Deed changes secure postal services for the future

23 October 2013

New Zealand Post has welcomed the changes to the Deed of Understanding announced by the Minister of Communications and Information Technology.

New Zealand Post Group CEO Brian Roche says the new Deed gives the company the flexibility it needs to be able to continue to provide New Zealanders with a postal service that meets their changing requirements and expectations.

“The flexibility means while New Zealand Post is committed to providing an across the week premium mail service we have room to move in the years ahead on the frequency of standard letter delivery.

“The change in delivery frequency at some point is inevitable given the ongoing and rapid decline in letter mail volumes.   While parcel volumes have increased by nearly 3 million since 2006, over the same period letter volumes are dropped by 322 million – or 30 percent.

“The changes also recognise that technology such as self-service kiosks will form a significant part of our postal service point network, and a move towards a franchise and hosted business model.

“The previous Deed is 14 years old and is out-of-date. It constricted New Zealand Post to a business model that would have had dire economic consequences and would have threatened the viability of the postal network.

“The new agreement preserves a postal network for New Zealanders and takes account of the differing needs between rural and urban delivery.

“The document is also a reflection of the quality submissions received from rural organisations including Federated Farmers and Rural Women New Zealand, the business sector, and community organisations such as Grey Power. I thank them for their valuable contributions,” said Mr Roche.

As prescribed in the Deed, there will be no changes to delivery frequency of standard letter mail before mid 2015. Mr Roche stressed New Zealand Post would work closely with large sending customers and also keep consumers informed well ahead of any operational changes.

Summary of key changes

1998 Deed of Understanding 2013 Deed of Understanding
Postal Delivery Service for standard letter mail
Six days a week delivery of standard letter mail to more than 95% of delivery points
  • From 1 July 2015 – not less than three days per week to 99.88% of delivery points
  • Five days per week deliveries to Rural Delivery Points, except for those Rural Delivery Points which had lower frequency as at 30 June 2013.

Note – while not outlined in the Deed, New Zealand Post will provide a six-day-per week premium mail service irrespective of any change to standard letter mail frequency.

New Zealand Post Service Network
A network of at least 880 postal outlets and post centres. A network of at least 880 service points at which consumers can purchase basic postal services.
Within the network of 880 postal outlets, not fewer than 240 postal outlets that provide postal services plus agency and/or other services. At least 240 service points where personal assistance is available to consumers for the purchase of additional postal services and make available such bill payment services as New Zealand Post provides from time to time at those service points.