NZ Post Implements Changes to Mail Delivery Service Days

The New Zealand government has approved significant changes to the mail delivery service provided by NZ Post, potentially reducing the number of delivery days. The Ministry of Business, Innovation and Employment (MBIE) confirmed this decision on March 12, 2024, as part of a revised Postal Deed of Understanding aimed at ensuring the financial sustainability of the postal service amid declining mail volumes.

These adjustments come at a time when NZ Post has reported a drastic decrease in mail usage. According to data from MBIE, the average delivery point now receives less than two letters per week, a sharp decline from an average of 7.5 letters in 2013. In response to these trends, NZ Post plans to cut approximately 750 jobs over the next five years.

Under the new regulations, NZ Post is required to maintain mail delivery at a minimum of two days a week for urban addresses, PO boxes, and private bags. For rural addresses, deliveries must occur at least three days a week. This marks a reduction from the previous requirement of three days for urban areas and five days for rural and PO boxes. The changes also stipulate that delivery days must be spread throughout the week to ensure consistent access.

In addition to altering delivery frequencies, the new deed mandates a minimum of 500 service points, which will decrease to 400 over the next four years. The previous requirement was set at 880 service points. These adjustments reflect a broader shift in how New Zealanders engage with postal services, with fewer letters being sent than in previous years.

James Hartley, MBIE’s General Manager of Communications, Infrastructure and Trade, emphasized the necessity of these changes. “NZ Post’s new minimum service obligations reflect how New Zealanders use the postal service today,” he stated. Hartley noted that the government’s decision follows extensive consultations with rural communities, which voiced their concerns regarding postal accessibility.

To mitigate the impact on rural areas, the revised deed includes specific protections. These measures aim to prevent disproportionate effects on rural communities compared to urban counterparts. For instance, there will be safeguards against the closure of rural retail stores for the first year, unless circumstances are beyond NZ Post’s control.

The government has recognized that without these adjustments, maintaining the current postal service levels would not be financially viable for NZ Post. It is important to note that the new deed only pertains to mail delivery; parcel and courier services are not affected by these changes.

A further review of the situation will take place in three years, with provisions for an earlier reassessment if mail volumes drop below 120 million items per year. This strategic approach aims to align NZ Post’s operations with the evolving needs of the New Zealand population while ensuring the sustainability of postal services across the country.