NEW DEED OF UNDERSTANDING GUARANTEES UNIVERSAL SERVICE

  • Maurice Williamson
Communications

"The new Deed of Understanding between the Government and New Zealand Post offers certainty for consumers in the new competitive postal environment," Communications Minister Maurice Williamson announced today. Mr Williamson and New Zealand Post Chairman of the Board, Ross Armstrong, today in Wellington signed the New Deed of Understanding between Government and New Zealand Post.

"Residential and rural consumers can be assured that services will remain at least at their present levels after the introduction of competition in postal services later this year," the Minister said "Under the Deed, New Zealand Post Limited is bound to maintain its current 6 day a week delivery to 95 per cent of delivery points and to maintain a minimum network of postal outlets. "In addition, New Zealand Post undertakes not to reintroduce the rural delivery fee.

"It will offer interconnection to other postal operators at terms and conditions at least as favourable as those offered to customers, so that competition can develop on a fair and equitable basis. "The price of the standard letter delivered by New Zealand Post will also be capped at no more than 45 cents for a period of three years. "This is an exciting time with competition likely to offer substantial benefits to users of the postal system. New service providers will be free to enter the market offering consumers an increased choice in prices and types of services. "The introduction of competition will help contribute to New

Zealand's international competitiveness, with flow-on effects to the domestic economy.

The new Deed, which takes effect immediately, will ensure that the interests of consumers are protected," Mr Williamson said. The Postal Services Bill is currently before the House for further consideration. Dependent on progress in the House, it is intended that the Bill come into force from April 1998. Until such time as it enters into effect, New Zealand Post Limited retains its statutory monopoly on the delivery of letters.