NZ Post changes

October 24th, 2013 at 12:00 pm by David Farrar

Hamish Rutherford at Stuff reports:

The head of New Zealand Post admits hundreds of postie jobs will be cut after striking a new agreement which could see urban delivery days halved.

Today the state owned enterprise released its new Deed of Understanding, an agreement with the Government which will dictate the minimum standards from mid-2015.

Changes will see urban delivery fall to as little as three days a week, with rural services largely protected, falling only to at least five days a week.

Post is a dying business. I clear my PO Box once a week at best. Anything that is timely gets sent by e-mail or courier.

I understand the more frequent delivery minimum for rural areas is because they do not have good Internet access in many places, so are more reliant on the postal service.

Chief executive Brian Roche said the changes were required by a fundamental decline in the amount of post in New Zealand.

While parcel volumes have climbed since 2006, letter volumes have dropped by around 30 per cent over the same period.

Parcel volumes may be due to Trade Me!

We should have sold years ago. It may not be worth very much in 10 years time. Same goes for TVNZ.

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20 Responses to “NZ Post changes”

  1. burt (7,992 comments) says:

    I loved the union tosser on the news… Cutting the number of deliveries might cause an escalation in the decline – we can’t have that can we. We must use tax payers money to protect jobs via intervention….

    If the wooden wagon wheel makers union had their way there would still be hundreds of wooden wheel makers being propped up by tax payers money – millions would be spent protecting jobs that should have fallen away decades ago.

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  2. dime (9,655 comments) says:

    Dam right we should have unloaded it.

    Like telecom being smart enough to get huge money for the freakin yellow pages!

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  3. Paulus (2,556 comments) says:

    The Post Office would do better in terms of profitability if it sold off its deadwood, KiwiBank.

    This, since it was set up, has continually drained many hundreds of million dollars annually to prop up Kiwibank’s solvency margin. These are not loans but capital injection, by Taxpayers.

    It has not been a success that Labour painted it would be – I note the Chairman of Post Office Michael Cullen makes no mention of this.

    See how many Shareholders you would get if 49% were sold off – without Post Office subsidies.

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  4. 3-coil (1,204 comments) says:

    The standard of service has been steadily declining too, no wonder NZPost is on its knees.

    We changed all of our business invoicing and payments to on-line after repeated cockups by posties and mail-sorters – cheques delivered to our PO Box number, but in the wrong city, were apparently our fault! (and not so much as an apology could be elicited from them). At home we spent $300 modifying our mail slot to their requirements, yet they still leave letters half hanging out (while the kids who deliver the junk mail seem to manage it okay though).

    When they blame the customers for mistakes by their own drongo staff…more and more ex-customers will vote with their feet.

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  5. freethinker (685 comments) says:

    If we go to 3 deliveries a week there is a knock on effect -Councils/Po Lice IRD & Legal notices etc etc that are deemed received after say 2-3 days of posting will need to be changed unless the intention is to allow delivery to occur after the cut off or so shorten the time period to respond as to disadvantage the recipient.

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  6. wreck1080 (3,798 comments) says:

    Royal mail was floated in the UK and the share price has increased 40%.

    Either shows you are wrong, or, the english are barmy . I suspect the latter.

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  7. Monique Angel (262 comments) says:

    So grateful for the post service here. Deliveries and pick up of my mail from my letterbox every day. Jose my postman knows us by name and the volume if mail doesn’t seem to be declining here anytime soon thanks to Amazon etc.
    I think it’s shortsighted cost cutting. Grow the volume transported.

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  8. peterwn (3,207 comments) says:

    Other reasons for daily rural deliveries would be lack of courier services (courier and fastpost items would still be delivered in a timely manner by the contractor) and that they also AFAIK handle newspapers and other non-postal items.

    freethinker- in most cases there is plenty of time to respond – one + one month for infringement notices for example and IRD allow reasonable time. Court issued stuff could be a problem as there is sometimes a very short ‘window’ to respond, but judges do have discretion to accept late responses. Possibly DC and HC rules should be reviewed to alloe longer response times.

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  9. Stephen Stratford (45 comments) says:

    There’s a good explanation of what rural delivery does – and means for country dwellers – at http://www.ruralwomen.org.nz/news-and-inspiration/rural-delivery. It goes well beyond delivering the mail.

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  10. OTGO (523 comments) says:

    I’ve noticed that the posties are not as good looking as they used to be. And they no longer blow a whistle to let you know that your mail has arrived. It’s all down hill I’m afraid.

