NZ Post to come under review

The Government is to review its agreement with state-owned New Zealand Post amid concerns that the big player is pushing small postal companies out of the market.

Official briefing papers to the new Government, issued yesterday, recommend a study of the 30 small operators’ access to the letter market, and that the overdue review of NZ Post’s deed of understanding be held next year.

“Postal services have been fully competitive since 1998, but there are ongoing complaints that New Zealand Post frustrates access to its network for competitors,” the papers say.

Communications Minister Paul Swain said last night that the study and review needed to be completed before the next election.

The deed of understanding requires NZ Post to provide access to its network to competitors on terms comparable with those it offers its own customers.

Mr Swain has met the concerned postal companies, and liaised between them and NZ Post about the complaints.

“As in all these things there is claim and counter-claim,” he said. “NZ Post is required to provide access, and that access has to be provided on reasonable terms and conditions. Obviously they don’t want to be subsidising competitors.

“On the other hand, the small competitors are arguing that NZ Post is using its position to drive a very high price.”

The papers say that despite the 1998 deregulation, NZ Post remained “highly dominant” in the postal market.