New Zealand Post will increase mail prices to maintain the postal network in view of the risingcosts, increased delivery points and declining mail volumes.
“In the past five years, mail volumes have declined by over 100 million to 887 million items –that’s a drop of over 10%. In the same period, the number of places we deliver to has risen by morethan 160,000 to almost 1.9 million addresses. So we are delivering 20% less mail per mailbox thanwe did just three years ago,” NZ Post’s CEO Peter Fenton explained.
“We continue to work more efficiently. In the past year, we have reduced our costs by $30million. However, these efforts alone will not be enough to maintain a viable network servicing99.9% of homes, farms and businesses throughout the country,” he added.
From 1 October onwards, NZ Post will raise the price for a Standard Post medium letter fordelivery in New Zealand by 10% to 60 cents. The postage for larger letters sent within the countryand by FastPost will also increase. The new recommended retail prices for postage stamps willinclude the increased rate of GST.
The last increase in postage for a Standard Post medium letter from 45 cents to 50 cents, was inJune 2007. In 2008, postage increased on some larger letter sizes. “Even with the postage increase,New Zealand has one of the lowest standard letter postage rates in the OECD,” Fenton said.
Fenton stressed that people could continue to send letters at the current postage using theKiwiStamp, a non-denominated postage stamp, which holds its value even after postage increases. AKiwiStamp postage stamp purchased at the current recommended retail price of 50 cents can be usedafter the postage increase takes effect without the need for an additional stamp to meet therequired postage From 1 October, each KiwiStamp postage stamp will have a recommended retail priceof 60 cents.
Other price changes will affect parcels to maintain a system where postage increases in logicalsteps in relation to the weight and size of a parcel.
In terms of international mail, the postage required for International Air and InternationalEconomy letters, will increase by 10 cents per letter from 1 October onwards. The new pricesreflect the increased costs New Zealand Post is charged for delivering mail overseas.
International parcel prices, except International Express Courier, remain unchanged if paid forby PostShop label, Permit Post or a business account. Other payments such as using stamps andfranking machines, which attract GST, will increase.
