Open Competition Now Possible in Postal Services

"Once again, New Zealand is a leader in improving the services available to its people, as one of the first countries to allow full postal competition," said Minister of Communications, Hon Maurice Williamson, today.

Mr Williamson was commenting on the passage of the Postal Services Bill through Parliament.

"This Bill allows competitors to New Zealand Post Ltd to deliver letters at competitive prices for the first time, "the Minister said.

"This can only benefit customers, who will now begin to have a choice of service supplier, just as they have had in almost every other industry. As in airlines, broadcasting and telecommunications, competition will bring pressure for improved prices, better services and different types of services to be offered.

"I have worked to achieve this since becoming Minister. It is highly satisfying to know that all our major communications industries are now open to competition.

"All New Zealand Post Ltd delivery services will continue to be provided, being fully protected under a new Deed of Understanding entered into between myself as Minister of Communications and New Zealand Post Ltd on 17 February 1998. This provides for current 6 and 5 day delivery services to continue. It also prevents the reintroduction of a rural delivery fee.

"Free postal services currently provided by New Zealand Post to the blind will also continue as at present while longer term arrangements are developed.

"New operators will be able to enter into business in smaller towns and provincial areas as well as cities," Mr Williamson said.

It is expected that the Bill will be brought into effect from 1 April. New Zealand Post Ltd will continue to be the only company able to deliver basic letters until it is brought in to operation.

New operators are required to register with the Ministry of Commerce, in Wellington, before they can commence services.