Fastpost delivery axed as volume drops 23pc

New Zealand Post is abandoning its Fastpost service because it is costing too much.

The service had a delivery target of the next working day in major towns and cities.

But NZ Post said it had reviewed its priority mail network and Fastpost would no longer be available after January 1 next year. It was not being used sufficiently and was not financially sustainable, it said.

‘‘Customers will be able to use courier products as an alternative way for sending their priority mail and we acknowledge that this is a big change for those who currently use Fastpost.’’

It said only 1 per cent of mail went via Fastpost, and its volumes had declined 23 per cent over the past year.

‘‘The amount of all letter volumes continues to decline significantly, at a rate of approximately 60 million items a year, and, despite ongoing cost reductions, this change is necessary,’’ the company said.

‘‘We are committed to providing priority services to our customers. Standard Post remains unaffected.

‘‘For business customers, a new priority mail service will be available in and between Auckland, Wellington and Christchurch.

‘‘New Zealand Post will continue to seek ways to improve efficiency and make cost savings to maintain a commercially viable postal network, and to give our customers the best possible service.’’

The union for NZ Post workers, E tu, said the move could mean job losses. But E tu industry coordinator Joe Gallagher said the company had indicated it would redeploy posties where possible.

Its parcels and logistics business was growing, he said.

‘‘While this means change for many of our 500 postie members, there will be opportunities within the delivery area at New Zealand Post. New Zealand Post has said it hopes to absorb lost jobs into other areas and we’ll be working to ensure that happens.

‘‘We want to protect full-time, good quality jobs and to keep the vital link which posties provide to the community.’’