2 Nov 2013

Privatisation unlikely, says NZ Post

2:37 pm on 2 November 2013

New Zealand Post says it is unlikely to try to make itself financially viable through privatisation.

The state-owned enterprise announced on Friday that between 1500 and 2000 jobs will go in the next three years, as part of its development strategy.

NZ Post logo.

Photo: RNZ

New Zealand Post says it has opportunities to grow the Kiwibank arm of its business, including offering insurance, in order to make the company more financially viable.

However, it says that would require an injection of capital, which is unlikely to come from the Government because of its commitment to return to surplus by 2015.

Chairman Michael Cullen says a partial float on the stock market is also unlikely because that would hurt the company's brand, given Kiwibank's point of difference is that it is New Zealand owned.

He says the Government has indicated New Zealand Post is not part of its model for mixed ownership of state assets.

The company says it has had informal talks with the Superannuation Fund about whether it might buy part of the business.

Meanwhile, chief executive Brian Roche told TV3's The Nation there is still a future for letters, but as a business the company is in a state of decline.

He said he expects there will still be mail being posted 40 years from now.

The company is currently delivering 750 million items a year, but Mr Roche says new technology will cut into that figure.