Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


New Zealand Post seeks flexibility for the future

29 January 2013


29 January 2013

New Zealand Post seeks flexibility for the future

New Zealand Post has welcomed the release of its proposal and discussion document regarding postal services for public submissions.

The document has been released by Communications and Information Technology Minister Amy Adams and is available on the Ministry of Business, Innovation and Employment (MBIE) website www.mbie.govt.nz (click on the „Have Your Say link).

The document contains New Zealand Posts proposal to update the Deed of Understanding (“the Deed”) it has with the Government regarding standard letter delivery and postal outlet services.

The current Deed was last significantly updated in 1998, some 14 years ago, at a time which pre-dated the digital revolution. That revolution has resulted in the rapid expansion of internet-based products and services which have fundamentally changed the way people communicate, do business and shop.

The last decade has seen an unprecedented drop in mail volumes. There was 24 percent less mail (265 million fewer items) posted in 2012 than a decade before in 2002. Within five years mail volumes are forecast to decline further, to just over 600 million items – in other words, just 50 percent of the mail volume in 2002.

New Zealand Post Group CEO Brian Roche says the current Deed no longer reflects the current use of New Zealand Posts services, or the impact technology has made as a substitute. Mr Roche says the Deed is in urgent need of a revamp to ensure New Zealanders continue to have access to a sustainable, viable, postal service network that meets their changing requirements.

“The time is now to make the necessary decisions for the future. Every postal system around the world is facing similar challenges and they are beginning to act. We cannot stand still and simply hope the problems will go away.

“We are seeking an agreement that gives us the flexibility and certainty to be able to plan for that future. Without that flexibility, standard letter mail and postal outlet services will incur significant losses.

“Not gaining flexibility will leave us with some challenging and unsustainable options – asking for taxpayer funded subsidies to prop up the letters business; operating the postal business at a loss which will degrade the business over time; or cross-subsidising from other parts of New Zealand Post, denying the business the opportunity to grow and invest.

“The document released today clearly outlines the rationale for change and what we need to do to ensure our letters business has a future. We have exhausted the short term fixes the 1998 Deed allows,” Mr Roche said.

He said New Zealand Post has engaged with key stakeholders including business, the rural sector and groups representing older New Zealanders about the future of postal services, and will continue to do so.

“The public submission process over the next six weeks will further inform the decision on the final nature of the agreement with the Government.

“We believe the agreement should focus on ensuring customers can access services, not on requiring services to be provided in a particular way as the current 1998 Deed prescribes,” he said.

Mr Roche emphasised the proposed new Deed was not a business plan, but rather the framework which would provide the parameters for those plans to be created, and implemented over time.

“We are not about to reduce letter mail delivery frequency immediately. It is, however, inevitable at some point in the future that there the need to reduce standard letter mail delivery frequency.

“Getting flexibility now will ensure we can plan clearly, and inform consumers, the business sector and other key stakeholders well in advance of any changes.

“We understand that these proposed changes will, over time, impact on our customers, users and employees. However the influence of technology will continue and may well accelerate. It will not, in our view, go away, and nor will the challenges we face. Hence, our proposal is to manage these challenges proactively, so we can maintain a viable and dependable network,” Brian Roche said.

The New Zealand Post discussion document and details of how to make submissions can be viewed at the MBIE website www.mbie.govt.nz.

END

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news