(22 October 2010 – Australia) David Murray, chairman of the Future Fund, has been engaged in talks with the Labor government about the possibility of developing a massive branch network through Australia Post.Mr Murray, former chief executive of the Commonwealth Bank, has opposes Australia Post using its own balance sheet to provide deposits and loans, however has called for its 3,800 branches to be used as a financial services supermarket.
Mr Murray told The Australian newspaper that the move would not only provide a shot of competition for the banking sector, but would also deliver protection for the Australia Post branch network as postal services come under pressure.
”Trying to find things to fill it up with … often results in a sub-optimal outcome … and the government would have to end up subsidising the existence of the network,” Mr Murray said.
Australia Post’s latest results show its revenue and earnings falling as email continues to grow and mail volumes shrink.
Australia Post reported an after-tax profit of just A$89 million last financial year, compared with A$260 million the previous year.
The appointment of former National Australia Bank executive Ahmed Fahour has spurred speculation that the postal group is looking to secure a banking licence.
Mr Fahour has continued to rule out a banking licence, while supporting the growth of financial services.
”We will be continuing to grow the financial services products that we offer today,” he said.