Government Operations Committee on Feb. 10th, 2026

[The Chair, Conservative, Kelly McCauley]

Good afternoon.

Welcome to meeting number 26 of the House of Commons Standing Committee on Government Operations and Estimates, widely known, of course, as the mighty OGGO.

We welcome back Minister Lightbound and our regular officials from PSPC. That's for the first hour. Then we'll take a quick break and welcome Mr. Fuhr and Mr. Guzman.

Minister Lightbound, I assume you have an opening statement.

[Joël Lightbound, Liberal, Minister of Government Transformation]

Yes, Mr. Chair. I'll make an opening statement.

[The Chair, Conservative, Kelly McCauley]

You have five minutes, please.

[Joël Lightbound, Liberal, Louis-Hébert, QC]

First, thank you for the invitation to appear before the Standing Committee on Government Operations and Estimates. It's a pleasure to be back, this time to speak to Bill C‑15, Budget 2025 Implementation Act, No. 1.

Budget 2025 comes at a time when the world is undergoing a series of significant changes, and a new global paradigm is emerging. Countries are reassessing their trade relationships and rethinking their supply chains. Investment priorities are changing fast in response to emerging economic and national security concerns.

Under pressure from a more unstable and more dangerous world, Canada must not stand on the sidelines. This is a time to build a stronger, more resilient and more self-sufficient economy for the benefit of all Canadians.

Budget 2025 is a dynamic budget modernizing government, supporting Canadian workers and businesses and making strategic investments that will shape our future prosperity, building a strong, sovereign Canada by spending less to invest more in the people who are building this great country.

Public Services and Procurement Canada plays a central role in this effort. As the government's common service provider, we touch nearly every aspect of federal operations, from the buildings Canadians rely on, to the technology systems that deliver services, to using the powerful lever of public procurement, leveraging billions in public dollars to scale up our strategic economic industries through our new buy Canadian policy. Budget 2025 is going to enable PSPC to drive this transformation.

Most importantly, we are making ourselves our own best customer through our buy Canadian policy. Canadians expect this of us: to prioritize spending to build our domestic manufacturing and innovative businesses, strengthen our supply chains and create good, well-paid jobs for Canadians. This scales up our strategic industries, builds capacity at home and makes us more competitive internationally. This will in turn open new trade opportunities and diversify our trade relationships.

In defence-related procurement, the creation of the Defence Investment Agency is already contributing to moving projects forward more efficiently so that the Canadian Armed Forces receive the equipment they need more quickly while strengthening industrial capacity in the country.

At the same time, we are modernizing decades-old information technology systems across the government and broadening the use of artificial intelligence responsibly to better deliver services while reducing cost and cutting red tape.

Bill C‑15 also proposes significant amendments to the Canada Post Corporation Act that reflects the broader modernization plan.

It's no secret that Canada Post is facing severe financial problems and is going through an essential transformation period. For that, it's essential to ensure that the corporation has the revenue it needs to continue operating and to make the investments needed to continue serving Canadians across the country.

A major obstacle to this is the long and rigid process for modifying postage rates, or in other words, the price of stamps, which cannot be done without Governor in Council approval. This outdated system slows down decisions, creates layers of unnecessary red tape and curtails Canada Post's capacity to respond to financial pressure and economic changes.

The proposed amendments would streamline this process, allowing Canada Post to set postage rates while maintaining appropriate oversight and accountability. These changes follow the recommendations of the industrial inquiry commission, led by Commissioner William Kaplan. They are aimed at supporting the long-term financial sustainability of Canada Post.

I want, however, to be absolutely clear that these administrative changes do not alter long-standing public service commitments. Free postage for materials used by people who are blind will continue, as it has for more than a century, and reduced postal rates for libraries will remain in place. These important services are not being affected in any way, shape or form by Bill C-15.

In closing, budget 2025 reflects a government that understands the need to adapt and lead in a changing world. By modernizing government operations, reducing red tape and making smart generational investments, we're strengthening Canada's economy and ensuring that public institutions remain strong, efficient and responsive to Canadians.

Bill C‑15 is essential to implement our ambitious and necessary plan, and it's a pleasure for me to discuss it with my colleagues here today.

[The Chair, Conservative, Kelly McCauley]

Thank you very much.

We'll start with Mrs. Block for six minutes.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Thank you, Chair.

Thank you, Minister Lightbound, Ms. Reza and Mr. Ieraci, for joining us today to talk about the amendments to the Canada Post Corporation Act—among other things, because we have some other questions for you today.

