#1Nov 11th, 2007
October 31, 2007 - 20:00
Your Public Post Office Delivers Campaign / Bulletins
The federal government has proposed legislation to partially deregulate Canada Post. This legislation could undermine Canada Post's ability to provide universal public postal service. It could also set the stage for further deregulation which would be harmful to postal workers, the public and small business.
On October 29, 2007, the government introduced Bill C-14, an act to amend the Canada Post Corporation Act. If approved, this legislation would partially deregulate Canada Post by removing international letters from Canada Postís exclusive privilege to deliver letters.
Canada Post has an 'exclusive privilege' to collect, transmit and deliver letters, including international letters, in order to finance the corporation's universal service obligation.
The corporation estimates that international mailers (also known as remailers) currently siphon off $60 to $80 million per year in business. The big problem is that the remail business is increasing and if the big remailers continue to grow, Canada Postís lettermail revenue will plummet as will its ability to provide service at affordable rates, especially in rural areas.
A bit of background
International mailers collect and ship mail to other countries where the mail is processed and remailed at a lower cost. Some mailers ship to the United States, where the basic rate is slightly lower. Some ship to developing countries that have lower costs as a result of a two-tier international mail system that is designed, in part, to address the differences between developed and developing countries.
At the moment, remailers illegally collect and ship letters. Canada Post has the exclusive privilege to collect, transmit and deliver letters in our country. This is why remailers have lobbied vigourously over the last two years to change the exclusive privilege provisions of the Canada Post Corporation Act. Bill C-14 is the result of this."