Postal Deed of Understanding

Have your say

The Ministry of Business, Innovation and Employment is currently consulting on proposed changes to the postal Deed of Understanding. You can read about the proposed changes here: Seeking feedback on moving towards a financially sustainable mail service(external link).

About the Deed

The postal Deed of Understanding was established in 1989 and is an agreement between New Zealand Post and the government.

As the national mail carrier, New Zealand Post must meet certain minimum obligations relating to the sale and delivery of postal products. These obligations are set out in an agreement between New Zealand Post and the government in the Deed.

The Deed has been renewed and amended to take into account changes in objectives and market conditions. The present version was agreed in 1998, and then amended in 2010 and 2013.

Under the 2013 iteration, the terms of the Deed were scheduled to be reviewed by 1 November 2018. The timeframe has been extended and a review is currently underway.

The government uses disclosure regulations to monitor compliance with the Deed of Understanding and also the Postal Service Act.

New Zealand Post's main obligations under the current Deed are set out below.

Minimum delivery frequency

Not less than 3 day per week deliveries to 99.88% of delivery points.

1 day per week deliveries to the remainder of delivery points.

Notwithstanding the above, New Zealand Post shall continue to provide:

• 5 day per week delivery to all delivery points which received the rural delivery service as at 30 June 2013, except for those points which had a lower delivery frequency
• 2 or 3 day per week deliveries to each delivery point that received 2 or 3 day per week deliveries as at 30 June 2013
• 5 day per week deliveries to PO Box and Private Bags, except where they received less than 5 day per week deliveries as at 30 June 2013.

Minimum number of delivery points in total

At least 1,910,010.

Commitment to add new delivery points

NZ Post must add new delivery points upon request unless operationally impracticable, or if to do so would jeopardise the commercial sustainability of NZ Post’s Obligations.

Proportion of delivery points that can be communal

No more than 3.0% of total delivery points, subject to the condition that conversion of existing individual delivery points to communal delivery points may only occur with the written consent of the user.

Size of retail network

At least 880 points of presence, comprised of physical outlets and self-service kiosks.

Postal outlets with additional postal services

At least 240 manned points of presence where customers:

• can receive personal assistance from an NZ Post employee or agent
• can access a wider range of products and services over and above basic postal services.

Access to postal network

Obligation to provide competitors with access to the NZ Post postal network.

Charging

NZ Post shall not re-introduce the rural delivery fee.