Australia, insurance, car, home, live, holidays

"We're just a bit cautious":Australia Post CEO Christine Holgate.Credit:Daniel Munoz

Growth in domestic business-to-consumer parcel deliveries has slowed from 19 per cent in the fourth quarter of last financial year to about 11 per cent in the first six weeks of the new year,she said. Meanwhile,growth in the number of inbound parcels from China fell from around 40 per cent last year to between 11 and 13 per cent at the start of the year.

"They’re two,quote,big swings - they’re not negative[growth],they’re still positive - but they are quite big swings,so we’re just a bit cautious,"Ms Holgate said.

Significant falls in the delivery of electrical products and clothing seem to be behind the overall decline. Ms Holgate said it was too early to say what exactly caused the drop,but suggested it could be due to warm weather denting demand for winter clothing,and a softening housing market doing the same for household electronics.

Still,the former Blackmores vitamins boss,whose experience in Asian markets was seen as a major factor in her appointment last year,talked down fears that political tension between Canberra and Beijing could hurt trade and other business opportunities.

Growth in parcel deliveries is helping make up for a decline in the letters business.Credit:Ryan Stuart

Chinese tourist numbers were at record highs,Ms Holgate said,while Alibaba - the e-commerce giant often referred to as China’s Amazon - this week revealed Australia was the most in-demand destination for products from its hundreds of millions of customers.

"There is over a million people living in Australia with Chinese heritage... so whatever happens as we debate important policy between our two countries,there is still really incredibly people to people[relationships],"she said."And no matter what,you don’t stop that."

Seeking a better deal from banks

While parcel deliveries were picking up the slack from falling letter deliveries,$2 in parcel revenue was needed to make up profits of every $1 lost in the letters business,she said.

Ms Holgate said that was one of the reasons Australia Post needed to strike a better deal with banks on how much it charges their customers to use post offices for paying bills and making other transactions,which it is losing money on at the moment.

“It is critical for securing our post offices in the community - without it,we run into real challenges,"she said.

Australia Post answers to its only shareholder,the federal government,through the ministers for communications and finance. Both of those positions were vacant on Friday.

- with AAP

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