P.O. subsidy cut blamed

Press, 9 October 1987, Page 1

P.O. subsidy cut blamed

Political reporter The Opposition claimed yesterday that the cut in the Government subsidy for uneconomic Post Offices Would lead to hundreds of suburban or rural post Offices being closed. The subsidy had been an election bribe, and New Zealanders had now been betrayed by the Government, said the Opposition spokesman on the Post Office, Mr Roger Maxwell. New Zealand Post confirmed yesterday that the original subsidy of about $4O million, announced in February, would now be $23 million. However, the corporation’s communication manager, Mr Alan Meek, said that the original figure was given when no-one

was quite sure what level of subsidy would be needed. Since the corporation came into existence on April 1, costcutting meant that only $23 million would be required. This cost-cutting included the loss of 1000 staff, through attrition, and a 15 per cent reduction in the transport fleet. New Zealand Post has suggested that the subsidy reduction; did not mean there would be big closings. Each of the corporation’s 1200 post offices were being assessed, but it was too soon to say how many would ultimately close. The Government subsidy was to be an Interim measure in the present financial year, while the post offices were reviewed.