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• URBAN UNIT • RURAL AND SUBURBAN UNIT • PRIVATE SECTOR UNITS<br />

Deregulation of Canada Post would result <strong>in</strong><br />

higher prices, reduced service or both<br />

July 24, 2008<br />

The federal government <strong>is</strong> conduct<strong>in</strong>g a<br />

review of our public post office called the<br />

Canada Post Corporation Strategic<br />

Review (CPCSR). The CPCSR <strong>is</strong><br />

consider<strong>in</strong>g deregulation of our universal<br />

public postal system. <strong>Th<strong>is</strong></strong> <strong>is</strong> the second <strong>in</strong><br />

a series of five bullet<strong>in</strong>s on good reasons<br />

to oppose deregulation of Canada Post.<br />

Deregulation would result <strong>in</strong> higher<br />

prices, reduced service or both.<br />

sector found that “there have been no<br />

significant benefits from liberal<strong>is</strong>ation for<br />

smaller bus<strong>in</strong>esses and domestic<br />

consumers.”<br />

What can you do to oppose<br />

deregulation<br />

Sign a Hey Harper – Hands off my post<br />

office postcard. Your local <strong>is</strong> d<strong>is</strong>tribut<strong>in</strong>g<br />

the postcards. Ask for one.<br />

There appears to be a correlation between<br />

countries that have fully deregulated their<br />

post offices and higher standard postage<br />

rates. See the chart on the back of th<strong>is</strong><br />

bullet<strong>in</strong>.<br />

Why <strong>is</strong> th<strong>is</strong> Once a domestic letter<br />

market <strong>is</strong> fully deregulated, competitors<br />

typically focus on profitable urban areas<br />

and bus<strong>in</strong>ess mail, leav<strong>in</strong>g unprofitable<br />

rural delivery and <strong>in</strong>dividual mail to a<br />

post office. The post office normally loses<br />

part of the lucrative letter bus<strong>in</strong>ess to<br />

competitors. At some po<strong>in</strong>t, the post<br />

office can no longer cross subsidize and<br />

f<strong>in</strong>ance high cost <strong>in</strong>dividual mail and rural<br />

delivery with the money it makes from<br />

large volume urban mail<strong>in</strong>gs because<br />

competitors have taken th<strong>is</strong> bus<strong>in</strong>ess.<br />

In addition to rate hikes, the public would<br />

likely face service cuts if Canada Post <strong>is</strong><br />

deregulated. If our post office follows the<br />

example of Sweden’s deregulated post<br />

office, it would cut back or elim<strong>in</strong>ate<br />

retail service, especially <strong>in</strong> rural areas.<br />

Solidarity,<br />

Den<strong>is</strong> Lemel<strong>in</strong><br />

National President<br />

2008-2011 / Bullet<strong>in</strong> no.040<br />

DL/ bk cope 225<br />

Recently, an <strong>in</strong>dependent review of the<br />

United K<strong>in</strong>gdom’s deregulated postal


Bullet<strong>in</strong> no. 040 2<br />

July 24, 2008<br />

Standard or First Class Letter Rates <strong>in</strong> 11 Countries<br />

2008<br />

Domestic<br />

Rate<br />

Currency<br />

20 g rate<br />

<strong>in</strong><br />

CAD$<br />

Fully Liberalized<br />

Domestic Market<br />

F<strong>in</strong>land 0.70 eur $1.08 Yes<br />

Italy 0.60 eur $0.94 No<br />

Sweden 5.50 sek $0.92 Yes<br />

Austria 0.55 eur $0.86 No<br />

France 0.55 eur $ 0.86 No<br />

Germany 0.55 eur $ 0.86 Yes<br />

New<br />

Zealand 0.50 nzd $0.39 Yes<br />

Japan 80.0 yen $0.77 No<br />

United<br />

K<strong>in</strong>gdom 0.36 gbp $ 0.71 Yes<br />

Canada 0.52 cad $0.52 No<br />

United<br />

States* 0.42 usd $0.42 No<br />

Sources: Universal Currency Converter, 5/25/08; Postage rates worldwide,<br />

http://www.atms.ch/rates; United Nations: World Population Prospects 2006

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