Canada Post not subsidising courier
Contrary to UPS’s assertion in your July 8 article “UPS browned off with Canada Post,” the decision in Europe requiring Deutsche Post to repay some $840 million to the German government for using monopoly profits and state aid to subsidize its commercial courier operation is interesting but has no “significant adverse implications for Canada Post.”
Simply stated, Canada Post does not use its letter-mail network to subsidize its courier business. In fact, the Competition Bureau of Canada has twice thoroughly reviewed the issue and found no evidence to indicate that Canada Post engaged in cross-subsidization, and this is also certified every year by independent auditors.
Competitive services contribute significantly to Canada Post’s revenues and make our universal postal services affordable. If Canada Post did not provide competitive services, stamp prices would have to rise significanTly, and the Government Would Spend Hundreds of Millions of Tax Dollars a year to support the corporation, or Canada could abandon the universal postal system.
Deutsche Post is appealing the decision, but regardless of the ultimate conclusion, Canada Post welcomes the European Commission’s decision, as it endorses the North American test for cross-subsidization used by Canada Post’s auditors and the Canadian Competition Bureau. While Deutsche Post may or may not have satisfied the test, Canada Post does.
John Caines
Media Relations, Canada Post
Ottawa
