Australia Post grilled over PR, credit card costs

The postal service revealed it had spent almost $120,000 on a Sydney-based public relations firm ahead of a senate appearance.

The Federal Government has been consulting on proposed changes to Australia Post’s delivery cycle.

Australia Post spent almost $120,000 over two months on an external public relations firm ahead of chief executive Christine Holgate and other executives being grilled at a senate inquiry about changes to its community service obligations.

The office of Australia Post’s managing director amassed a credit card bill totalling more than $287,000 last financial year, the same period in which Ms Holgate requested regulatory relief from the government.

In the meantime, The Australian can reveal Communications Minister Paul Fletcher has been quietly consulting with chief executives of some of Australia’s biggest companies, asking them whether the Morrison government should end the regulatory changes, which allow Australia Post to deliver mail every other day in cities and push out deliveries on some routes, earlier than the scheduled end date on June 30 next year.

In a series of questions from Labor, Australia Post, via Senator and Defence Minister Linda Reynolds, revealed it had spent almost $120,000 on Sydney-based public relations firm Domestique, which it formally engaged on June 23 this year after it completed about three weeks’ work for the postal service.

Domestique provided a team of four to Australia Post, providing advice on seeking public and government support to maintaining the regulatory changes for the full period and preparation for the Senate inquiry.

“Australia Post has been invoiced for, and paid, for services provided to July 31, 2020, to the value of $119,178.40,” Senator Reynolds said, adding the firm was hired to “provide communication planning and advice services, and issues management advice services”.

“Domestique is a corporate communication and reputation management firm regularly retained by a large number and wide range of Australian corporations and organisations. It provides advice to Australia Post as required on issues as they emerge.

“In 2019, there were discussions with Mr Thornton (and Australia Post) around a potential engagement, which did not proceed with Domestique. For the current engagement, Domestique was formally engaged on June 23, 2020, but was involved in discussions from early June 2020, and remained engaged at August 31, 2020,” Ms Reynolds said.

“Domestique was engaged directly, in accordance with procurement policies and procedures, authorised by Australia Post’s executive general manager community and consumer.

“Australia Post’s EGM community and consumer Nicole Sheffield recommended Domestique be engaged in June 2020.”

Opposition communications spokeswoman Michelle Rowland branded the spending a waste.

“Why is Australia Post spending $4000 a day on public relations consultants in the middle of a recession? This is simply not appropriate,” Ms Rowland said.

Mr Fletcher has written to business leaders requesting they provide feedback to his office or department on the temporary regulatory changes the government granted Australia Post earlier this year.

A spokesman for Mr Fletcher said a review is underway and will determine whether the relief should continue for the full period up to June 30 next year and will incorporate feedback from businesses – large and small.

“The Morrison government is committed to supporting Australia Post to continue providing important postal services for all Australians during the COVID-19 crisis,” Mr Fletcher’s spokesman said.

“As part of the review, the Minister has written to representatives of Australia Post’s workforce, licensed post office franchisees, large and small businesses and the print industry seeking views on the impact of the regulatory relief. The government will finalise its review by the end of this year.

“Questions regarding use of credit cards and other corporate resources are a matter for the Australia Post board and should be directed to Australia Post.”

An Australia Post spokeswoman said Domestique was no longer on retainer but still engaged to provide advice to the postal service.

“Domestique is currently engaged by Australia Post to provide communication planning and advice services, and issues management advice services”.

“It’s very common for organisations to engage corporate affairs advice and they represent some of Australia’s largest brands. They are not on an ongoing retainer.”