Postal bill to partially deregulate Canada Post is premature and potentially dangerous

For Immediate Release

Ottawa – “The federal government has proposed legislation which could undermine Canada Post's ability to provide universal postal service, particularly in rural and remote parts of our country. They have made this major move without conducting a proper review of the post office,” said Deborah Bourque, National President of the Canadian Union of Postal Workers (CUPW).

On Monday, 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 Post’s exclusive privilege to deliver letters.Canada Post was provided with 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 already siphon off $60 to $80 million dollars per year in business.

“We are opposed to this partial deregulation and concerned that it could open the door to further deregulation,” said Bourque. “Furthermore, we do not understand why the government would take such a big step prior to conducting a thorough review of Canada Post.”

“The exclusive privilege should not be dealt with as a side issue.”

Bourque said the privilege should be examined within the context of the post office’s mandate, as it was during the last mandate review of Canada Post in 1996.

A mandate review had been expected. Minister Lawrence Cannon announced in May 2007 that he was considering doing a review of the Crown corporation for the first time in eleven years.

“We think the public should have an opportunity to discuss this fundamental change before Parliament proceeds,” said Bourque.

 

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