Jointly developed for users of Autralia Post's bulk mail services, this Code commits both Australia Post and MMUA to working together to promote and develop the postal industry (both in its paper and electronic forms) to ensure its competitiveness and relevance in the fast changing communications sector.

CODE OF PRACTICE

jointly developed for users of Australia Post's Bulk Mail Services by Australian Postal Corporation and Major Mail Users of Australia Limited 21 October 1999.

This Code of Practice has been developed jointly for users of Australia Post's bulk mail services by Australia Post and the Major Mail Users of Australia Limited (hereafter MMUA).

Both Australia Post and the MMUA are committed to working together to promote and develop the postal industry (both in its paper and electronic forms) to ensure its competitiveness and relevance in the fast changing communications sector.

The aim is to encourage a total quality culture.

In that context this Code has been developed having particular regard for users of Australia Post's bulk mail services.

It codifies the principles to which Australia Post and the MMUA are committed in further enhancing relationships between Australia Post and those major postal industry participants - many of whom are members of the MMUA.

From a commercial perspective, where appropriate, contracts with Australia Post will govern those relationships.

From an industry perspective, however, this Code of Practice will play an important role in setting broad principles and standards underpinning those commercial dealings and in creating a context for services that jointly develop growth opportunities.

Australia Post and the MMUA commend the Code's adoption. (signed) Linda Bardo Nicholls - Chairman, Australia Post (signed) Graeme Davis - President, Major Mail Users of Australia Limited

(1) - COMMON GOALS

In developing this Code, both Australia Post and MMUA have acknowledged the need for:

Both Australia Post and the MMUA acknowledge the importance of:

* business partnerships between Australia Post and major organisations using its bulk mail services.

In furtherance of those goals, both Australia Post and MMUA will, as appropriate to their constituencies:

* promote awareness of this Code;

* encourage its application;

* review the Code's relevance, from time to time, to ensure it embraces contemporary developments.

(2) - DELIVERY STANDARDS

When lodged correctly (in accordance with Post's terms and conditions for lodgement), the delivery standard for bulk pre-sorted mail, irrespective of its priority, will be no less than that for ordinary letters of the equivalent priority - see Schedule 2.

(3) - DELIVERY PERFORMANCE

Australia Post's commitment is to provide 94% delivery of bulk pre-sorted mail on or within the specified delivery standards.

Independent Monitor

To verify delivery performance, and to remedy any network deficiencies, Australia Post is committed to the introduction of an independent monitor of bulk pre-sorted small letters delivery performance:

That independent monitor is to be developed and tested in consultation with MMUA with a view to its introduction during 2000.

The results of the independent monitor will be published quarterly.

Australia Post and MMUA will consult regularly in regard to network areas which, according to the advice of the independent monitor, are performing below the guaranteed service level and which require remedial action.

ANAO Report

The delivery of bulk pre-sorted letters will also be the subject of annual report by the Australian National Audit Office as part of its performance evaluation. (*)

(*) Subject to KPMG and ANAO certification of the system's methodology.

(4) - COMMERCIAL DEALINGS

The parties recognise that contractual relationships are matters to be negotiated directly between Australia Post and users of its bulk mail services.

Australia Post will consult with users of its bulk mail services and the MMUA in developing new prices for the reserved services.

Appropriate prior notification will also be given by Australia Post to the Australian Competition and Consumer Commission (ACCC) of any proposed price increases to reserved services.

Australia Post undertakes that, in its pricing for major services, recognition will be given to:

* costs saved by Australia Post through work undertaken by its customers (eg pre-sorting, barcoding); and to

* the sharing of productivity gains, secured by Australia Post, amongst all stakeholders. MMUA recognises that:

* Australia Post is required to generate a commercial rate of return for its owners;

* the bulk pre-sorted letter service is an important contributor to Australia Post's commercial success; and that

* through being profitable Australia Post will be best positioned to reinvest in its network and enhance service to its major customers. In its commercial dealings Australia Post will:

* act fairly; in providing access to services;

* act equitably; in its service and price offerings;

* act legally; complying with all relevant trade practices and other relevant legislation including reference to the ACCC where appropriate; and

* act supportively; eg by working with its customers to develop, jointly, growth opportunities (including through training and educative projects).

