NZ Post Receives Approval to Cut Mail Delivery Days

Changes approved by the New Zealand government will allow NZ Post to reduce the number of days it offers mail services. The Ministry of Business, Innovation and Employment (MBIE) announced on March 12, 2024, that adjustments to the Postal Deed of Understanding between the Crown and NZ Post have been sanctioned. These changes aim to enable NZ Post to operate in a commercially sustainable manner amid declining mail volumes.

In recent years, NZ Post has experienced a significant drop in mail traffic. According to reports, the organization plans to cut approximately 750 jobs over the next five years as part of its response to this decline. The new regulations stipulate that NZ Post must deliver mail at least two days a week to urban addresses, PO boxes, and private bags, while rural areas will receive mail a minimum of three days a week. Previously, urban areas were guaranteed a minimum of three delivery days, and rural and PO boxes had five.

Details of the New Postal Service Obligations

The revised Postal Deed requires NZ Post to maintain a minimum of 500 service points, which will decrease to 400 service points over the next four years. The former requirement mandated that NZ Post maintain 880 service points. The delivery days are required to be spread throughout the week, ensuring consistent access for customers.

A review of these service obligations is planned for three years from now, but it could occur sooner if mail volumes fall below 120 million items in a year.

James Hartley, MBIE’s General Manager of Communications, Infrastructure and Trade, stated, “NZ Post’s new minimum service obligations reflect how New Zealanders use the postal service today.” He highlighted that the average delivery point now receives less than two letters per week, a steep decline from 7.5 letters per week in 2013. Hartley emphasized that despite reduced usage, NZ Post has been expected to maintain a network structured for much higher volumes.

Community Feedback and Future Implications

The changes follow a consultation process held by MBIE last year, which garnered input from rural communities regarding their postal needs. In light of this feedback, the government has implemented additional protections for rural areas. The new deed includes a safeguard against any rural retail store closures in the first year unless circumstances are beyond NZ Post’s control.

Hartley noted, “Without these changes to NZ Post’s minimum service level obligations, the cost of maintaining current services would not be financially sustainable.”

It is important to note that the updated Postal Deed pertains solely to mail delivery and does not cover parcel or courier services. As the landscape of communication continues to evolve, these adjustments mark a significant shift in how postal services will be provided in New Zealand moving forward.