Have Your Say On Changes To NZ Post’s Mail Service Obligations

As mail volumes continue to decline, changes to NZ Post’s service obligations (set out in a Deed of Understanding) are being proposed, to ensure the ongoing commercial sustainability of mail delivery, says Ministry of Business, Innovation & Employment General Manager, Communications Infrastructure and Trade, James Hartley.

“The Deed of Understanding is an agreement between the government and NZ Post which outlines certain minimum obligations that must be met. This includes mail delivery frequency and the number of postal outlets available,” says Mr Hartley.

“The way New Zealanders use the mail service has changed significantly in the 11 years since changes were last made to NZ Post’s service obligations under the Deed.

“New Zealanders are sending less mail than ever before. Compared to twenty years ago, we send around 813 million fewer mail items, and this is expected to further decline to around 100 million items by 2028.

“The 2024 Review of the Deed of Understanding is aimed at ensuring New Zealanders have ongoing access to the mail service, while providing flexibility for NZ Post to operate this service in a commercially sustainable way.

“We recognise the importance of the mail service, particularly to rural and older New Zealanders, and would like to hear feedback about how people are currently using the mail service and how the proposed changes would work for our communities.

“The proposed changes to NZ Post’s service obligations respond to this ongoing decline, while still ensuring New Zealanders can send and receive mail.

“Unlike some overseas countries, the Government does not fund the postal service, so setting the minimum obligations at the right level will ensure NZ post can operate a financially viable service,” says Mr Hartley.

There are five key proposed changes:

• Reducing minimum delivery frequency from:
  • Minimum three days per week in urban areas, to two days per week.
  • Minimum five days per week in rural areas, to three days per week.
• Reducing the minimum number of postal outlets from 880 to 500. Considering a glide down to a minimum of 400 over time.
• Providing for NZ Post to meet its requirement to extend its network in the form of delivering to cluster and community boxes for new addresses.
• Allowing NZ Post to convert existing delivery points into communal points at a rate of up to five percent per year.
• Instead of a five-year period before the next Deed Review, suggesting the next Review be in three years. Including the option for an earlier Review for example if annual mail volumes fall below 120 million.

“The proposed changes have been developed to ensure that the minimum level of service would still meet New Zealanders’ mail needs, while providing flexibility for NZ Post to ensure mail deliveries continue into the future,” says Mr Hartley.

Following consultation and analysis of feedback, the Media and Communications Minister will make decisions on any updates to the Deed of Understanding.

Operational decisions about how any changes to the Deed are implemented will be made by NZ Post.

Consultation is open until 5pm, 10 December 2024. Read the full proposal and have your say on the MBIE website here:https://www.mbie.govt.nz/have-your-say/seeking-feedback-on-moving-towards-a-financially-sustainable-mail-service

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