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New Zealand Post is now allowed to cut back the number of delivery days and post offices even further after a change to the deed it has with the Government. 

The change was announced by the Ministry of Business, Employment and Innovation (MBIE) this morning. NZ Post will only be required to deliver mail two days a week, down from three, and will be allowed to close 380 “service points”. 

James Hartley, an MBIE general manager, said the new minimum service obligations in the deed “reflect how New Zealanders use the postal service today”. 

He said people were using the postal service less, but NZ Post still had to maintain its network. 

“New Zealanders are sending fewer letters than ever before. The average delivery point now receives less than two letters per week, compared to 7.5 in 2013. Despite being used less, NZ Post has been required to maintain a network designed for much higher volumes. 

“Without these changes to NZ Post’s minimum service level obligations, the cost of maintaining current services would not be financially sustainable,” Hartley said. 

NZ Post supported the changes. 

“Mail is part of our DNA and will continue to be as long as New Zealanders continue to send letters,” NZ Post chief executive David Walsh said. 

He stressed the deed change did not mean an automatic change to NZ Post’s delivery schedule. 

“The Deed of Understanding sets out the minimum requirements that NZ Post needs to meet. We then make our operating decisions within those boundaries,” Walsh said. 

“Any operational changes will include appropriate engagement with our people and stakeholders in the first instance,” he said. 

The deed change gave NZ Post flexibility and enabled it to meet the Government’s expectations to provide a commercially sustainable mail service, Hartley said. 

NZ Post will likely look at cutting the number of post offices and post shops in urban areas. Hartley said the minimum requirements for retail outlets had not changed since 1989. 

Further to the declining number of letters sent, NZ Post has predicted New Zealand addresses will only receive an average of 1 item or less a week by 2028. 

Parcel services are not covered by the deed and are not affected by the changes. 

Raphael Franks is an Auckland-based reporter who covers business, breaking news and local stories from Tāmaki Makaurau. He joined the Herald as a Te Rito cadet in 2022.