Mailboxes at Home may Disappear as NZ Post Reevaluates its Responsibilities

New Zealanders have witnessed postal services shrinking as stamp prices increase. The latest proposal, to eliminate home mail delivery entirely, may be seen as a drastic measure.

NZ Post used to deliver mail six days a week but is now mandated to deliver only three days a week in urban areas and five days in rural areas. The traditional post office has largely disappeared, making way for licensed outlets typically found in superettes or bookshops.

As per their agreement with the government, NZ Post, a government-owned company with an independent board, must maintain 880 “points of presence,” of which 240 are manned outlets.

The Ministry of Business, Innovation, and Employment (MBIE), overseeing a review of the agreement, mentioned that the 880 figure has remained unchanged since it was established in 1989.

Under the current proposal, the number could be reduced to 500 initially, eventually decreasing to just 400, and postal deliveries might be limited to two days a week in urban areas and three days in rural locations.

MBIE argues that by trying to maintain the 880 figure, NZ Post is compelled to “overserve certain urban areas to meet this requirement.”

The most controversial aspect of the proposal is allowing NZ Post to deliver to “cluster” or “community” boxes, initially for new addresses, with existing delivery points transitioning into communal points at a rate of up to 5 percent per year.

Currently, no more than 3 percent of delivery points can be counter services or community mailboxes.

Union Wants More Consultation

Earlier this year, NZ Post announced its intention to have parcels and mail delivered by the same individual, rather than through separate posties and courier drivers, as part of broader changes that would result in a reduction of 750 roles over five years.

The Postal Workers Union is pushing for an extended consultation period and clarification of the specifics.

MBIE noted that the agreement was last reviewed in 2013, and New Zealand’s digital connectivity has significantly improved since then. A review was initially planned for 2018 but was postponed until 2024.

“The proposed changes… are aimed at giving NZ Post the flexibility needed to achieve commercial sustainability while still meeting the ongoing mail needs of New Zealanders,” stated the Ministry.

“Given the continuous decline in mail service usage and the time elapsed since the last review of the agreement, it is time to assess whether adjustments should be made to reflect the decreasing use of the mail network by New Zealanders. Changes should also be contemplated to enable the mail service to continue in a commercially sustainable manner.”

In 2002, approximately a billion mail items passed through NZ Post. By the last financial year, this number had dropped to 187 million and is projected to decrease to 107 million by 2028.