Sharechat Logo

NZ Post to move to 3-day deliveries in urban areas from 2015 as volumes slide

Wednesday 23rd October 2013

Text too small?

New Zealand Post, the state-owned postal service, will cut urban deliveries to three days a week from six starting in 2015 under an agreement with the government to sustain the business in the face of declining volumes.

Under a change to NZ Post's deed of understanding with the government the company would cut urban deliveries to a minimum three days a week while maintaining rural deliveries at five days starting on June 30, 2015.

NZ Post had sought to cut rural deliveries by the same amount but Communications and Information Technology Minister Amy Adams said she was "concerned about the sustainability of rural delivery services and rural contractors in general through fewer deliver days." The company's chief executive Brian Roche said the existing deed is 14 years old and out of date.

"The change in delivery frequency at some point is inevitable given the ongoing and rapid decline in letter mail volumes," Roche said. "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."

Keeping NZ Post's business model unchanged "would have had dire economic consequences and would have threatened the viability of the postal network."

The company reported a 29 percent drop in profit last year as its traditional letters business weakened and it wrote down the value of some postal assets.

Adams said if changes weren't made, the government could end up subsidising NZ Post by more than $30 million a year.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Unions gearing up to oppose 'market tests' on Fair Pay Agreements
Mandatory farm plans scorned as 'tick box' exercises
Kiwi dollar firms on weak US retail data, capped by rate-cut expectations
17th October 2019 Morning Report
SkyCity hoses down union claims over potential job losses
OPINION: Fair Payment Agreements and 'swallowing vomit' - the lot of the CTU
MARKET CLOSE: NZ shares gain; Restaurant Brands climbs on upbeat outlook
NZ dollar stalls after Bascand's rate cut comments
Bascand says RBNZ will consider changing bank capital proposals
Affordable electricity key to decarbonisation - Genesis

IRG See IRG research reports