Communications Minister Malcolm Turnbull has backed transferring some of Medicare and Centrelink's frontline duties to Australia Post to help combat the ''existential challenge'' of declining letter revenues.
The proposal, which is being considered by the Abbott government's commission of audit, has been supported by Treasurer Joe Hockey and post office operators. Welfare groups and the union representing public sector workers oppose the idea, claiming it could lead to longer queues, poorer customer service and job losses.
Chief executive Ahmed Fahour revealed in February Australia Post is set to record its first loss in more than three decades in the second half of the current financial year.
Mr Turnbull, the minister responsible for Australia Post, told an Australian Information Industry Association conference last week: ''You need about 3.5 dollars of parcel revenue to make up for a dollar of lost letter revenue and we're not seeing that. Australia Post has very big existential challenges [and] that feeds into the viability of post offices, including licensed post offices.
''One way to address the viability of those post offices, in order to support them and of course deliver better government services, is to use them as locations for the delivery of Medicare services, Centrelink services [while] recognising there are limitations in terms of expertise.''
Matthew Knott
