Many reasons to oppose postal deregulation

The federal government is conducting a review of our public post office called the Canada Post Corporation Strategic Review. The government has given the review’s advisory panel a very broad mandate. It has ruled out privatization, but not deregulation of Canada Post. There are many good reasons to oppose deregulation.

This is the first in a series of five bulletins with five good reasons.

 

Reason number one - Deregulation would jeopardize universal postal service

Our public post office provides universal and affordable service. This is no small feat in a country like ours. Canada has the second largest landmass in the world and one of the smallest population densities.

It is the post office’s exclusive privilege or monopoly on letters that allows it to generate enough revenue to provide universal postal service.

When Canada Post was granted the exclusive privilege to deliver letters in 1981, legislators understood that market forces alone could not guarantee a reasonable level of service at affordable prices to all Canadians, especially those living in rural or remote areas. At that time it was estimated that the cost of servicing rural and isolated areas was ‘six to ten times’ the existing postage rate of a first class letter.

If the government decides to deregulate our post office by reducing or eliminating the exclusive privilege, it will have to dramatically reduce service or find another way of funding universal service. Of course, government subsidies are highly unlikely in this day and age.

Many postal observers believe deregulation would lead to a downward spiral for Canada Post, as private sector competitors focus on profitable areas and services, leaving the unprofitable parts to our public post office.

With fewer profits, Canada Post would find it increasingly difficult – and eventually impossible - to provide public postal service, especially in rural and remote parts of the county.

 

What can you do to preserve universal service?

Say no to deregulation and yes to preserving and improving our universal, public postal service. To start, you can sign a Hey Harper – Hands off my post office postcard. Your local is distributing the postcards. Ask for one.