Evidence of meeting #125 for Government Operations and Estimates in the 42nd Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was terms.
A recording is available from Parliament.
Liberal
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
Yes. I'm actually very interested in exploring that. We were talking earlier with another member about the financial services that Canada Post currently provides, and about being open to new conversations about related services. This committee spoke quite clearly about sticking to core competencies. There are certain financial services that are, I would say, core competencies of Canada Post, and I think we need to be open-minded about related services.
Liberal
The Vice-Chair Liberal Yasmin Ratansi
Thank you.
Are you sharing your time, Mr. McCauley, or are you going for the five minutes?
Conservative
Kelly McCauley Conservative Edmonton West, AB
I'll go for the five minutes.
I want to start by asking Mr. Drouin to do up his tie.
Conservative
Kelly McCauley Conservative Edmonton West, AB
Ms. McDonald, as we delve into this more, I realize that there are a lot of board positions, and we have to bring a CEO on, so it's difficult for you to perhaps provide clear answers on a lot of items. You talked a lot about the path forward, or the plan going forward. Obviously, you've seen the task force plan. You've seen our dissenting report and the government's report. You have to come up with a new plan coming forward, including the new mandate from PSPC.
I know you've only been in the role for a couple of months, but how far along are you on at least building a framework for the plan? I realize we have to hire a new president. We have to figure out the board as well. How far along are you, and when do you think we'll actually have a good plan that you can present to the committee, to the public? You've talked a lot about having a bit more breathing room, which is fine. I'm wondering how long you think it will be before we can get a real plan put forward saying, “This is how we're going to address the pension issue. This is how we're going to address the future investments we need with new trucks, or tackle the competition, or prepare for Amazon switching over to their own delivery, or to cover the other risks.”
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
I think you raise a really important point here. When we talk about a new path forward, I don't mean to suggest, and also I don't think it's the case, that there is a need to start an entirely new strategic business plan, and planning process even, inside Canada Post. As we were talking about earlier, there's been a very successful strategy under way over the last number of years to capture the parcel business, which has been, as I'm sure you and every member of this committee would know—
Conservative
Kelly McCauley Conservative Edmonton West, AB
Right, but we know as well.... You talked about letter delivery, which is a much higher percentage of profit. I think it's about 70% for mail delivery.
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
It's a higher profit margin.
Conservative
Kelly McCauley Conservative Edmonton West, AB
Parcel is pennies on the dollar. We're seeing a shift in that. It's not enough to say we've captured that. We're capturing a large amount of low-profit business and we're losing a lot of high-profit business. Are we developing a plan, or when will we have a plan to further address this? In two years it could be 50% low-profit parcel and only 30% high-profit door-to-door.
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
I'd like to continue to try to answer your question, and I'd like to go back to the point that I started with, which is that it's not the case that there is a need for a brand new drawing board inside Canada Post.
Conservative
Kelly McCauley Conservative Edmonton West, AB
I'm asking when we're going to get a plan to address some of the changes that we're seeing coming down the road.
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
Yes, and Canada Post is actively delivering on a business strategy that has been successful over the last few years in ensuring a positive financial process.
Conservative
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
In terms of tabling a new plan forward—
Conservative
Kelly McCauley Conservative Edmonton West, AB
Sorry, let me interrupt. There's the big issue with the pensions, the big issue with the change in your business shifting from high-profit door-to-door to low-profit, and the delivery for Amazon, etc. That's going to continue.
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
That's right.
Conservative
Kelly McCauley Conservative Edmonton West, AB
It's not a sustainable path forward to say, well, we've been successful right now. When are we going to see an actual plan put forward to address the pension issue, to address the shift in business? I understand that we need to, and there's an intent to. We have a whole cadre of very qualified people in Canada Post putting forward ideas, which is great, and there will be a new president. When will we actually see a plan presented to either the committee or the public on how we are going to see a sustainable path forward to keep Canada Post on its feet—addressing the pension, addressing the shift in business? When will we see that?
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
Yes—
Conservative
Kelly McCauley Conservative Edmonton West, AB
I realize it's going to have to wait for the new president, but when can we see a plan? One year? Two years? When will we see a plan?
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
Is it okay to proceed?
Conservative
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
I would anticipate that we would table a new plan forward and articulate a plan forward next year. As you say, a CEO—
Conservative
Kelly McCauley Conservative Edmonton West, AB
Okay. That's all I was asking for. It wasn't that difficult. Thanks.
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
You're welcome.
