QUESTION PERIOD — Public Services and Procurement
Canada Post
May 8, 2024
Senator Gold, I would like to talk about Canada Post. We learned Monday that the price of a domestic stamp is increasing. This comes as no surprise, considering the bad news we heard a few days ago about its losses.
Senator Gold, how will the government work with Canada Post to secure its long-term viability? The corporation recorded a loss before tax of $748 million in 2023, and projects even larger — and unsustainable — losses in the future if they don’t make changes to align the postal service to today’s needs.
For instance, we know that Canadians received, on average, two letters per week in 2023; it was seven letters back in 2006. Times have changed for sure.
Thank you for your question. As colleagues surely know, Canada Post is a Crown corporation that not only operates at arm’s length from the government, but its operations are also fully funded by the revenue generated by the sale of its products and services, not by taxpayer dollars.
I understand that Canada Post is considering a number of options, and that the government is currently waiting to see a new model emerge from the Crown corporation so that it can boost revenues and save costs.
Thank you for that answer. I appreciate that there is no easy solution to this problem that has been years in the making. Since the act that governs the corporation clearly states that it shall conduct its operations on a self-sustaining financing basis, what are the government’s options to ensure its future operations without public subsidies? As I understand it, the only parliamentary appropriation that Canada Post receives is approximately $22 million per year.
Thank you. As I stated, it’s my understanding that Canada Post is reviewing all of its options, and will be providing the government with a new model for the Crown corporation to both boost revenues and reduce costs. The government is looking forward to receiving that proposal from Canada Post.
