MP says – Fix Canada Post before raising prices

A proposed one-cent increase in the price of stamps for domestic mail is a “cash grab” by Canada Post that the government should halt because of spending problems at the Crown corporation, Conservative MP Brian Pallister said yesterday.

Canada Post should first demonstrate it has fixed internal management deficiencies uncovered this year in an audit by Deloitte Touche, including $35m in untendered contracts awarded to Liberal-friendly companies, Mr. Pallister said. The stamp price hike, which will raise the price of a letter stamp for domestic mail to 50 cents – is scheduled for approval by the Treasury Board next
week, Mr. Pallister said.

Canada Post announced the price increases last June, to take effect Jan. 17. The cost of stamps for letters, cards and postcards to the United States will also rise by 5 cents to 85 cents. Stamps for letters, cards and postcards to other destinations abroad will rise by 5 cents to $1.45.