Letter to the editor of the National Post - Re: Sean Silcoff's "Privatization a good thing? Absolut-ly"

National Post
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Dear Editor:

In Privatization a good thing? Absolut-ly, Sean Silcoff says, “The reason state-owned enterprises have sub-par earnings is that they often make decisions motivated by politics rather than business reasons.” Absolute rubbish. While Crown corporations like Canada Post have both public and commercial activities, they are distinct from commercial enterprises in that they are designed to serve the public interest, not just maximize profits from quarter to quarter. Decisions are motivated by the public interest rather than business reasons. This is a good thing.  And by the way, there’s nothing wrong with Canada Post’s earnings.  Eleven straight years of profits is not too shabby by any standards.

Sicloff’s example of CN Railway privatization as a success story is misleading for anyone concerned with public needs. CN’s privatization was a train wreck, literally. Though his example was on the mark given Canada Post President Moya Greene was involved. Canadian Union of Postal Workers (CUPW) raise concerns today the same way BC Rail employees raised concerns about the safety standards of their private suitor in 2004. As a strict commercial entity, CN used fewer track maintainers, infrastructure inspectors, regular track patrols and longer trains to maximize profits. Then came a raft of toxic train wrecks in the BC interior. CUPW thinks plans to privatize Canada Post would be another train wreck, no matter who’s at the helm.

Yours truly,

Deborah Bourque
National President