NZ Post branches are closing because they just aren't used enough, says MP

Wednesday, 5 December 2018

Should New Zealand Post be able to close its last remaining 79 standalone post shops in suburbs and towns around the country? An MP from each side of the house shares their opinion.

**Priyanca Radhakrishnan

​Labour List MP based in Auckland's Maungakiekie**

I resisted getting an e-reader for a long time because I loved the familiar feel of paper. Books have always been my sanctuary and envisioning a world without them was scary. Yet, I'm not one who fears change per se. After all, I moved from the country I grew up in to one where I knew no one. I suspected the move would change my life – and I was right.

Perhaps the key to embracing change, not fearing it, lies in its perceived benefits. Change is afoot with NZ Post and not everyone is convinced that it will be beneficial for them.

NZ Post is shutting nearly 80 branches across the country. Fewer people are posting letters these days and NZ Post's core services are not being used as much as they used to be. These changes are partly due to Kiwibank branch closures, since NZ Post and Kiwibank are co-located in some areas.

**READ MORE:

Communities fight to keep Post Shops as closure looms​

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An example of this is in Petone. Ginny Andersen, the Labour List MP based in Hutt South, is fighting the closure of her local Kiwibank/NZ Post branch alongside her community. She tells me that Hutt South is growing in population and that the change will negatively impact senior citizens and those for whom English is a second language.

Rongotai MP Paul Eagle says that there's more than meets the eye when it comes to his local post shop. It doesn't just offer postal services – it's a community hub where locals come together and practice the forgotten art of chatting. He gets quite emotional about his local post shop and the role it plays in connecting people.

NZ Post is a state-owned enterprise and has a Deed of Understanding with the government to ensure they maintain a network of at least 800 service points throughout NZ. Contrary to popular belief, the government cannot dictate which branches should remain open or can be closed. Those are operational decisions made by NZ Post.

However, the Minister responsible for NZ Post, Finance Minister Hon. Grant Robertson, has said that the government is exploring other options. One option is to support regional hubs that could offer key services, including banking and postal services. Australia has a similar one-stop-shop model where banks rent spaces and other services are also offered.

Change is often described as the only constant in life. As change happens in our communities, I'm glad we have a government that explores options to make it beneficial to those who are disproportionately affected.

**​Stuart Smith

National MP for Kaikoura**

New Zealand Post's decision to close standalone branches is, as a business, entirely up to them.

As a regional MP I'm naturally no fan of businesses, local or national, closing their doors in our regions, but I'm also realistic.

The latest closures should be no surprise to anyone, given how significantly our use of mail services has dropped as people increasingly turn to electronic means of communication.

The last thing we want, or need, is a bunch of bureaucrats blustering about how unfair it is and dictating business policy, particularly when they speak with no business experience of their own.

If New Zealand Post's services are as well-used and vital to our society as these people say, then we would not be in this position.

New Zealand Post has for years been franchising their services to other retailers, which to me seems a sensible move to retain a service that is clearly in decline, and would otherwise be completely economically unsustainable.

As I said, I don't like to see businesses –  ones we still use a great deal –  closing their doors. For that reason, this year the Friendly Societies and Credit Unions (Regulatory Improvements) Amendment Bill was passed under my name in Parliament.

Regional New Zealand's economies will be boosted by the return of credit union and building society offices.

In the last few years we've seen more and more large trading banks leave our regional towns as they consolidate into main centres. For locals left with nothing more than an ATM, this means any face-to-face banking requirements – like securing a home or business loan –  involves a trip to their closest main centre, which may be quite a distance.

Through my Bill, credit unions can once again compete with these large banks.

An important change from the Bill that will benefit our regions is allowing credit unions to lend and offer other financial services to Small and Medium Sized Enterprises (SMEs) owned by a member of the Credit Union. This will be significant for regional towns where credit unions are a pivotal part of the community, and will prevent lending services being lost to larger trading banks.

Unlike the post service, which has a rapidly declining market, there is an ongoing need for bank branches in our regions.

Perhaps these branches may wish to also provide a postal service – if there is a definite need for it.