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


Proposed changes to Rural Post and the NZ Post Deed

29 January 2013

Proposed changes to Rural Post and the NZ Post Deed

Federated Farmers is to consult its membership on proposed changes that could radically reshape the delivery of physical mail to over half a million New Zealanders in rural areas.

“NZ Post deserves praise for the way it has worked with Federated Farmers, Rural Woman NZ and the other rural stakeholders,” says Bruce Wills, Federated Farmers President.

“This will largely not come as a shock because we are living through a fundamental shift in technology. The decline in physical mail is offset by the rise of electronic mail.

“Commercially, NZ Post’s business model must either evolve or face extinction but I doubt many people can seriously argue the status quo is tenable.

“The proposed changes will most be felt by communities who have already lost physical services and that have few technological options available.

“This is something NZ Post recognises in the discussion document noting rural, “are also areas where access to the internet at speeds sufficient for digital communication options to displace postal services is most likely to be limited”.

“Even if we take the most optimistic assumptions about rural broadband, it still leaves some 86,000 people off-line; more than the population of Palmerston North.

“Many farmers rely on Rural Post contractors for more than the mail including newspapers, courier items and even groceries. There is also an unquantifiable socialisation element too. Yet we also understand Rural Post contracts on their own are basically uneconomic; clearly any reduction in delivery days will affect this even more.

“In looking at this, one sector that could lose out heavily is the traditional daily newspaper; a sector already under siege.

“Farmers tend to be heavy subscribers and a key advertising demographic. NZ Post’s move may drive innovation in terms of delivery but we will have to wait and see how that industry responds through the consultation.

“What we do know is that change is coming and what service level will be acceptable will be member driven. That said, as long as a Universal Service Obligation exists, Federated Farmers will strongly resist any separate ‘rural delivery fee’.

“We have been there before and it simply did not work.

“Laying the status quo to one side, the choices are really between a stop-gap that will buy only a limited amount of time, right-sizing services in order to be economic or cutting NZ Post free and allowing market forces to work things out,” Mr Wills concluded.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news