NZ Post given the flexibility to respond to rapidly declining mail volumes  

NZ Post has proudly provided a mail service to New Zealanders for over 180 years, says NZ Post Chief Executive David Walsh.

 “Mail is an important service that we are committed to continuing to deliver. Mail is part of our DNA, and will continue to be as long as New Zealanders continue to send letters. The changes announced to the Deed provide us with flexibility to continue making changes to bring the mail service in line with today’s communication needs,” says Walsh.  

“Deed change doesn’t automatically result in operational change to NZ Post’s services. The Deed of Understanding sets out the minimum requirements that NZ Post needs to meet, however, we then make our operating decisions within those boundaries, based on a wide range of factors. Any operational changes will include appropriate engagement with our people and stakeholders in the first instance,” says Walsh.

“For now, there is nothing that Kiwis need to do differently and their mail delivery will continue as usual. NZ Post will proactively communicate future service changes to the public, to ensure that Kiwis know exactly what they can expect from their mail service.” 

“It is likely that the first area NZ Post looks at reviewing is our retail locations in urban areas.  The minimum requirements for retail hadn’t changed since 1989 and we need to ensure these are best serving customer needs and that we have the right number of stores in the right locations.” 

“The changes announced today will allow NZ Post to adapt as necessary to meet the changing needs of New Zealanders, give us the flexibility to make operational changes in the face of declining mail volumes, and ensure we meet the Government’s expectations to provide a commercially sustainable mail service,” says Walsh.

Further context on mail decline and the Deed of Understanding   

Mail volumes have been declining rapidly as New Zealanders increasingly choose to communicate online. New Zealand addresses currently receive less than 2 letters each per week compared to 7.5 in 2013 when the Deed of Understanding was last reviewed. NZ Post projects that this will fall to about 1 item, or less, per week by 2028. 

As part of the review of the Deed of Understanding, the Government developed proposals in discussion with NZ Post and sought feedback through public consultation. 

MBIE consulted with New Zealanders in late 2024 and changes were then made to the proposed Deed as a result of that feedback, and to meet New Zealanders’ preferences in a mail service. In particular, there will not be any NZ Post initiated rural store closures in the first year of the amended Deed and, if delivering mail at the new rural and non-rural minimum frequencies, NZ Post must space out the delivery days to not be entirely consecutive.

NZ Post’s parcel services are not within scope of the Deed of Understanding.