PrintNZ has lobbied government for the last 18 months about the continuing postage increases that have seen the price of posting a letter escalate by 75 per cent over the last five years, threatening the viability of print communications across New Zealand. This included a widespread campaign where PrintNZ engaged with Ministers, government officials and multiple media outlets highlighting the impact of these increases.
The government recently provided an opportunity for consultation on proposed changes to the way NZ Post operates, however, all the proposed changes focus on frequency and breadth of delivery. Despite this, PrintNZ again focused its submission on trying to have some measures of control put in place regarding pricing as any changes to the frequency and location of delivery services are irrelevant if the service is unaffordable.
Its recommendations include:
- Price increase caps tied to inflation or cost indices.
- Requirements for industry consultation before significant rate changes.
- Different rate structure for essential business communications.
- Volume based incentives that make services accessible to smaller operators.
As an industry, print is the largest generator of posted material so PrintNZ has also asked for the opportunity to coordinate a postal industry group to provide an ongoing platform for consultation.
Ruth Cobb, chief executive officer of PrintNZ, says, “New Zealand Post is a publicly owned organisation with a mandate that extends beyond the scope of a typical commercial enterprise, and as an entity owned by the People of New Zealand, it carries an obligation to deliver services that provide a public benefit as well as purely commercial considerations.
“The letterbox remains the only way to communicate with every household in New Zealand and we need to make sure that remains affordable and accessible.’
VMA responds NZ Post amendments
Meanwhile, the Visual Media Association (VMA) has also submitted its response to the government’s consultation into the proposed amendments to NZ Post’s operations.
The Ministry of Business, Industry and Employment has proposed numerous amending measures to NZ Post’s operations including:
- A reduction in delivery frequency. The proposal is to reduce the minimum delivery frequency in urban areas from three days to two days per week and in rural areas from five days to three days per week.
- A change in delivery points. These new delivery points could include communal delivery points such as community mailboxes or collection points. This means that some New Zealanders, particularly in newly developed areas, might not have individual letterbox delivery to their property.
- A reduction in retail presence. The proposal is to reduce the minimum number of NZ Post points of presence from 880 to 500 initially, with the possibility of decreasing to 400 over time.
VMA has expressed a range of various concerns with the proposed operational changes. They are:
Economic impacts. From an industry specific perspective, the New Zealand industry comprises over 1,000 businesses and employs over 20,000 New Zealanders across skilled, semi-skilled and unskilled roles nationally. The proposed changes to New Zealand Post’s operations, along with the ongoing and escalating costs of postal services, would have direct and far-reaching viability related consequences for these businesses and their employees.
Social impacts. The VMA has called on government to remember its commitment to social equity and recognise the vital role that the postal service provides for New Zealand citizens. Amendments to current NZ Post operations will negatively impact vulnerable groups who rely on mail services more heavily. This includes older adults, rural communities, and individuals with limited digital access, those with mobility impairments, as well as Māori and Pacific communities. These changes threaten to further exacerbate existing inequalities and restrict these groups’ ability to participate fully in society.
The VMA has demanded that any amendments to New Zealand Post’s operations must be assessed through the lens of equity principles, to ensure that fiscal responsibility is balanced with social responsibility.
The VMA is concerned that viable alternative options to those proposals contained in the Discussion document exist but are not being sought or to be considered as part of the overall review process.
The VMA has expressed its concerns that the government’s approach to consulting with stakeholders on this issue is lacking and superficial. The VMA holds the view that the consultation process should have been extended, and the scope of the consultation should have been expanded, and that there should have been a formalised approach to stakeholder engagement.
Additionally, the VMA has expressed its support for the views expressed by PrintNZ and other community organisations that would be affected from the proposed amendments, including Rural Women New Zealand and the Postal Workers Union of Aotearoa.
Kellie Northwood, chief executive VMA, says, “It is crucial that any changes to NZ Post’s operations are carefully evaluated to balance operational efficiencies with the needs of businesses and their employees. Collaborative engagement with stakeholders can help identify solutions that sustain both economic growth and employment opportunities while preserving the accessibility and reliability of postal services.”
“Considering the interconnected nature of the industry, New Zealand Post, and government, we believe the industry is in a unique position to collaborate with New Zealand Post to offer valuable inputs and considerations that can lead to operational efficiencies.”
“From a consultation perspective there has been a consistent reluctance to engage meaningfully with stakeholders across the publishing and distribution channels. For the limited meetings that have occurred, the dialogue has been minimal and has not led to meaningful change or the development of mutually beneficial commercial outcomes. Given the importance of this matter, we hold the view that the overall process should be expanded, with an increased timeframe, and with a greater opportunity for genuine consideration of stakeholder inputs should occur.”
“Although the government has stated the proposed changes are under consultation, and that any final decisions will depend upon stakeholder feedback, given the limited consultation process and in the absence of any ability to canvas viable alternatives, it feels like the script has already been written.”
