MP Guy Lauzon says Canada Post is at a pivotal moment in its history

MP Guy Lauzon writes: Canada Post is at a pivotal moment in its history. The combination of fast internet and smart tablets has shaken the mail business at its very core. Letter mail began to slow down in 2007 and has declined steadily, accounting for only 51% of Canada Post’s revenue. Further, only 200 of Canada Post`s top customers account for 45% of its revenue.

Canadians mailed almost one billion fewer letters in 2012 than they did in 2006. Almost half of Canadian households send only two pieces of mail or less each month. Although the number of pieces of mail delivered to each address is decreasing dramatically each year, the number of addresses to be serviced grows steadily each year. Canada Post is now responsible for 845,000 more addresses than it was in 2007. From 2006 to 2012 letter mail in Canada reduced from 5 billion pieces to 4 billion. Canadians mailed 255 million fewer pieces of mail in 2012 than they did in 2011.

All these reductions have resulted in huge financial losses for Canada Post. In 2011, for the first time in 17 years, Canada Post failed to earn a profit and reported a loss of $327 million before taxes. They expect a substantial financial loss in fiscal year 2013. The Conference Board of Canada projects annual operating deficits of close to $1 billion by 2020.

If Canadians are to have a postal service in the future, Canada Post has to take some major decisions on how to address these issues going forward. After studying the problem and consulting Canadians, the Conference Board of Canada developed some options for Canada Post to consider. They are; converting door to door delivery to community mailboxes, price increases, wage restraints, reduced speed of delivery, alternate day delivery and more replacement of regular post offices with franchised postal outlets.

Canada Post is looking for your feedback on these options and I believe it is important that constituents of Stormont, Dundas and South Glengarry have input, so I urge to do so. Please go to the Canada Post website at www.canadapost.ca, or mail your comments to:

The Future of Canada Post,

2701 Riverside Drive, Suite N0800

Ottawa, On

K1A 0B1