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Elevate Magazine
October 30, 2024

NZ Post Service Adjustments Proposed as Mail Volumes Drop

nz post service adjustments proposed as mail volumes drop

New Zealand is experiencing a sharp decline in mail usage, with the Ministry of Business, Innovation, and Employment (MBIE) reporting a drop of approximately 813 million mail items compared to the past two decades. This downward trend is expected to continue, with projections indicating that the number of mail items sent will decrease to around 100 million by 2028.

As the volume of mail continues to decrease, proposals are being made to modify NZ Post’s service obligations.

Proposed options were put forward to address the ongoing decline in mail services, all while ensuring that New Zealanders could continue to send and receive mail.

The options included lowering the minimum delivery frequency from three days per week to two days per week in urban areas and from five days per week to three days per week in rural areas. 

Additionally, the proposal suggests reducing the minimum number of postal outlets from 880 to 500.

It also offered the possibility of an earlier review, such as if annual mail volumes dropped below 120 million.

James Hartley, the general manager for communications infrastructure and trade at MBIE, stated that modifications to NZ Post’s operational framework are necessary to maintain its ongoing commercial viability.

New Zealand Post and the Government have a formal agreement known as the Deed of Understanding, which specifies certain essential obligations that must be fulfilled. These obligations include the frequency of mail delivery and the number of postal outlets available.

Hartley noted that unlike many overseas postal services, NZ Post does not receive government funding. Thus, it is crucial to set minimum service obligations that allow the organisation to operate sustainably while still meeting community needs.

Following a period of consultation and analysis, Media and Communications Minister Paul Goldsmith is set to make decisions regarding updates to the Deed of Understanding. The operational decisions regarding how these changes will be implemented will lie with NZ Post. 

The consultation period is open until December 10, 2024, 5 p.m.