I know you were here in November, at which time Canada Post, PSPC and you were in conversation about another loan for Canada Post. At the time, you couldn't tell us very much because you were still in conversation. We understood this was not in the supplementary estimates (B), which we were looking at, because the conversations were ongoing.

Earlier—I think it was late last week—it was announced that a decision has been made to approve another loan to Canada Post. How will this funding be authorized?

[Joël Lightbound, Liberal, Louis-Hébert, QC]

I'll start with that, and then turn it over to Mr. Ieraci, who may wish to add to my response.

The funding of slightly over $1 billion allocated to Canada Post is a repayable loan to allow it to continue to provide the essential services that Canadians need.

Now, it's important to note that when we made the announcement about modernizing and transforming Canada Post in September, it was in recognition of the fact that although we had to support the Canada Post Corporation because it was experiencing significant financial challenges, the corporation needs to transform. The fact that the federal government has supported the corporation in such a significant way is not a long-term solution.

Mr. Ieraci, would you like to add more details about this process?

[Lorenzo Ieraci, Assistant Deputy Minister, Policy, Planning and Communications, Department of Public Works and Government Services]

Yes, Minister.

To respond to the question, last week, an order in council was posted that indicates that the Minister of Finance has authorized additional funding for Canada Post. This is required under the Canada Post Corporation Act, and the funding will be included in the supplementary estimates (C) as part of the annual process.

Thank you.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Is it another loan like the previous $1-billion loan? Are the terms of this loan similar to those of the previous $1-billion loan?

[Joël Lightbound, Liberal, Louis-Hébert, QC]

Would you like to answer that, Mr. Ieraci?

[Lorenzo Ieraci]

The answer is yes.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Okay.

Will Canadians ever get repaid for the first $1 billion you approved for Canada Post?

[Joël Lightbound, Liberal, Louis-Hébert, QC]

That's my heartfelt wish. That's why, when I was appointed minister responsible for Canada Post, I didn't take long to act on the recommendations from the Kaplan commission, among others, and to ask Canada Post to come up with a transformation plan.

Canada Post Corporation was profitable for a long time, but for reasons that I have spoken to before this committee last fall, it has not been profitable for at least seven years. However, it's essential that the corporation gets back to a financially sustainable footing. I very much want to see Canada Post return to profitability and continue to fulfill its essential mission for Canada. It is a vital institution for the very fabric of our country.

I'll stop there. I see you have another question, Mrs. Block, so I'll not take all your time.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Thank you. I do.

It is my understanding that you gave Canada Post 45 days to submit a plan to rightsize their operations. It was three months ago that you received that report. You have yet to make any sort of announcement about whether or not that's been approved.

I want to quote the Auditor General from February 9, 2026:

In our 2025 commentary, we also noted that 77% of Crown corporations did not have their corporate plans approved before the start of their fiscal year. This is similar to the rate reported in the 2024 commentary. Delayed approvals can cause operational inefficiencies, project delays or additional costs.

If we look at the fact that Canada Post provided you with the plan you required them to give you three months ago, when are you going to make a decision on that plan?

[Joël Lightbound, Liberal, Louis-Hébert, QC]

First, that's right, we received Canada Post's transformation plan in November. We've had a lot of discussions with Canada Post to gather additional details and to ensure we have all the information we need.

That said, it's clear that when I made the announcement in September, we were going to lift the moratoriums on community mailboxes, rural post offices and service standards, I expected Canada Post to engage with communities that would be impacted, initiate consultations and start preparing for the transformation. That's the message I sent Canada Post and that's the message I'm sending the corporation once again. My understanding is that Canada Post is working on that.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

We know that, between 2019 and 2024, PSPC did not approve Canada Post's strategic plan, so for five years their strategic plan was not approved. We now find ourselves in a situation where in September you provided some—

[The Chair, Conservative, Kelly McCauley]

You have 30 seconds.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

I'll end it there and I'll come back to that.

Thank you.

[The Chair, Conservative, Kelly McCauley]

Thanks.

Madame Rochefort.

[Pauline Rochefort, Liberal, Nipissing—Timiskaming, ON]

Good afternoon, Minister and the entire team.

Minister Lightbound, you mentioned in your opening remarks that these changes are administrative in nature. Can you explain the current process for setting stamp rates and how, to some extent, it creates red tape? This week, we've been discussing the Red Tape Reduction Act, so I'd be interested in your comments on that.

