Firm letter price aim

Press, 31 March 1989, Page 3

Firm letter price aim

PA Wellington New Zealand Post will try holding the standard letter price to 40c for another year. The increase in company tax and. GST would have an impact because as the price last increased in February, 1987, just before New Zealand Post was set up as a Stateowned enterprise, said the managing-director, Mr Harvey Parker. However, the recent Government decision to retain monopoly protection for the standard letter was a key factor in being confident about holding the price.

Mr Parker said the profit result for the present financial year would be more modest than the 1987-88 after-tax profit of $72 million, but still satisfactory. There had been a revenue loss of $5O million over the last year through loss of agency business for Postßank and Telecom. This had resulted from Telecom customers paying accounts by mail and Postßank customers going to branches not run by New Zealand Post. As New Zealand Post was paid by Telecom and Postßank on a transaction basis, loss of business put pressure on outlets.

Mr Parker said New Zealand Post was aiming for a network of 340 official post offices by June or July this year.

On March 1 there were 1375 outlets, compared with 1234 on April 1, 1987.

These consisted of 438 official post offices, 173 fixed-cost agencies, 332 postal delivery centres and 432 stamp retailers.