THE PRESS MONDAY, OCTOBER 19, 1987. Chopping at N.Z. Post

Press, 19 October 1987, Page 14

THE PRESS MONDAY, OCTOBER 19, 1987. Chopping at N.Z. Post

"The postal objective is the provision of efficient, quick mail services to and from any place in the world." So says the item on postal services that appeared, probably for the last time, in the Government’s Estimates for Expenditure presented to Parliament last June. Of course, it was never true that every place in New Zealand of any consequence had a post office to assist in the fulfilment of this object. Soon the statement will be hundreds of offices less true. These post offices will be orphaned by the break-up of the marriage of two enterprises that were adopted by the postal system years ago — telecommunications and banking. Telecommunications will flourish; banking, under the new name, Postßank, may struggle into a new, profitable era having reduced the reach of its services and having been relieved of the social responsibilities that were laid upon it by successive Governments to provide loans at very favourable rates. The ability of the Post Office Savings Bank to continue to give its former, special service, and to attract deposits at relatively low rates of interest, all but vanished under the present Government’s economic regime. The retrenchments by Postßank are clearly instrumental in the slashing of the number of post offices around the country. No amount of public fuss — and plenty is warranted — seems likely to bend the Government entirely away from its determination to make New Zealand Post a profitable enterprise on its own. The change has gone too far. Nevertheless, some reflection, induced by sufficient public complaint, may save some offices. Presumably, thousands of people in country areas are going to lose the private box services that are available at most post offices. This implies an extension of the rural mail services, doubtless at considerable cost. In towns and cities where private box

services disappear, box-holders who wish to maintain the convenience will just travel further and pay more or spend more time getting their mail. As for the handling of parcels, it is obviously going to become more cumbersome for many postal customers, and convenience may put business the way of private carriers. Much other business, customarily done in post offices for other Government departments, will rely more on a mail system' that is becoming more remote from a lot of their clients. The Government has recalled a subsidy of $4O million to maintain what were deemed to be unsound Post Office branches. Bearing in mind that it has picked up a good part of this sum by way of GST -on postal transactions, the Government might reflect that the taxpayer, as a postal user, may not be at all unhappy to have this GST, and more, returned to New Zealand Post if this ensured a better service all round. A blind dash to make a profit for the State, as. its owner, will almost certainly lead New Zealand Post into more retrenchments. This will be at a cost of over-all efficiency and convenience for everyone in the community, but to the advantage of the State monopoly. A handful of large post offices in the cities could doubtless be run very profitably indeed. This notion overlooks the fact that every postal transaction has two ends — one of which may be quite remote from a city. The cuts announced last week will not look wise or welcome until the Postmaster-General or New Zealand Post, can show that the service will not be diminished and that the maintenance of a respectable service with fewer Offices will really save a substantial amount of money for the community. At first sight, the cuts do not look as if they will achieve either. Every user of the mails must be concerned about this — not just those locally interested in preserving a handy post office.