For its part the MMUA commits that its Members will:

* be bound by an MMUA Code of Business Practice; which will have as conditions of MMUA membership:

- the discharge at all times by each member of their allocated and accepted responsibilities with integrity and respect for the interests of the public, their clients, suppliers, employees and fellow members of MMUA;

- compliance with the laws of Australia; - the observation of strict confidentiality of information in business dealings; - full and proper disclosure of all relevant postage matters wherever a Principal and Agent legal relationship exists; and

- a commitment to maintaining commercially sound working relationships with Australia Post and to provide for their clients an assurance of knowledge and practice such that the appropriate products and services are used; postal terms and conditions are understood and satisfied, and clients benefit from co-operative innovation.

(5) - OPERATIONAL ARRANGEMENTS

Australia Post will apply operational policies and procedures consistently throughout Australia, subject to:

* local arrangements that improve handling efficiency, delivery timeliness or customer service; and

* acceptance and understanding by users of the need for quality inputs (eg accuracy of lodgements) to the postal system.

The emphasis in the operational relationship between Australia Post and the users of bulk mail services will be on total quality, complete with full and proper feedback to improve quality, rather than recriminatory behaviour.

The aim is to assist at all times with:

* national operational policies and procedures supported by local arrangements that enhance service;

* accurate lodgement documentation;

* speedy acceptance; and

* efficient, on-time delivery.

(6) - PROBLEM RESOLUTION

A key objective of this Code is to promote a harmonious and mutually beneficial commercial relationship between Australia Post and users of its bulk mail services.

It is important, therefore, to have a shared commitment to key principles which will minimise the level of problems and to support those principles with procedures for resolving difficulties that arise.

Four key principles are:

* users of bulk mail services will present mail in accordance with the agreed terms and conditions of each postal service;

* Australia Post will receive and process mail efficiently within such terms and conditions;

* wherever possible, disputes should be resolved speedily and fairly; and

* the aim of Australia Post and users of bulk mail services is to resolve such disputes, wherever possible, without recourse to legal action.

Where operational or commercial disputes arise:

* they will be resolved in accordance with the Problem Resolution Procedure outlined in Schedule 3.

(7) -CONSULTATION AND REVIEW

Australia Post and the MMUA will continue to consult, from time to time, on the application of the Code and its relevance to contemporary developments. A formal review of the Code will take place every two years.

SCHEDULE ONE

DEFINITIONS

* Bulk Mail Services - includes bulk full rate mail and the pre-sort letter service, AdPOST service and PrintPOST.

* Delivery Standard

- means the standard set for either "regular" or "off peak" delivery.

SCHEDULE TWO

DELIVERY STANDARDS - BULK PRE-SORTED MAIL

The delivery standards for bulk pre-sorted mail are:

INTRASTATE

* Within metropolitan area of capital cities or within the same city or town and environs

- Normal - 1 Business Day

- Off-Peak - 4 Business Days

* Between metropolitan areas of capital cities and country locations within the same State

- Normal - 2 Business Days

- Off-Peak - 5 Business Days

* Between country locations in the same State

- Normal - 2 Business Days

- Off-Peak - 5 Business Days

INTERSTATE

* Between metropolitan areas of capital cities in different States

- Normal - 2 Business Days

- Off-Peak - 5 Business Days

* Between a metropolitan area of a capital city and a country location in another State

- Normal - 3 Business Days

- Off-Peak - 6 Business Days

* Between country locations in different States

- Normal - 4 Business Days

- Off-Peak - 7 Business Days

SCHEDULE THREE

PROBLEM RESOLUTION PROCEDURE

1. Disputes of an operational nature might include:

* the acceptance of mail under AdPost conditions; or

* the acceptability of lodgement documentation. Such disputes should be resolved locally, if at all possible.

2. Disputes of a commercial nature might include:

* a claim by Australia Post for further payment in relation to a mail lodgement; or

* a claim for reimbursement by a customer arising from unsatisfactory performance by Australia Post. Such claims will be assessed on a case by case basis.

3. The first point of reference within Australia Post for users of bulk mail services will be their individually appointed Account Manager or State Sales representative.

4. In the event that Australia Post's national policies and procedures are unclear between Australia Post and any customer which cannot be resolved at those levels then the matter should be referred to the State General Manager; and then, if still necessary, to the Group Manager, Letters (Fax [03] 9639 0445) for resolution.