New Zealanders have grown accustomed to diminishing postal services and rising stamp prices. However, the latest proposal to eliminate home mail delivery altogether may be a step too far.
Once providing mail deliveries six days a week, NZ Post is now mandated to deliver mail only three days a week in urban areas and five days in rural areas. The traditional post office has nearly vanished, replaced by licensed outlets, typically found in superettes or bookshops.
Under the current Deed of Understanding with the government, NZ Post, a government-owned company operated by an independent board, must maintain 880 “points of presence,” including 240 manned outlets.
The Ministry of Business, Innovation and Employment (MBIE), overseeing a review of the Deed, noted that the 880 figure has remained unchanged since its establishment in 1989.
According to the latest proposal, the number of outlets could decrease to 500 initially, eventually dwindling down to just 400. Moreover, postal deliveries might be reduced to two days a week in urban areas and three days in rural regions.
MBIE argues that maintaining the current 880 outlets forces NZ Post to “overserve certain urban areas to meet this requirement.”
One of the most contentious aspects of the proposal is the potential introduction of “cluster” or “community” mailboxes. Initially for new addresses, existing delivery points could be transformed into communal points at a rate of up to 5 percent annually.
Union Calls for Extended Consultation
Earlier this year, NZ Post announced plans to consolidate parcel and mail delivery under one person, rather than separate posties and courier drivers. This move is part of broader changes expected to reduce staffing by 750 roles over a five-year period.
The Postal Workers Union is advocating for an extended consultation period and more detailed clarification on the proposed changes.
MBIE stated that the Deed was last reviewed in 2013, highlighting significant advancements in New Zealand’s digital connectivity since then. Originally slated for reevaluation in 2018, the review was postponed to 2024.
“The proposed changes aim to provide NZ Post with sufficient flexibility to achieve commercial sustainability while meeting the ongoing mail needs of New Zealanders,” the Ministry explained.
“Given the continuous decline in mail service usage and the years since the last Deed review, it is time to reassess whether modifications should be made to the deed to align with the diminishing use of the mail network by New Zealanders. Adjustments must also be considered to ensure the mail service can remain commercially viable.”
In 2002, NZ Post processed approximately one billion mail items. However, in the last fiscal year, this number plummeted to 187 million and is projected to decline further to 107 million by 2028.
