A review of Canada Post launched by the Liberal government reports that the crown corporation needs a major overhaul to become financially sustainable, according to a report in this morning’s Globeinvestor; a mission that will take a radical overhaul.
Some of the options offered in the report will not be popular with Canadians, but if Canada Post is going to remain a viable operation the discussion paper released yesterday include charging for home delivery, reducing the number of delivery days and hiking the price of stamps.
And as we all know, the post office’s main challenge is that the Internet and new forms of communication are steadily eroding its core business – delivering letters – while residential areas expand. Every year, it delivers fewer items to more addresses.
Canada Post, under its mandate from the government is required to be financially self sustaining, but has lost money three of the past five years. And with the Trudeau government immediately stopping the spread of community mail boxes upon being elected, the cost of reinstating home delivery for all Canadians would cost $1.2 billion a year.
The task force said that, to do that, the post office would have to charge as much as $124 a year per home or raise stamp prices by another 50 cents on top of the increases it already needs to make.