Ministers propose changes to Norway’s post office network
The Norwegian Government has issued a white paper proposing changes to Norway Post’s retail network to improve customer service and cut costs. The Ministry of Transport and Communications is set to allow the Post to convert 149 of its post offices into in-store facilities run by partners, on the condition that postal services will be “at least as good as today”.
Norway Post should have at last 1,420 post offices and in-store retail counters, ministers said.
Minister Magnhild Meltveit Kleppa said lower operating costs would strengthen Norway Post’s ability to maintain high quality services across the country even where mail volumes fall more than expected.
“Post offices in-store is a good way to improve the accessibility of postal services through longer opening hours,” said the minister. “Customer surveys show that customers are satisfied with in-store postal counters.”
The government is also proposing to improve accessibility for consumers to pick up parcels by allowing Norway Post to establish new parcel delivery points, in addition to the current retail network.
Other measures in the proposals will allow Norway Post to reduce the number of post offices legally obliged to provide a full range of financial services, in order to cut costs. The Ministry said the Post would only be obliged to provide financial services in rural areas.
Norway Post said the proposals would see only 30 post offices obliged to offer banking services, as financial services are replaced with an online service.
The company said it was talking with the unions before deciding on changes to the retail network.
“This is recognition of the need for successful restructuring and good support to continue efforts to develop the group,” said Norway Post CEO Dag Mejdell of the government’s proposals.
“For the Post, it is important to stay ahead of the development and restructuring so that in time we can make the right process changes and provide certainty for our employees.”
The Norwegian government is also cutting the cost of borrowing for Norway Post, reducing its interest rates from 10% to 9%. The Ministry said the move was in-line with requirements for other state-run companies. “It is important that the Post has a focus on profitability when investing in business beyond its core activity,” said the minister.
Digipost
As it laid out its proposals, the government also praised work on a new digital mailbox service as an “important priority” for Norway Post. The Post launched a new digital mailbox last year to lead the development of physical mail into a digital channel.
About 200,000 people and 50 businesses have signed up to send letters into the digital mailbox network so far.
“I would like to commend the Post for developing new and better services based on new technology,” said Meltveit Kleppa.
Norway Post said it has asked for clarifications from the government on whether it could reduce the delivery of mail on Saturdays to cut costs, stating that such a move would support the government’s desire to move all physical mail from consumers into a digital mailbox.
Mejdell said: “The Post’s biggest challenge is technological progress that causes people’s use of postal services to change. When the amount of physical letters goes down, it will be important for the Post to succeed in parcel distribution and digital mail.”
The government is considering whether to switch public sector communications to a digital service, with Norway Post lobbying to be allowed to tender for the work.
