NZ Post may cut Saturday deliveries

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Getting a visit from your postie six days a week could be a thing of the past as proposals to cut Saturday mail deliveries take a step forward.

As snail mail gets overtaken by email, NZ Post is looking to cut costs but there are concerns whether the cuts will do more harm than good to the already waning postal service.

Mail delivered every second day, no Saturday delivery, people picking up their mail themselves, developing a two-tier mail system where premium letters cost more and are delivered quicker, combining courier and mail delivery services and stamp price increases are some of the ideas proposed to help New Zealand Post save money in an increasingly digital world.

The options were floated in a letter from NZ Post chairman Jim Bolger to State Owned Enterprises Minister Simon Power.

Bolger says the mail delivery business is not currently running at a loss but the trend lines show it will, and the change is likely to be quick.

It is "not far away but not tomorrow", says Bolger.

"The mail volumes are declining quite rapidly, they have been declining for a few years, it's happening all around the world, every postal jurisdiction has to look at how it delivers the mail."

His letter contained a "menu of options" about how NZ Post could meet community expectations and run a sensible business in the face of these changes, Bolger says.

"If we don't have mail we can't deliver it. We can't continue to have vehicles and people going up and down every street every day with nothing to deliver, doesn't make any sense at all."

Bolger says they are just moving with the times.

"The ubiquitous email is taking over in many ways and we're just responding to that," says Bolger.

More emails mean posties' bags are lighter than ever, with almost 30 million fewer items being sent in the six months to December.

That means profits are down and NZ Post is tightening its belt.

"No matter where you are in the world, this is the issue in the postal service," says Bolger.

Another system being trialled overseas is to deliver to a set of mail boxes and people receive an electronic message when they get mail.

It is an example of using technology as well as losing business to technology, Bolger says.

"Let's not pretend that this is going to be an easy issue to resolve."

As more people move their communications to the phone, email and social networking sites the problem will get worse not better, he says.

"We're carrying hard copy letters on the wrong side of communication history."

But all the talk of cutbacks is news to the unions, who say they are a little surprised by NZ Post.

"Up until now they've been adamant that there'll be six day delivery&so we're quite surprised to hear this being spoke about in this manner by the chairman," says Postal Workers Union spokesman John Maynard

New Zealand Post told ONE News that Saturday can be one of its busiest days because it's an opportunity for businesses to put their ads in people's letter boxes.

NZ Post's board has not made specific recommendations because it is working through the options, Bolger says.

However, he says the public "must expect change, there will be change".

Communications Minister Steven Joyce says he will listen to all the proposals being brought forward by NZ Post and what the public think of them before making any decisions.