Thank you very much.
Good afternoon, Mr. Chair and members of the committee.
Thank you for inviting Canada Post to appear today.
My name is Carrie Chisholm. I am the vice-president of product management and customer experience at Canada Post. I’m pleased to participate in today’s discussion on Bill C‑15 and the government’s additional repayable funding as it relates to Canada Post. I look forward to answering the members’ questions.
First, I'd like to share that I am very pleased with the government's new proposal to amend Bill C-15 to include language that protects free material for people who are blind or partially sighted, as well as reduced rates for eligible library materials. I would like to reaffirm that Canada Post had no plans to change these services. These are long-standing commitments that we will continue to honour, and we are very proud to do so.
Today, I'm here to focus on the provision in the bill, should it pass, that provides Canada Post with greater flexibility on the ability to update its established, regulated letter mail rate-setting process. This would only apply to regulated letter mail items and does not include parcels or our direct marketing services. It is a change that we have long advocated for and that would help us address our substantial financial challenges.
Over the last 20 years, the mail industry has completely transformed. In 2006, we delivered almost 5.5 billion letters. Today, we deliver half that volume. Meanwhile, the number of addresses we deliver to continues to grow. The result is that the revenue we earn from mail no longer covers the cost to deliver it, which has significantly compounded our financial issues.
Since 2018, Canada Post has incurred more than $5.5 billion in operating losses. Last year, we required an initial $1-billion cash injection from the government simply to stay afloat. However, the funding was insufficient, largely due to ongoing labour uncertainty throughout 2025 and its impact on our revenue. Earlier this month, the government informed Canada Post that additional repayable funding up to $1.01 billion would be made available to ensure the corporation can maintain its solvency and continue to serve Canadians with the reliable postal service they depend on.
We recognize the severity of our financial situation. Despite these challenges, the problems facing Canada Post are fixable. Having reached tentative agreements with our largest union in December, and thanks to the government's decision to lift some regulatory and policy barriers, we can start to turn a corner. Amending the letter mail pricing process can play a key role in this turnaround.
As proposed in Bill C-15, greater flexibility in the letter mail pricing process would enable us to align our mail business with the modern needs of Canadians. This would mean that the service of delivering letters could better cover its own costs and reduce the need for taxpayer support. In addition, a more streamlined process would significantly cut red tape.
For example, today it takes up to nine months to adjust pricing. It's a cumbersome process that exacts a heavy administrative toll on multiple government departments, decision-makers and agencies. These are all reasons that changing this process was amongst the list of recommendations in the Industrial Inquiry Commission report. It's also why we've included it in our transformation plan, which is currently under review by the government.
We welcome parameters when it comes to changing the pricing process, and we fully support checks and balances. We know Canadians and Canadian businesses are facing rising costs. We recognize that prices must be fair and continue to provide good value, so we are looking forward to working with the government to create a clear process that would ensure transparency, proper notifications to all stakeholders and evidence-based justification for any increases.
In closing, as you know, Canada Post has a dual mandate to deliver to all Canadian addresses while remaining financially self-sustainable. Every change we are making is about getting back to this mandate and ensuring that postal service remains accessible and affordable for everyone.
Thank you again to the committee. I would be pleased to take your questions.
