Canada Post's plan for expanded monopoly denounced by mail association

Today, a coalition of private Canadian and international mail companies is strongly urging the next federal government, once it takes office, to rein in immediately Canada Post which has sought injunctions against a number of private postal providers in a bid to expand its monopoly over international mail delivery and effectively kill thousands of Canadian jobs linked to Canada's thriving $100-million outbound mail industry. It also calls for a parliamentary review of the exclusive privilege provisions of the Canada Post Corporation Act as soon as Parliament gets back to business.

"It is totally unacceptable that, after over 20 years of open and fair competition, Canada Post now says it has a monopoly over outbound mail and is trying to put us out of business," says Gwyneth Howell, spokesperson for the Canadian International Mail Association which represents the interests of a number of private mail companies such as Key Mail Canada and Spring Global Mail, smaller letter shops operating all across the country, as well as some of Canada's biggest printing companies. Clients include small, medium and large Canadian corporations from all across the country.

International mail involves the collection and distribution of letters weighing up to 500 grams destined for delivery outside Canada. Ms. Howell says the association is particularly disappointed with the Canadian courts for adopting Canada Post's new and expansive interpretation of the exclusive privilege provisions in the Canada Post Corporation Act adopted in 1981.

"We've been in business since 1988 yet it wasn't until 2002 that Canada Post went after some of us. And Canada Post had to use a French translation of the legislation because the English version simply does not give it the expanded monopoly powers it was seeking," says Richard Thornton, managing director of Key Mail Canada, adding that the courts have failed to take into account the many years international mail companies have operated in Canada without any concerns ever being raised by Canada Post. Adds Mr. Thornton: "We worked hard to build our business, create jobs and develop a competitive and cost effective value-added service to Canadians. I certainly hope that Parliamentarians will indeed take into account all of these factors."

According to Lou Laforet, president of Spring Global Mail for the Americas, the scope of Canada Post's monopoly has never been squarely addressed by Parliament. "It is high time that this matter receives a thorough and extensive public debate," says Mr. Laforet. "How can Canada Post claim that it has always believed it had exclusive privilege when it specifically acknowledged the legitimacy of international mailers in its 1992-93 Annual Report, hired employees from our company to compete against us and in fact, owned a significant shareholding in our company between 1992-96?"

The association is disappointed by last month's Supreme Court decision to deny Key Mail Canada's leave to appeal application following a recent Ontario Court of Appeal decision upholding Canada Post's contention that it has exclusive privilege over international mail. The association is gravely concerned that this has set the stage for Canada to become one of the few, if not the only, jurisdiction in the world where the government-owned postal service has a monopoly over international as well as domestic letters.

The situation is being watched carefully by Canada's business community. According to Garth Whyte, executive vice president of the Canadian Federation of Independent Businesses: "The United States, Great Britain and France have all removed the international monopoly powers from their postal services; it's disturbing that Canada Post is moving in the opposite direction." Adds Mr. Whyte: "Over the past 10 years Canada Post executives have told us of their desire to work with small businesses. These same executives have also told us that their legislated monopoly powers are necessary to service rural communities. What Canada Post has never told us is their intention to interpret their legislated monopoly powers to shut down twenty-year-old Canadian businesses in order to increase their international market share."

The association notes that Canada Post's actions are completely inconsistent with recent comments made by Moya Greene, President and CEO of Canada Post, who stated last fall that, "Today, the notion of exclusive privilege is a thing of the past."

The association also notes that some companies have already indicated their intention to move their operations to the U.S. once Canada Post starts to act on these rulings. This represents a potential lost of revenue and jobs for the Canadian economy.

Gwyneth Howell, Canadian International Mail Association: [email protected] or (519) 829-8470; Evan Zelikovitz, APCO Worldwide: [email protected] or (613) 565-4242 (x224)

Private-sector operators to seek curbs on Canada Post
National Post, National, Sec. Financial Post, p FP4 01-17-2006

A coalition of private-sector operators in the $100-million
international mail delivery market will ask the next government to
"rein in immediately" the power of Canada Post, which is seeking to
shut down the sector through court injunctions. The group, in a
statement released yesterday, is also calling for Parliament to
conduct a review of the Crown corporation's monopoly powers. The
companies, which handle foreign-bound mail for large organizations,
have lost a series of court battles against Canada Post, whose
lawyers have successfully argued the French-language version of the
Canada Post Corporation Act gives the Crown corporation exclusive
rights in the international mail market. The coalition has one
outside supporter in Garth Whyte, vice-president of the Canadian
Federation of Independent Business. "The United States, Great
Britain and France have all removed the international monopoly
powers from their postal services. It's disturbing that Canada Post
is moving in the opposite direction." Canada Post says the
international mailers are costing taxpayers up to $80-million in
annual revenue.