Tag: Canada

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Canada NewsWire
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Attention News Editors:

MARLEAU OUTLINES PLAN FOR CANADA POST
OTTAWA, April 23 /CNW/ – The Honourable Diane Marleau, Minister

responsible for Canada Post Corporation, today reaffirmed that Canada Post

will not be privatized and introduced a series of measures designed to improve

postal service for all Canadians:

– Service levels and standards will be set for rural Canada, and

standards for both urban and rural Canada will be monitored

independently of Canada Post, with results reported to the Minister;

– Canada Post’s primary focus will be on the delivery of lettermail;

– In order to maintain affordable lettermail, without subsidies, Canada

Post will remain in competitive services. Canada Post will not be

asked to sell its interest in Purolator Courier;

– The price of stamps will not increase this year or next year. In

future, when increases are warranted, they will be less than inflation,

implemented no more than once a year and announced at least six months

in advance; and

– Environmental stickers requesting no unaddressed admail will be

respected.

Madame Marleau also announced measures to improve transparency and

openness:

– A Canada Post Ombudsman will be created, with the authority and

independence to investigate complaints. The Ombudsman will report

directly to the Chair of Canada Post, and will provide a statement for

inclusion in the Corporation’s annual report; and

– Canada Post will have to provide an annual statement from its auditor

on cross-subsidization between its competitive services and its

exclusive privilege business, lettermail.

Minister Marleau noted that more disciplined financial performance will

be expected from Canada Post, thus placing them on a more level playing field

with the private sector. The measures announced today form part of a

multi-year policy and financial framework being established to guide decisions

concerning Canada Post. This framework will be in place for five years, and

will stipulate objectives such as return on equity, dividend policy, service

standards and the basis for future stamp price increases.

Today’s announcement by Minister Marleau completes the review of the

mandate of Canada Post, and is the government’s final response to the report

of the independent review chaired by Mr. George Radwanski, which examined

financial and policy issues essential to the future of the Corporation. Mr.

Radwanski’s report identified key issues of importance to Canadians with

respect to postal services. TD Securities was retained to assess the impact

of the recommendations in this report on Canada Post’s ability to remain

financially self-sustaining. Both of these studies were considered by the

government during its deliberations.

The Minister concluded: “Improved, affordable, universal postal service

for Canadians into the next century is the main goal of our plan for Canada

Post.”

Copies of the Future of Canada Post Corporation (by George Radwanski) and

Summary Report of TD Securities on Canada Post can be obtained by calling

Public Works and Government

Canada Post Corporation welcomes the review of its mandate as an
opportunity to take stock of its progress and to set priorities for the
21st century. CPC approaches the Mandate Review in a spirit of co-operation ­
co-operation with its employees, with its customers, and with its shareholder,
the Government of Canada. Each of these stakeholders has a vital role to play
in ensuring the future of Canada’s universal, affordable postal service.

Since Confederation, the post office has been a cornerstone of Canada’s
national infrastructure ­ supporting and facilitating economic activity and,
equally important, providing a vital channel for Canadians in every region to
communicate with one another. From the beginning, the postal system has
differed from all other communications and distribution media because of its
accessibility to all Canadians. This commitment to universal access, exceptional
within Canada, has been at the heart of the mission of the postal system in the
past, and must continue to be its defining characteristic in the years ahead.

This submission offers an overview of CPC’s development to date, assesses its
current needs and identifies the requirements of Canada’s postal system for
the future. The perspective that it provides is shaped by four fundamental
realities:

* CPC is the sole organization with a track record of offering affordable and
high-quality services to all Canadians, wherever they live or work.

* CPC must make optimal use of the infrastructure that has been paid for by
all postal users by continuing to offer the services that have been available for
almost a century, in addition to those new services that technology permits.

* CPC must earn a commercial rate of return in order to: maintain and
expand its infrastructure as Canada grows; continue to invest in new
technologies and services; and pay its shareholder the dividends to
which Canadians are entitled.

* CPC must undertake fundamental changes in the way in which it collects,
processes and delivers mail in order to generate returns and be competitive.
Changes of this kind will only be possible through constructive collaboration
among CPC, its unions, and the federal government.

Maintaining universal service in a country that confronts the many challenges
presented by Canada’s low population density, great distances and harsh cli-
mate has been a costly enterprise from the beginning. For over a century, the
postal system was run as a department of government. By 1980, it had generated

Summary