David Walsh: NZ Post CEO on NZ Post cutting services back and closing post offices

New Zealand Post is moving to review its offerings amid a recent move to cut back on services.

A new Government agreement will let it close almost 400 postal outlets, and reduce mail deliveries.

They'll now only be required two times a week for most areas, down from three - and can fall from at least five times weekly in rural areas, to three.

NZ Post CEO David Walsh says these changes reflect New Zealand's changing communication habits.

"Our role is to deliver the services New Zealanders need - we'll keep delivering mail and we'll have to respond to the circumstances we're facing, but that's our job."

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Episode Transcript

Speaker 1 (00:00):
And what will come as absolutely no surprise to anyone.
New Zealand Post has decided to deliver mail less often
because of declining male volumes. Now, if you live in town,
your three delivery days are going to go down to two,
and if you live rurally you'll five delivery days are
down to three. David Walsh is the CEO of New
Zealand Post.

Speaker 2 (00:15):
Hi, David, I get a Heather. How are you well?

Speaker 1 (00:18):
Thank you? This is probably over, do you don't you think?

Speaker 2 (00:21):
Yeah? Look, the announcement today is something that we've been
aware of, really as a result of the way that
these Landers have changed their communication and habits. So it's
twenty thirteen since the last time we had a change,
and this is reflective of what's going on now.

Speaker 1 (00:35):
Twenty thirteen do you reckon? So do you reckon? It'll
be twelve years before we have another change down.

Speaker 2 (00:41):
Well, look, it's been hard to pick really, look where
New Zealand Posts have been around for one hundred and
eighty five years. And look, our role is to deliver
the services that New Zealanders need. We'll keep delivering our mail,
We'll have to respond to the circumstances we're facing, but
you know, that's our job. That's what we'll continue to do.

Speaker 1 (01:00):
You'd get another review when male volumes dip below. Is
it one twenty million?

Speaker 2 (01:06):
Yeah, look, there is a trigger point there that just
allows you know if there's a reset of if the
circumstances are needing to be revisited. But look, we're not
jumping to any conclusion.

Speaker 1 (01:17):
Well, what's your male volume at the moment.

Speaker 2 (01:20):
So about one fifty million.

Speaker 1 (01:23):
You'll had one twenty million in the next three years,
don't you reckon?

Speaker 2 (01:26):
Yeah, Look, we fully expect male to clinb male reductions
to continue. These ylanders are getting their communications very, very differently,
so it's really just a chance to reset. I wouldn't
get too presumptuous about but David, I mean might care
at that time.

Speaker 1 (01:42):
It's entirely feasible, isn't it that we've just gone to
two days to urban addresses, three days to rural addresses,
and within the next three years it'll be one day
urban addresses, two days rural addresses. That's possible, isn't it.

Speaker 2 (01:52):
Well, yeah, again, I wouldn't want to speculate on it.
We've certainly talked.

Speaker 1 (01:58):
Yes, David, it's your job speculate. Well, not maybe to me,
but it's your job to know where this is going,
because you're the CEO.

Speaker 2 (02:05):
Yeah, well, we tell me we deliver a mail based
on what the Zelanders require us to do. They've changed
the way that they communicate, will continue to respond to
that change. Yeah, but you know, we've we've got a
very big delivery network. We were out there delivering parcels
every day. We've signaled to the long term strategy. Might

(02:26):
see our network deliver mail in terms of what's left over.
So yeah, there'll be way too early for us to
speculate what might happen in a few years from here.

Speaker 1 (02:35):
David, it sounds to me like you are bracing yourself
for negative reaction. I would have thought that most people,
I mean, look, call me naive, and maybe I am,
but I would have thought that most people like me
would understand this is where it's going and this is
probably not a bad thing, don't they.

Speaker 2 (02:51):
Yeah, it's certainly about not being concerned about the public
reaction either. People have changed the way that they communicate.
You know, back in twenty thirteen, I think we delivered
six hundred and fifty million letter items. It's like six
or seven items per household per week. We're down to
one or two. New Zealanders are changing the way they

(03:11):
want to receive information, but we will respond to whatever
is available to us. And I think you're right. Most
people see what comes through their mailboxes every day and
they are just accordingly. So that's our job and we'll
continue doing it.

Speaker 1 (03:27):
Yeah, and you do a great job. Thank you, David appreciated.
David Walsh, CEO of New Zealand Post. For more from
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