New Zealand Post Annual Report 2006
New Zealand Post Annual Report
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New Zealand Post Annual Report – Financial Statement 2006
New Zealand Post Annual Report – Financial Statement 2006
Read MoreNew Zealand Post and Salmat propose joint venture in unaddressed mail distribution
New Zealand Post Limited and Salmat Limited announced today that they are working on a proposal for a joint venture business in unaddressed mail distribution within New Zealand.
Subject to clearance by the Commerce Commission and other conditions, New Zealand Post and Salmat propose merging the businesses of their respective unaddressed mail subsidiaries, Letterbox Channel Limited and Deltarg Distribution Systems Limited.
New Zealand Post and Salmat will today file an application with the Commerce Commission for clearance to become equal 50 pct shareholders in a new joint venture company that would acquire the businesses of Letterbox Channel and Deltarg.
The proposed joint venture would combine the current strengths of Letterbox Channel and Deltarg while realising a number of operating efficiencies and network synergies. The proposed company would continue to provide an excellent, economic service to current customers of Letterbox Channel and Deltarg, while being better positioned to compete strongly for a share of overall media advertising spend in New Zealand.
New Zealand Post’s Group Manager, Enterprises, Stephen Henry, and Salmat’s Divisional Director, Targeted Media, Peter Boyle said the proposed joint venture company would have estimated revenue of between NZ$ 40-50 million in its first full year of operation.
They said New Zealand Post and Salmat proposed contributing the assets of Letterbox Channel and Deltarg respectively to the proposed joint venture company in acquisition of their 50 pct shareholdings. Independent assessment and discussion between the parties had determined that the two businesses were of comparable value. The shareholders would share in the joint venture establishment costs and initial working capital requirements.
Mr Henry and Mr Boyle said Letterbox Channel and Deltarg would continue operating separately and in competition pending the Commission’s decision on the clearance application and final decisions to be made by New Zealand Post and Salmat.
Read MoreThe Postal Market 2010 and Beyond – Emerging
Postcomm’s Strategy ReviewA summary of emerging themes from Postcomm’s Strategy Review
In August 2006 Postcomm published a Strategy Review document for consultation. The review looked at whether we needed to alter our regulatory policies so we can continue to protect mail users in the future – from 2010 and beyond – and yet allow mail operators the flexibility to adapt to changes in the market.
This document briefly summarises emerging themes in the responses we received to that Strategy Review document.
Full document – Postcomm’s Strategy Review. The postal market 2010 and beyond: Emerging Themes (pdf, 429KB)
What respondents told us
Royal Mail said the current regulatory framework is no longer fit for purpose and is subjecting the company to serious financial pressure. It said Postcomm should allow Royal Mail to compete in the business market without any restrictions and limit regulatory interventions to stamped mail.
Royal Mail’s competitors pointed out that Royal Mail, which is focusing hard on retaining every item of mail, enjoys the advantages of economies of scale and the unique privilege of VAT exemption. They questioned whether our current regulatory tools are sufficient to deal with Royal Mail’s market dominance.
Postcomm’s main conclusions in the emerging themes document, on which we are seeking feedback, are:
Customers are benefiting from competition. However, Royal Mail is finding the impact of competition and of new media very difficult to cope with, in part because of its slow progress in improving efficiency and in developing new services. The universal service (USO) remains profitable and is being provided to a very high quality of service.
More innovation is needed in order to exploit the changing mail market. Mail operators in the UK are not fully grasping the opportunities – or facing up to the challenges – of new communications media to the extent that some of their European and North American counterparts are. Mail has some important characteristics, such as personalisation and hand delivery, which valuably differentiate it in a digital world. If operators focus on how their mail products can add value for users, there is no reason to accept the prospect of a contracting mail market.
Postcomm reaffirms its aim to move to less detailed regulation. If Royal Mail can improve its cost transparency and respond better to the changing market, Postcomm should be able to scale back the regulatory regime from 2010 onwards.
The universal service will be secured in a changing mail market. Postcomm is responding to Royal Mail’s request to remove business products from the universal service and, in doing so, it wants to promote a wider debate as to how the scope and specification of the USO should adapt to changing social, economic and technological conditions. However, the basic right to post a stamped letter anywhere in the UK for the same price will remain at the centre of the universal service.
New Zealand Post: Free postage for communities
Organisations that give communities a helping hand can soon get one themselves.
Applications are about to open for Community Post, a postage giveaway that benefits thousands of non-profit community organisations every year.
New Zealand Post is making one and a half million free postage paid envelopes available for community organisations to use for campaigns or programmes which help the community.
That’s an increase of 500,000 on last year’s donation.
Last year 4,200 organisations benefited from Community Post. Groups ranged from local Plunket to Maori Wardens, to sports clubs and to organisations supporting the disabled in the community.
New Zealand Post national sponsorship manager, Hermione Bushong says demand for Community Post has increased markedly over the years.
She says Community Post envelopes help groups because funds that would otherwise be spent on administration costs can be directed towards core community services.
Community Post has helped more than 25,000 projects run by New Zealand non profit organisations since 1999.
Read MorePost & Parcel Magazine
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