THE decision to cut interstate next-day guaranteed post for most of the state has been labelled ``disappointing'' and a ``penalty to businesses''.
From April 8, Australia Post will no longer guarantee overnight interstate deliveries for Express Post items for most parts of Tasmania.
The exception is the greater Hobart region.
Launceston Mayor Albert van Zetten has expressed his extreme disappointment in the decision.
``The issue of connectivity to major markets on the mainland is critical to Launceston and to Northern Tasmania,'' Alderman van Zetten said.
He said the Launceston City Council would be aggressively contesting the decision.
The Launceston Chamber of Commerce and state peak employer body, the Tasmanian Chamber of Commerce and Industry, have both vowed to fight to overturn the cut-back.
Launceston Chamber of Commerce acting executive officer Maree Tetlow said the decision was another example of how Launceston would be disadvantaged compared to the rest of the country.
TCCI chief executive Michael Bailey said the organisation would be seeking clarification from Australia Post on its decision.
``If Australia Post can maintain the service for Hobart, I find it difficult to understand why it cannot continue for the rest of Tasmania,'' Mr Bailey said.
``This is a service that all Australian taxpayers pay for.''
All three bodies have highlighted how the service cut-back would severely disadvantage businesses _ a point that has been reaffirmed by JLH Auto Electrical manager John Farrell.
Mr Farrell said the Launceston mechanics business regularly had to order parts overnight from interstate businesses.
``It will be a huge disadvantage for us and our customers . . . we service a lot of commercial customers as well as your everyday Joe on the street _ this will have huge flow-on effects,'' he said.