NZ Post to hike cost of stamps

MICHAEL FOREMAN
Last updated 14:57 20/03/2014

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New Zealand Post will raise the standard letter rate to 80 cents as the state-owned postal service struggles to rein in losses caused by falling mail volumes.

From July 1 the cost of sending a medium-sized letter by standard post within New Zealand will rise by 10c from the current 70c, while the large letter rate on standard post will rise 20c from $1.40 to $1.60.

Untracked parcels will cost between 10c and $1 more to send within New Zealand while the cost of sending parcels overseas will increase by an average of 4 per cent.

International postage rates for most letters and postcards will increase by 10c while the cost of sending larger letters overseas will rise between 10c and 30c depending on the destination.

However, the price of the premium letter services, FastPost and BoxLink, would remain at their current levels, NZ Post said.

NZ Post said the price increases were necessary to maintain a national postal service in the face of rising costs, increasing delivery points and sharply declining mail volumes.

Letter volumes declined by about 7.5 per cent last year and have fallen by a third in total since 2006.

NZ Post's most recent annual report showed that it lost $51.5 million on core postal services revenue of $796m in the year to June 30. This compared with a net profit of $25.5m on postal revenue of $863m in 2012.

NZ Post said the postal network had fixed costs regardless of the volume of mail entering the network. These costs were increasing in line with the growing population and the resulting increase in delivery points.

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- Fairfax Media

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