Review of museum, post office

Difficult trading conditions have forced the Lakes District Museum Inc board to review its business operations both at the museum and at the historic Arrowtown Post Office.

In a statement yesterday board chairman John Wilson, of Arrowtown, said staff at the museum and post office had been advised and the board was conducting a "comprehensive consultation process" with them, which began yesterday.

The businesses employ a total of 11 staff, four of those full-time and the remainder part-time.

The Otago Daily Times understands both will stay open but the board is looking at options to save money and generate revenue, which could include reducing staff or changing opening hours.

Mr Wilson said the board needed to be proactive in addressing the "difficult" economic climate.

"The outcome of the review is expected to be announced by the end of the month."

Lakes District Museum was established in 1948 in the billiard room of Arrowtown's Ballarat Hotel.

In 1955 it relocated to the 1875 vintage former Bank of New Zealand on the corner of Buckingham and Wiltshire Sts.

The bank and parts of the old township at the museum's site have been retained and incorporated into displays, including the bank's stables, and part of the bank residence.

The museum also runs the historic post office, on Buckingham St opposite the museum.

It is one of the few remaining post offices in New Zealand still called a "Post and Telegraph" office, which is available for the payment of bills and collection parcels, as well as providing information to tourists.

The museum became the postal agency in 1991, and when New Zealand Post pulled out of Arrowtown in 1995, it bought the building for a below-valuation $175,000. The Queenstown Lakes District Council chipped in with $40,000 from a land sale and the museum with more than $50,000. The community raised the other almost $85,000.

In May, postmistress Marilyn Everett told the Queenstown Times the financial situation of the post office was "very precarious", and financial assistance was needed to keep the business going.

The normal day-to-day operations of both businesses were "expected to continue without interruption" and the board remained "100% focused on providing an outstanding and unique community resource", Mr Wilson said.

Arrowtown traditionally relies on a busy summer period to get through the winter months.

The past few years had seen good numbers of tourists from key markets like North America, Europe and the United Kingdom, which had helped to ensure the viability of Arrowtown businesses.

However, this year earthquakes, ash clouds, a late winter and unfavourable exchange rates had provided more challenging times for the town.

The board's deputy chairwoman, Pamela Wilson, could not be reached for comment last night.