At R1.10, it's still a bargain
A THORNY issue for an organisation committed to an affordable universal service is pricing. Following its commercialisation when it became a company in 1991, the Post Office's business plan was to cut losses by increasing the postal tariff by 30% every year for five years.
For political reasons the actual increases applied to the standard letter rate were considerably lower than planned and operating losses were, therefore, not reduced.
After delaying any increases until its service improved, the Post Office introduced an average postage rate increase of 30% last year.
Max Maisela, chairman of the Post Office, ax Maisela says this still did not bring rates to a cost-related level. The average 10% increase in April this year, brought rates closer to such a level, although it still costs more than R1.30 for street delivery of a single letter, a service for which users are now paying R1.10.
Maisela points out that SA postal rates are "substantially lower" than other countries.