Competition In Postal Services From 1 April

"A number of companies have publicly expressed an interest in entering the postal services market and they will be able to do so from 1 April this year," Minister of Communications Hon Maurice Williamson said today

The Governor-General yesterday signed the Postal Services Act Commencement Order which brings the Postal Services Act 1998 into force on 1 April 1998

After that date, any company or individual will be able to compete head-on with New Zealand Post Limited in the delivery of letters, provided that organisation is registered with the Ministry of Commerce.

"Competition leads to greater choices, better prices and generally better deals for consumers,"' the Minister said.

"We have seen this time and time again in air travel, telecommunications and even local supermarkets. The same is likely to be true of postal services.

"In order to help guarantee the security and integrity of the postal system, intending postal operators will have to be registered by the Ministry of Commerce. Those with criminal histories or convictions under Postal Services legislation may be declined registration. A registration fee of $95 will be payable in order to cover the costs of processing each application.

"This a tremendously exciting time for New Zealand. The Postal Services Act brings our country into the forefront of liberalisation of postal services.

"There will be significant flow-on effects into the economy as a whole as postal prices reduce and additional employment is created in the postal services sector," Mr Williamson said