Status quo not option for Canada Post

Canadians have shown they are deeply attached to home delivery of their mail. Canada Post’s plan to phase out door-todoor service across the country and install community mailboxes was put on hold after the Liberal government was elected last fall, but the issue is heating up again, as public hearings kick off on the future of mail delivery in Canada.

The parliamentary committee of MPs that is conducting the consultation with Canadians begins its work Monday in Montreal and continues through November with the aim of producing a report by the end of the year.

A federal task force appointed by the new government issued a report earlier this month that set the stage for the discussions. Ideas range from pushing forward with plans to stop home delivery to putting Canada Post in charge of distributing medicinal marijuana or its getting into banking.

The panel says that Canada Post would save $400 million by continuing the shift to community mailboxes. Moving to alternateday delivery would save $74 million. Another possibility would be to charge an annual fee of up to $124 for home delivery.

The price of stamps could be increased. Or perhaps the price of mailing a letter would reflect the distance it is travelling, much like a parcel. Another $177 million could be gained by privatizing the 800 busiest postal outlets.

All the solutions so far proposed would require a radical makeover of the post office’s mandate or result in higher costs and less service for users — especially the most vulnerable ones who rely on it most.

The fundamental challenge is how to make Canada Post self-financing, as it is intended to be. The Crown corporation has lost money in three of the last five years, but the future looks even grimmer: projections predict losses reaching $700 million a decade from now.

Its core business — delivering letters — has been declining as more people communicate via email and text message. But other revenue sources like carrying fliers and packages have not made up the difference. The Crown corporation is also concerned about its capacity to meet $8-billion in pension obligations.

So Canadians have to ask themselves some hard questions, including: How much are they clinging to home mail delivery out of nostalgia, rather than necessity? How much are they willing to pay to continue to receive greeting cards and bills at their front door? How can the needs of the infirm and elderly be accommodated?

Maintaining the status quo isn’t an option.