UNIVERSAL POSTAL SERVICE – BEHIND CLOSED DOORS

As published in The Indo-Canadian Voice
By Ken Mooney
Regional Grievance Officer
CUPW Pacific Region

The future of Canada’s public postal service is currently under review – behind closed doors. Canada Post, which holds the exclusive privilege to deliver first class mail, is currently being reviewed by a panel appointed by Steven Harper’s Conservative government to determine, among other things, whether the scope of our existing postal service continues to meet the needs of Canadians. One of the most prominent of the committee’s considerations is the question of whether our postal service should be deregulated and opened to competition. Given the ramifications of this review, it seems only appropriate that Canada Post’s stakeholders would be involved in the decision-making process and yet the review has been largely conducted behind closed doors. Why hasn’t this review been made public?

Regardless of province, city or town, Canada Post currently provides all Canadians from coast to coast with a universal postal service. The price of a stamp in Dease Lake, B.C. is exactly the same as in Glace Bay, Nova Scotia. In a recent Angus Reid poll, an overwhelming majority of respondents expressed their approval of Canada Post’s uniform postal rates, which are among the most competitive in the world.

Canada Post is able to provide universal postal rates and service because of the profits that are generated from its exclusive privilege to deliver first class letters. Without that exclusive privilege, Canada’s universal postal service would stand to be compromised. If fully deregulated, the service of Canada’s lucrative urban areas might well present an appealing proposition to American-based corporations such as UPS, but what would be the fate of Canada’s rural communities? Without its exclusive privilege, how would Canada Post be able to provide those Canadians who live in rural communities with the same universal postal service?

Canada Post’s 12 straight years of profits are proof of its continued viability as a federal undertaking. However, even partial deregulation could have serious ramifications.

The international experience has shown that deregulation by no means offers a guarantee of cheaper rates or better service. It has also led to huge job losses. In Sweden, deregulation almost immediately led to the doubling of the price of a stamp. Two years ago, the British post office was fully deregulated. The result of that deregulation led to a downward spiral of profits and at least 2,500 post office closures. A 2008 independent review of that deregulation found that “there have been no significant benefits from liberalization for smaller businesses and domestic consumers”.

Are Canadians in favour of deregulation? Is Canada ready for a two-tier postal system? These are questions that need to be brought forward in an open forum so that all Canadians can have their say.

Although it isn’t advertised, submissions may be forwarded by mail to the Canada Post Corporation Strategic Review, 330 Sparks Street, Ottawa, Ontario, K1A 0N5.

(If anyone needs information in Punjabi or Hindi, they can contact Anju Parmar at 604-837-8176.)