Also, how much do you expect the timeline to be expedited by giving Canada Post authority to set postage rates independently? I think you might have touched on that, but could you confirm it once more?

[Joël Lightbound, Liberal, Louis-Hébert, QC]

Certainly, that's part of the transformation we want for Canada Post Corporation, but it also fits within a broader effort to reduce red tape and the administrative burden.

With regard to Canada Post specifically, it was also one of Commissioner Kaplan's recommendations to ensure Canada Post had a way to increase the price of stamps in keeping with the cost of inflation and delivery costs. This recommendation had, and continues to have, support from unions.

To answer your question, Ms. Rochefort, I would say that right now, the process is such that it has to be published in the Canada Gazette. It must go through the Governor in Council, thus through the cabinet. The process can take three to four months, which is lengthy and time-consuming, and it originates from the wrong side, meaning from the political side. With the current proposal, it would come from Canada Post, which would recommend an increase based on operational needs. It will be presented in its corporate plan and then approved by Treasury Board, but the process will be quicker and start from the right place, at the Canada Post Corporation.

To give you an idea, I would point out that between 2018 and 2023, the price of stamps in Canada increased 7%, while in other comparable jurisdictions, it went up by roughly 55%. This flexibility and agility to increase postage rates based on inflation was not available in Canada. That's what we want to change and improve with Canada Post while ensuring accountability in two ways. First, as I just said, it's going to be in Canada Post's corporate plan and it will be approved by Treasury Board. Second, as minister, I send Canada Post a letter of intent annually so the corporation can align with our priorities. In that letter, I can give Canada Post instructions on our expectations on the price of stamps.

[Pauline Rochefort, Liberal, Nipissing—Timiskaming, ON]

Thank you.

You did mention the matter of maintaining preferential rates and exemptions for libraries and Canadians who are blind. I would just like you to repeat it. In my riding, the issue of libraries has come back, and so to say it once more, loud and clear, would be very helpful.

[Joël Lightbound, Liberal, Louis-Hébert, QC]

Thank you for raising this matter. I'm very pleased to have the opportunity here to clarify the issue once and for all, because it has generated a lot of legitimate concerns because many libraries across the country depend on this program. None of the changes will affect postage rates for libraries or blind people. The program is staying in place.

The preferential rate for libraries has been in place since 1939, with or without legislative protection, and it will continue to exist even with these changes. There are no changes whatsoever. We understand the importance of this program for libraries, especially in smaller communities, where the program provides access to a greater network of libraries at a cost that makes financial sense. That will not change and there will be no change for blind people either. I want to be very clear about that. Canada Post has made that clear, and at Public Services and Procurement Canada, we have also made that clear repeatedly.

With respect to the blind people, and I know that this was not part of your question, but since I have the floor, I'd like to clarify something. Canada is a signatory to an international convention, and the exact name in French escapes me. Perhaps Mr. Ieraci has it but I'll find it later. Be that as it may, Canada is a signatory to this convention. The protection it offers to blind people in terms of Braille materials has been in place since 1898, which is more than 100 years. It was therefore there before there was statutory protection, and that will continue, because we believe it's an important public policy. This is also Canada Post's opinion. There will be no changes. I want to reassure the people in your riding and all Canadians who have expressed concern about this issue.

[Pauline Rochefort, Liberal, Nipissing—Timiskaming, ON]

I just want to conclude with a question related to small and medium-size businesses, particularly in rural and remote communities. I was surprised to learn that they remit over $350 million per year in prepaid postage through postage meters. I learned that metered mail is cheaper to process, improves address accuracy, and helps retain stable high-volume users in the postal network.

Can you explain how giving Canada Post greater flexibility to design targeted pricing, such as for metered mail, helps retain mail volumes, supports rural, small and medium-size businesses, and protects the long-term viability of Canada Post?

[Joël Lightbound, Liberal, Louis-Hébert, QC]

That's an excellent question.

I want to back up briefly to the previous question. I spoke about the Universal Postal Union. Canada has been a member since 1878 and the protection for blind people dates back to 1878. It's been in place for a long time, and it's there to stay.

Back to your last question, it's essential for Canada Post Corporation to have the ability to set the price of stamps based on market needs and volume and to have some predictability for its customers. This is critically important to ensure the corporation has strong volumes and the level of customers or demand it needs.

The change at issue will help the corporation on this front. There is a good reason it was one of Commissioner Kaplan's recommendations. In many ways, it will address a missing element at Canada Post and bring a level of predictability for its customers, for example.