Government Operations committee  In small urban, suburban, and even in some cases, rural markets.

Government Operations committee  Certainly. We're currently expanding, and we do look at the demographic growth and the urban sprawl, and where populations go. Again, we cater primarily to small businesses in Canada, businesses with zero to five employees. A lot of those exist in rural locations where they don't have full infrastructure.

Government Operations committee  We would welcome the discussions. We haven't had the opportunity to have the discussion, but certainly there is an existing portion of the footprint that would be attractive to us to either co-locate or take over, if that's what Canada Post wanted. What we were looking for is the opportunity to have those discussions and see where the meat on the bone is for both sides.

Government Operations committee  Thank you. We're a retail network offering product, so there is really no cost to Canada Post for making their services available through our locations. We're offering to put more parcels into the stream at a fair cost, in the same way that Staples or anyone else does. Now, that's different from my colleague, from the carrier.

Government Operations committee  It's a franchise. We make a gross commission on transactions. Just like anyone else, if our part of the transaction retails at $10, and if there is a 30%, 40% or 50% reduction on published rates, normally, that is a discount. That is where the profit lies for the franchisee. As a franchisor, we receive our part afterwards.

Government Operations committee  I own the licence for Canada for the franchise network. I have no association with the USPS. I'm not privy to the specific data that goes on in that network. The only thing I know from interacting with my colleagues in the United States, including my counterpart who is the president in the U.S., is that it has been beneficial to both parties, and the program continues to expand.

Government Operations committee  As for the other suppliers, their services are offered at our counters. Being able to have a choice has become a selling point.

Government Operations committee  To clarify, they're not UPS locations. They're the UPS Store which are branded franchisee locations.

Government Operations committee  Currently, a Canadian consumer could walk into those stores and say that they're looking for a service to get a parcel from A to B. Frankly, Canada Post just isn't part of those conversations. We have a very good flow of customers, the same as a Staples does or anyone else that has a multiple selection available.

Government Operations committee  We can't get anywhere on those conversations.

Government Operations committee  No, we've actually tried to have conversations, and we can't really get past the “thank you, but no thank you, not at this time.” We've never really had the opportunity to sit down at a table and explore what the options are that could be mutually beneficial to Canada Post and to our network.

Government Operations committee  Product offerings or service offerings? We have a broader service offering. To my knowledge, at their locations, Canada Post is the only offer that can be done. Staples, for example, offers Purolator and Canada Post. We offer a multitude of different carriers. We are not really talking about exclusivity for anyone.

Government Operations committee  I don't think it's an encroachment. We have category competition all over the place. We don't really have concept competition, in terms of having the services available in one space and the broad spectrum of services. I will tell you that, for example, printing takes several years of study and knowledge, to be able to produce placemats like the ones that are placed in front of you, and to get all that stuff done.

Government Operations committee  No. We've had initial conversations that have basically gone to the tune of, “Thank you, but not at this time.” They've been very brief.

Government Operations committee  We would assume there are opportunities for the enhancement of revenue. Based on the experience with the USPS in the stores in the United States, we believe that proof of concept is certainly a worthy exercise.