Approval has been granted for NZ Post to decrease the number of days it provides mail services.
The Ministry of Business, Innovation and Employment announced that the government had approved amendments to the Postal Deed of Understanding between the Crown and NZ Post.
These changes are intended to enable NZ Post to run the mail service in a financially sustainable manner.
It has faced challenges due to a decrease in mail volumes in recent years. In 2023, reports indicated that NZ Post intended to reduce its workforce by 750 jobs over the following five years in response.
NZ Post may opt to operate above the minimum service levels, but under the new deed, mail must be delivered at least twice a week to urban addresses, PO boxes, and private bags, and at least three days a week to rural addresses.
The former minimum delivery requirement was three days for urban areas and five days for rural areas and PO boxes.
The deed also mandates a minimum of 500 service points, decreasing to at least 400 over four years, compared to the previous deed’s requirement of 880.
Another review is scheduled to begin in three years, with the option to occur sooner if annual mail volumes drop below 120 million items.
According to James Hartley, MBIE’s general manager of communications, infrastructure and trade, “NZ Post’s new minimum service obligations reflect how New Zealanders use the postal service today.”
“New Zealanders are sending fewer letters than ever before. The average delivery point now receives less than two letters per week, compared to 7.5 in 2013. Despite being used less, NZ Post has been required to maintain a network designed for much higher volumes.”
“Changes to the deed include reductions to the minimum number of mail delivery days and to the minimum number of postal outlets that NZ Post is required to maintain.”
“This follows a consultation held by MBIE last year, where we heard strongly from rural communities about their postal needs.”
“In recognition of this feedback, the government has included additional rural protections and maintained a greater number of minimum delivery days compared to urban areas in the deed to ensure that rural communities are not disproportionately affected.”
“This includes a safeguard against any rural retail store closures in the first year, unless circumstances are beyond NZ Post’s control.”
“Without these changes to NZ Post’s minimum service level obligations, the cost of maintaining current services would not be financially sustainable.”
The deed applies exclusively to mail delivery and does not include parcels or courier services.