New Zealand Post 5c rise but a NZD20m revenue boost
The cost of sending a standard letter is set to rise 5c, an increase New Zealand Post puts down to escalating costs and the fact fewer of us are sending letters.
From April 5 it will cost 45c to send a standard domestic letter. Letters sent FastPost will cost 90c, 10c more.
The 5c increase for standard letters alone could boost New Zealand Post’s coffers by about NZD20 million a year.
In 1991, the price of sending a standard letter increased from 40c to 45c. In 1995, due to growth in mail volumes and efficiencies within the organisation, it dropped back to 40c.
But Peter Fenton, New Zealand Post Group manager letters, said that over the past few years it had been increasingly difficult to keep the price at 40c.
“New Zealand Post has managed to hold stamp prices for as long as possible but given escalating costs and the changing trends in letter volumes, it is necessary to make these changes now.”
Each year for the past four years the total amount of domestic mail has dropped by about 1 per cent.
New Zealand Post chief executive John Allen said the main reasons were the availability of other options such as email and text messaging, and busy lives.
But online shopping had prompted growth in the number of packets and parcels handled. Businesses were also increasingly using mail as a marketing tool.
“Letters are not dead. They remain an extraordinarily cost- effective communication tool.
“Mail works for businesses selling to their customers.”
Mr Fenton said that despite the 12.5 per cent price increase, New Zealanders still paid one of the lowest standard postage rates in the developed world _ only Hong Kong and the Czech Republic offered a cheaper price. The equivalent price of sending a standard letter in Australia was 57c, , Britain 76c and Norway $1.30.
Consumers’ Institute chief executive David Russell said any price increase was disappointing but it had to be weighed up against the many years the price hadn’t changed.
“They have held the price at 40c for a long time so I can’t really rip in to them.”
The price of a FastPost stamp had not increased since 1989.
The new 45c stamp, which features a sperm whale swimming off the Kaikoura coast, will go on sale on March 22.
