Changes have been signed off that allow NZ Post to reduce the number of days it offers a mail service.
The Ministry of Business, Innovation and Employment said on Tuesday the government had approved changes to the Postal Deed of Understanding between the Crown and NZ Post.
These are designed to allow NZ Post to operate the mail service in a commercially sustainable way.
It has come under pressure as mail volumes have declined in recent years.
In 2023, it was reported that NZ Post planned to cut 750 jobs over the next five years in response.
NZ Post can choose to operate at higher-than-minimum levels, but the new deed requires that mail be delivered two days a week to urban addresses, PO boxes and private bags and a minimum three days a week to rural addresses.
The previous minimum was three days for urban areas and five for rural and PO boxes.
The delivery days need to be spread throughout the week.
The deed also requires a minimum of 500 service points, reducing to a minimum 400 over four years. The previous deed required 880.
Another review will start in three years but there is provision for it to happen earlier if mail volumes fall below 120 million items in a year.
“NZ Post’s new minimum service obligations reflect how New Zealanders use the postal service today,” said James Hartley, MBIE’s general manager of communications, infrastructure and trade.
“New Zealanders are sending fewer letters than ever before. The average delivery point now receives less than two letters per week, compared to 7.5 in 2013. Despite being used less, NZ Post has been required to maintain a network designed for much higher volumes.
“Changes to the deed include reductions to the minimum number of mail delivery days and to the minimum number of postal outlets that NZ Post is required to maintain.
“This follows a consultation held by MBIE last year, where we heard strongly from rural communities about their postal needs.
“In recognition of this feedback, the government has included additional rural protections and maintained a greater number of minimum delivery days compared to urban areas in the deed to ensure that rural communities are not disproportionately affected. This includes a safeguard against any rural retail store closures in the first year, unless circumstances are beyond NZ Post’s control.
“Without these changes to NZ Post’s minimum service level obligations, the cost of maintaining current services would not be financially sustainable.”
The deed only covers mail delivery, not parcels and couriers.
