New Zealand Post has signalled to the Government it will need to invest in KiwiBank in two years' time to ensure the bank continues to grow.
The state-owned company initially approached the Government in 2012 about investing immediately in KiwiBank, but in a letter in February this year to shareholding ministersTony Ryall and Bill English it said the matter was now not so urgent.
In the letter, New Zealand Post said a change in banking regulations and slowdown in KiwiBank's business had reduced the immediate need for a capital injection.
But chief executive Brian Roche now says capital will soon need to be invested in the bank to ensure that it remains successful.
He says that in the 10 years KiwiBank has been going, New Zealand Post has invested $360 million in it without calling upon the Government.
Subsidy 'last option'
New Zealand Post says government subsidies will be a last resort if the company cannot make necessary changes, such as reducing postal deliveries from six days a week.
External relations manager John Tulloch says if key changes in the organisation are not made, subsidies could start at $30 million and increase yearly.
Mr Tulloch says strategies are in place to try to make sure delivery frequencies are not reduced.
Mr Roche says all options remain open until a business plan is completed at the end of June.
The Postal Workers Union says if deliveries are cut, the number of mail delivery staff will be reduced by about 25%.