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  11. Dazzaman (1,130 comments) says:

    freethinker- in most cases there is plenty of time to respond – one + one month for infringement notices for example and IRD allow reasonable time.

    Not so for a lot of things. Utilities bills & rates payment response times have shortened drastically where I live….down to just 7 days for some when you factor into account the so called “discount” (read penalty) deadlines. Everyone wants their dollar….NOW!!

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  12. liarbors a joke (1,069 comments) says:

    Electronic mails the way to go…everyone has/or should have a hotmail address…all of my incoming arrives this way , electric bill , fuel accounts, bank statements , IRD demands..its the way of the future , posties are quaint but are now unnecessary .

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  13. Andronicus (219 comments) says:

    I don’t know why rightwingers have this obsession with selling off everything. Makes no sense.

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  14. igm (1,413 comments) says:

    How much is Kiwibank taking out of NZ Post’s topline? Having had the misfortune to briefly deal with this public service disaster, it would come as no surprise to find they are leeching off the parent component of this enterprise. I have been in business for many years, dealing with all kinds of financial institutions, but till I had small dealings with Kiwibank, I had never come across such a bunch of unprofessional incompetent fools. They are devoid of product knowledge, produce cosmetic smiles, and when one has to wait 15 minutes because the person to be seen is having coffee, it becomes too hard to tolerate. Why does everything public servants touch become a failure?

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  15. seanmaitland (472 comments) says:

    My son looks exactly like my postman, a nice fella from East Africa.

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  16. burt (7,992 comments) says:

    Andronicus

    I don’t know why rightwingers have this obsession with selling off everything. Makes no sense.

    And the leftwingers want to nationalise everything. Makes no sense.

    But we have a predominately two party system where each has to do the opposite of the other and we call that governance.

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  17. Jack5 (4,818 comments) says:

    DPF is right on timing of sales when he says: “We should have sold NZ Post years ago. It may not be worth very much in 10 years time. Same goes for TVNZ.”

    But Radio NZ should be added to that list.

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  18. SPC (5,472 comments) says:

    1. Kiwi Bank is the part of the business now carrying the rest.

    2. There will be a continuing 6 day service in urban areas – probably by motor bike.

    One presumes there will be a delineation between 3 day delivery of mail to every mail box and mail delivered 6 days a week to only some mail boxes.

    Fast Post is mail transported faster around the country than standard mail and costs more.
    3 day delivery (probably M W and F) without any charge but for the sender by the stamp.

    Premium 6 day delivery will cost more too and presumably the sender will pay the cost of this, thus 3 rates, one for 6 day delivery FP, FP with 3 day delivery and standard.

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  19. Bikersteve (2 comments) says:

    My observation of NZ Post is that it has been fixated by Kiwi Bank so the rest of the business is suffering from lack of positive management attention.

    As to comments on getting bills electronically, really why would you! Admittedly they are more convenient, reliable and so on. But the money laundering regime does not like them. So to create and operate a bank account and perform other financial transactions it is better to have at least some real paper bills, rather than one any one could print. As an ex printer I could still print an electronic bill as if it was a ‘printed bill”, but most people could not. The current rules on evidence of address and identity for bank accounts and utilities should encourage people to have mail rather than having electronic bills.

    As an institution NZ Post removed mangers ‘who could’ and replaced them with mangers “who can’t”.

    I could never understand an organisation that undermined its ‘premium’ product. In Auckland the cut off for fast post used to be 6pm for delivery the next day, but for ordinary post being delivered locally the cut off for next day delivery was 10pm.

    However, Fast Post while claimed at next day delivery is not achieving its target. My partner, a number of times, has sent details of ‘urgent’ appointments which have not been received or received 3 days or more later.

    While is it fashionable to blame people for not attending hospital appointments, how many have not received them! I was on a strict appointment regime, monthly, two monthly, three monthly, quarterly, and 6 monthly, so I knew when I should receive an appointment letter. If I did not receive a letter I checked and found one had been sent but I had not received it.

    NZ Post needs sorting out.

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  20. gazzmaniac (2,319 comments) says:

    Australia post has record profits. They also use motorcycles to deliver the mail, which obviously cost more than push bikes.
    It doesn’t have a bank propping it up either.
    I wonder what the difference is between Australia Post and New Zealand Post? I wonder if it’s got something to do with the management.

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