NZ Post to slash mail delivery days from 2015
Published: 1:46PM Wednesday October 23, 2013 Source: ONE News
New Zealand Post is set to cut urban deliveries to three days a week starting from 2015.
In the face of declining volumes, the state-owned postal service has made changes to its Deed of Understanding with the Government for the first time in 25 years.
Though NZ Post sought to cut rural deliveries by the same amount, Communications and IT Minister Amy Adams has confirmed that rural deliveries will be maintained at five days.
"Through negotiations, I have secured agreement from New Zealand Post that it will limit any introduction of a minimum three-day delivery to only urban areas, maintaining five-day delivery in rural delivery areas," she said.
"It is important to note that three-day delivery is the minimum standard New Zealand Post must meet. This means that New Zealand Post may continue to provide a higher frequency of delivery in some non-rural areas."
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The changes come into effect from June 30, 2015.
Ms Adams said the minimum standards would not apply to express or fast post, couriers or parcels.
The Government has also agreed that NZ Post will continue to run a retail network of "at least 880 points of presence", with personal assistance available in at least 240 kiosks.
"This will give comfort to members of the public who may feel anxious at the prospect of the introduction of self-service kiosks," Ms Adams said.
The company reported a 29% drop in profit last year as its traditional letters business weakened and it wrote down the value of some postal assets.
"Around the world postal volumes are declining. In New Zealand this is at a rate of about 8% per annum," Ms Adams said.
Ms Adams said if changes were not made, the Government could end up subsidising NZ Post by more than $30 million a year.
Mixed reaction
There has been a very mixed reaction to NZ Post's decision to cut back services in coming years.
The Engineering, Printing and Manufacturing Union (EMPU) says it is "incredibly disappointed" by the news.
"These changes herald massive cuts to postal services," says Joe Gallagher, the EPMU's postal industry organiser.
"New Zealand Post is a vital public service which returned a profit of $121 million in 2013. It should be focused on delivering for Kiwis, not cutting essential services to turn bigger profits," he said.
However, Federated Farmers is "thrilled" that NZ Post will continue to keep rural deliveries to five days a week.
Federated Farmers National President Bruce Wills said many rural businesses are still heavily reliant on a five day service.
"Whilst technology is changing the way we communicate and eventually we will see a decline in postal deliveries, we are not there yet.
"There are still some 86,000 rural people off-line, where rural post is a daily fixture in the running of their business and household," said Mr Wills.
