NZ Post plan spells higher rural costs, claims Burton

Ruapehu Bulletin, Volume 14, Issue 684, 29 April 1997, Page 5

NZ Post plan spells higher rural costs, claims Burton

DeregulatingNew Zealand Post is sure to result in higher postal costs for rural New Zealanders, according to Labour MP for the Taupo electorate, Mark Burton. Communications Minister Maurice Wi lliamson has introduced a Bill to Parliament which will remove New Zealand Post's monopoly on the standard letter post, allowing private companies to compete with New Zealand Post. "This is the first sneaky step towards the privatisation of a strong, healthy, state-owned business," Mark Burton said. "I am far from convinced that competition will bring the benefits Mr Williamson claims. Indeed, there may well be plenty of competition in easily accessed areas, in large towns and cities where the greatest volume of mail occurs. That's where the profits are to be made." "But there will be much less interest in serving rural areas such as ours, where there is less mail volume and the routes are less economic" "Pricesforpostageto and from rural areas could eventually go up as a consequence of this — not come down." "The Government has drafted a deed of understanding which offers some protection in the short term. But in the medium and longer term there is no absolute guarantee of continued delivery in remote areas at affordable prices."