Evidence of meeting #15 for Finance in the 40th Parliament, 3rd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was part.
A recording is available from Parliament.
Conservative
Bernard Généreux Conservative Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
If it were billions of employees that would be nice.
If I am not mistaken, the United States and many European countries already allow competition in their remailing market. This isn't something new in Canada. In any event, Canada has also been doing it for 20 years.
Director, Portfolio Management, Crown Corporation Governance - ADC, Department of Transport
Oui, c'est cela. It's been legal in the United States for many years.
I'm not sure if it's throughout the European Union, but it is predominant in the European Union. Many of the remail companies operating in Canada are in fact offshoots of European postal administrations.
Conservative
Conservative
Liberal
Bonnie Crombie Liberal Mississauga—Streetsville, ON
Thank you very much.
I'd like to welcome the witnesses. I'm sorry I missed your testimony.
My largest issue is the underhanded way that part 15 was included in a omnibus bill. I think it deserves to be debated on its own merit. It reflects a very profound policy shift, one that could potentially open the door to deregulation in other crown corporations.
I wonder if you might want to address that, please.
Director, Portfolio Management, Crown Corporation Governance - ADC, Department of Transport
I don't really think I'm in a position to answer your question. I'm sorry.
Liberal
Bonnie Crombie Liberal Mississauga—Streetsville, ON
Did you or anyone in your department provide policy advice to the minister on whether or not this should merit its own discussion?
Conservative
Ted Menzies Conservative Macleod, AB
These people are here to provide background information, not to provide a policy debate for you.
Liberal
Conservative
The Chair Conservative James Rajotte
They're here just for background, Ms. Crombie; they can't....
In terms of policy, we could bring the minister forward, where obviously we'll have political...but these officials are here for background information for members.
Liberal
Bonnie Crombie Liberal Mississauga—Streetsville, ON
Okay. Well, let's continue.
For me, part 15 certainly is a large step toward removing the exclusive privilege of Canada Post, and for me, in any case, it reflects a profound policy shift.
I'm concerned because of the way our crown corporations are structured; they're here to provide universal, affordable, and accessible access for all Canadians. In your opinion, what effect might opening up exclusive privilege Canada Post business to international remailers have on Canada Post?
Director, Portfolio Management, Crown Corporation Governance - ADC, Department of Transport
Canada Post has recently estimated that the revenue risk is between $40 million and $80 million on a revenue base of $7.3 billion. These companies have been in operation in Canada for over 20 years. The provision in Bill C-9, as in the previous Bill C-14 and Bill C-44, does not change Canada Post's powers or its mandate, which is to offer a universal postal service in a financially self-sustaining manner. We don't expect a significant impact.
Liberal
Bonnie Crombie Liberal Mississauga—Streetsville, ON
In my opinion, there is a profound power shift, and it does expose Canada Post, and it does alter their exclusive privilege. I would think--this is my opinion, at least--that the $40 million to $80 million remailer industry that you've described represents revenues that should be attributed to Canada Post. How would they otherwise make up this revenue fall? And will they be seeking to enter that business?
Director, Portfolio Management, Crown Corporation Governance - ADC, Department of Transport
Canada Post has been active in outbound international mail for many years. It will continue to compete in the industry, despite any change that may be made to its exclusive privilege. This simply clarifies the legal standing of the outbound international mail industry, which, as I say, has been active in the country for over 20 years. Canada Post has been competing through that time.
Liberal
Bonnie Crombie Liberal Mississauga—Streetsville, ON
But doesn't it in fact completely disregard an upper court decision in Ontario?
Director, Portfolio Management, Crown Corporation Governance - ADC, Department of Transport
The Ontario Superior Court of Justice commercial list had given an injunction against G3 Worldwide Canada, also known as Spring, or Spring Canada, but that court put a stay on that injunction. That stay has been renewed a couple of times, and it is now active until December 31, 2010.
Liberal
Bonnie Crombie Liberal Mississauga—Streetsville, ON
It's very much my opinion that this opens the door to deregulation and perhaps privatization, which may be the agenda in any case.
Could you tell us if you think there could be an impact on rural or remote delivery of Canada Post?
Director, Portfolio Management, Crown Corporation Governance - ADC, Department of Transport
I would not expect so. It is a fairly small potential impact on Canada Post revenue, and also the government issued a Canadian postal service charter in September 2009 that laid out expectations for Canada Post service. It specifically noted that rural postal services are an integral part of the universal service obligation of Canada Post. The service charter also continued indefinitely and without any change the moratorium on the closure of rural post offices.
Liberal
Bonnie Crombie Liberal Mississauga—Streetsville, ON
I would suggest to you that the charter is toothless. Otherwise, I think it would be entrenched in regulation rather than just be a charter.
I'm wondering if you think this deregulation opens the door to possible further deregulation or privatization, whether in Canada Post or in other crown corporations.
Director, Portfolio Management, Crown Corporation Governance - ADC, Department of Transport
This is a minor change to Canada Post's exclusive privilege that will essentially legalize an industry that has been active in Canada for 20 years.
Liberal
Bonnie Crombie Liberal Mississauga—Streetsville, ON
I think you will find that the stakeholders believe that this is a very profound change, not a very minor change, to the exclusive privilege of Canada Post.
Conservative
Robert Carrier Bloc Alfred-Pellan, QC
Thank you, Mr. Chair.
Ms. Moynihan, you said earlier that the Canada Post Corporation is expecting to lose between $40 and $80 million in revenue as a result of this legislation. However, I don't recall whether you specified that this is net revenue or gross revenue.
In other words, would the revenue that is lost ultimately produce a profit, or would it fall under unprofitable operations? I think it is important to know that in order to evaluate the bill.