail Sales & Service approved the termination of the LPO Agreements for Vaucluse and Campbell Town.

  (b) The compensation payment will be an amount agreed between Australia Post and the former licensee subject to the contractual terms provided under the LPO Agreement.

  (c) Australia Post is not in a position to advise the market values of each LPO.

  (d) Refer to answer (c) above.

  (e) In the matters mentioned, agreement has not been reached on the figure for business revenue. The current offers made by Australia Post have been in accordance with the terms of the LPO agreement and based on information available to Australia Post, information provided by the respective former licensees and negotiations to date with each of the former licensees.