Letter to Lawrence Cannon - Re: Rural postal service likely to suffer if exclusive privilege is changed to satisfy international remailers

 

BY PRIORITY COURIER

December 20, 2006                                                    

 

Lawrence Cannon

Minister of Transport, Infrastructure and Communities
Place de Ville, Tower C, 29^th Floor
330 Sparks Street
Ottawa, Ontario, K1A 0N5

 

Dear Mr. Cannon:

 

Re:      Rural postal service likely to suffer if exclusive privilege is changed to satisfy international remailers

 

It has come to my attention that you made the following statement in Parliament on December 13, 2006:

 

“...in terms of the international remailers, I will review the span and the scope of the problem, and we will examine options, legislative options--"

 

I am writing to request additional information on your plan to examine legislative options dealing with the problem faced by international remailers.  The Canadian Union of Postal Workers (CUPW) believes that your government may create huge problems for millions of people, particularly those in rural and remote parts of our country, if you decide to satisfy the concerns of international remailers by removing international letters from Canada Post's exclusive privilege to deliver letters.

 

As you know, Canada Post was provided with an "exclusive privilege" to carry letters in order to finance the corporation's universal service obligation (USO). This obligation is commonly understood to be the provision of regular letter service to everyone, no matter where they live in the country, at a uniform rate. During a debate on the Canada Post Corporation Act in 1980, the Postmaster General of the day was very clear about the role of the exclusive privilege.  He stated that “...the Canada Post Corporation will have the monopoly to transport letters, so as to have a guaranteed source of revenue allowing it to ensure the universality of services.”

 

When members of Parliament voted unanimously in 1981 to establish an "exclusive privilege" which would fund the USO (as part of the Canada Post Corporation Act), they were aware universal service at a uniform rate represented a financial subsidy from urban cities to rural and isolated communities. At that time, it was estimated the cost of servicing rural and isolated areas was “six to ten times” the existing postage rate for a standard letter.

 

I would like to point out that the provision of universal service at a uniform rate is the single most popular aspect of Canada Post.  A 1996 Angus Reid survey found that almost everyone - 91% of respondents - thought universal service at a uniform price was one of the best things about Canada and Canada Post (see attached).

 

CUPW believes the corporation's ability to provide universal service at a uniform rate would be undermined by government moves to address the concerns of remailers by reducing the exclusive privilege.

 

Providing universal service in a large country with a low standard postal rate (among the lowest in the G8) is difficult at the best of times. The union is extremely concerned that a reduction in the exclusive privilege would threaten revenues, and ultimately public postal service and jobs, particularly in rural areas.

 

We hope your review of the situation faced by international remailers includes an impact study of the options you are considering, a public release of this study, as well as a full public debate on any proposals and a parliamentary vote.

 

Our position is that it would be foolhardy to reduce the exclusive privilege without a full and public examination of this issue, including its impact on the USO.  We are quite certain that private sector companies like remailers have no interest in providing universal service. They simply want more of Canada Post's business, but without the universal service obligation.

 

A letter from your office dated July 25, 2006 suggests you understand the problems that would be created by removing international letters from the exclusive privilege. The letter states, “The activities of international remailers cost Canada Post millions of dollars each year and erodes the Corporation's ability to maintain a healthy national

postal service and provide universal service to all Canadians" (see attached). I do not

understand how you could, on the one hand, talk about the importance of the exclusive privilege on July 25, 2006 and then suggest that you are considering legislative changes that would reduce this privilege on December 13, 2006. What happened between July and December?

 

I would appreciate knowing what has occurred and what you intend to do. I would also like to request, for the fifth time, a meeting to discuss this and other issues.  In addition, I would like to know if you have met with international remailers.

 

Thank you for your attention to this matter.

 

Yours truly,

Deborah Bourque
National President

 

c.c.    National Executive Committee

         Regional Executive Committees

         National Union Representatives

         Regional Union Representatives

         Specialists

         All CUPW locals

         Moya Greene, President of Canada Post

         All members of Parliament

         Gilles Duceppe, Leader, Bloc Quebecois

         Stephen Harper, Prime Minister and Leader of the Conservative Party of Canada

         Jack Layton, Leader, New Democratic Party

         Stéphane Dion, Leader, Liberal Party

         Leslie Schous, President, Canadian Postmasters and Assistants Association

         Richard Des Lauriers, President, Union of Postal Communications Employees,

         Public Service Alliance of Canada

         John Gustavson, President, Canadian Marketing Association

         Kathleen Rowe, President, National Association of Major Mail Users

         Catherine Swift, President, Canadian Federation of Independent Business

         John Hinds, Executive Director, Canadian Community Newspaper Association