Summary

Mail is important to New Zealanders but the use of the mail service is steadily declining

New Zealand Post (NZ Post) has a long history in New Zealand. Since the 19th century, it has connected Kiwis both to the world and to each other. Today, NZ Post employs over 4,500 people, has over 880 postal outlets, and continues to play a valuable role in the way we communicate.

Addressed mail (such as letters and postcards) continues to be important to New Zealand society, but the amount of mail New Zealanders are sending and receiving is decreasing every year. In 2002, approximately a billion mail items went through NZ Post’s service. Last financial year this dropped to 187 million and is forecast to decrease to 107 million items by 2028.

Changes are proposed to obligations on NZ Post following a 2024 Review

NZ Post’s minimum mail service obligations are outlined in the Postal Deed of Understanding (the Deed). The Deed is an agreement between the Government and NZ Post which covers, among other things, the minimum number of postal delivery days, delivery points and retail stores. The Deed was last reviewed in 2013. It was scheduled for review in 2018, but subsequently extended to 2024.

Given ongoing decline in the use of the mail service and the years since the last Deed Review, it is time to consider whether changes should be made to the Deed to reflect New Zealanders’ declining use of the mail network. Changes also need to be considered to allow the mail service to continue in a commercially sustainable way.

As part of this Review the Ministry of Business, Innovation & Employment (MBIE), on behalf of the Minister for Media and Communications, has developed proposals in discussion with NZ Post for changes to some of the obligations in the Deed. Key proposals for change include reductions in the minimum number of urban and rural delivery days and the number of mandated postal retail outlets.

If changes to the Deed are progressed following this consultation process, this does not mean that changes to NZ Post services would necessarily, or immediately, follow. The Deed outlines the minimum obligations for NZ Post. However, NZ Post will still make operational decisions regarding its service offering, which may include continuing to offer current service levels where this remains commercially viable.

We are seeking your feedback on the proposals in this document

The purpose of this discussion document is to seek your feedback on your use of the mail service and on the proposed Deed changes as part of the 2024 Review. The document gives a brief overview of NZ Post’s mail service, statistics on mail usage and the proposals we are seeking feedback on. It also sets out next steps following the consultation period.

Before providing advice to the Government about progressing changes to the Deed, MBIE would like to hear from you on how the changes may impact you, your business and/or community. Your feedback will play a crucial part in the Government’s decision-making process. Thank you for taking the time to read this discussion document and to provide your feedback.

Last updated: 29 October 2024