Canada Post; Private-Sector Interference

In May 2001, government-owned Canada Post acquired 50 per cent of Montreal’s Intelcom Courier for $1 million. This company offers same-day courier service to businesses and individuals.

Canada Post is now planning to increase its presence and establish same-day courier services in cities across Canada. John Caines, a company spokesman, recently told the media that the expansion of the Crown corporation into same-day courier service is “where we’re going,” and they do not plan to back down from this strategy.

In fact, Canada Post will be approaching other privately owned courier services to find out if there is any interest in selling all or part their companies.

But the federal government, in the guise of Canada Post, should not be increasing its same-day courier service to Canadian consumers. There are already privately-owned courier companies such as United Parcel Service (UPS) and Federal Express that could do the job in a cost-effective and efficient manner.

As it stands, however, privately owned courier companies are unable to properly compete in the marketplace because it is being skewed in Canada Post’s favour.

For example, UPS is suing Canada Post before a NAFTA tribunal, charging that the Crown corporation is using revenues from its powerful letter mail service to cross-subsidize its courier service, Purolator.

There is no legitimate reason for Canada Post to be involved in same-day courier service and this service should be left to the private sector before the Crown corporation attempts to create a stranglehold on the industry.

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