Government Operations Committee on Sept. 26th, 2016

[Réal Couture]

It has to do with the tracking, especially with parcels. If you ask Canada Post where your parcel is, the answer can vary greatly. They may say that they are going to find out, which is like telling you that they have no idea. It is not the beginning of the process that is complicated, it is the end. The beginning of the process is very well done. All you have to do is call and someone comes to pick up the parcels. The electronic operations all go very well. The service is comparable to others and is cost-effective. It goes off the rails later, towards the end of the process.

[Jacques Gourde, Conservative, Lévis—Lotbinière, QC]

Are there any figures showing the use of Canada Post compared to private companies, or does Canada Post still have the largest share of the business market?

[Réal Couture]

I really have no idea.

[Jacques Gourde, Conservative, Lévis—Lotbinière, QC]

You do not feel the effects of the competition either? People who do business with Canada Post would like to have quicker services, but they still remain quite loyal to it.

[Réal Couture]

I think you're right. Everyone who replied does business with Canada Post. Most people do business with Canada Post. No one told us that they prefer another company. If someone did, it is one person out of 80. You don't sense any lack of comfort with Canada Post's services.

[Jacques Gourde, Conservative, Lévis—Lotbinière, QC]

For the delivery of heavier parcels, there is Purolator, of course, which belongs to Canada Post. Are the members of your Chamber of Commerce satisfied with those deliveries? I am talking about parcels of 5 kg and more.

[Réal Couture]

There were no comments about that. No one mentioned problems with weight or with the complexity of the process.

[Jacques Gourde, Conservative, Lévis—Lotbinière, QC]

Thank you, Mr. Couture. That will be all.

[The Chair, Conservative, Tom Lukiwski]

Ms. Trudel, you have the floor, for seven minutes.

[Karine Trudel, NDP, Jonquière, QC]

Thank you, Mr. Chair. My thanks to the witnesses for their presentations.

I enjoyed hearing the Chamber of Commerce's point of view. We heard how important it is for business people to receive their mail, especially in the summer with the threat of a postal dispute. You mentioned your members who have mailboxes already. We have also been told, certainly in media reports—and you can correct me if I'm wrong—that mail service is important for SMEs. They use it a lot to send documents, legal documents or official contracts, for example, that may need a signature.

You are nodding. That means yes, it is so, you do still mail letters.

[Réal Couture]

Yes, that is so. However, I would not say that it is one of the only ways.

More often than not—and this is confirmed in the surveys—people are no longer getting bills at home. That’s so in my case. We get them by email and we print them ourselves. It saves a stamp. We have to use a sheet of paper, but that is not a big deal. We still pay some bills by mail, but there are fewer and fewer of them.

So what Canada Post has left are the circulars, the flyers, as most people call them, important documents that have to be signed, and cheques. However, even cheques are not delivered by mail anymore. They are often deposited directly. I work in a big accounting firm and, with Canada Post, we have the proof that the document was delivered. That's right, Canada Post. The item has to be delivered quite quickly but there is no need to do so the same day. If we really want it to be delivered the same day, we will call a taxi if we have to. The fact remains that Canada Post provides the proof that the document has been delivered.

[Karine Trudel, NDP, Jonquière, QC]

Thank you.

My question goes to Mr. Alacchi.

I liked the opportunity to have the discussion with you earlier and to hear what you had to say about commerce. Someone talked to us about e-commerce. We heard from some witnesses this morning. Could you tell us more about the repercussions on your company? In the task force's report that we received last week, it mentions increasing parcel rates.

Could you explain the impact that can have on your company in general; also, could you talk to us in more detail—your presentation was a short one—about the Universal Postal Union, the UPU? How can it help a company like yours?

[Andréa Alacchi]

Certainly, when Canada Post puts up parcel rates, they do not go up for Canadians only. Foreigners have to follow the rules established by the Universal Postal Union. So that puts Canadians at an even greater disadvantage and adversely affects our efficiency. For some time, we were even sending our Canadian parcels to the United States so that they could be sent back to Canada. For example, if my neighbour ordered something from us, we would take the parcel and send it to the United States, where the US Postal Service would deliver it because it was cheaper. The value of the Canadian dollar has changed. It is lower than it was a year or two ago. That means it is less expensive now to send a parcel from Canada. However the difference is not that great. If the Canadian dollar strengthens a little once more, it will basically be cheaper to send a package to Vancouver via New York. Likewise, just like with my neighbour in the old days, it was easier to send something to Mr. Limoges, for example, through the American mail than through Canada Post. So price increases hurt.

[Karine Trudel, NDP, Jonquière, QC]

They have a significant impact on a company like yours.

[Andréa Alacchi]

Absolutely.

[Karine Trudel, NDP, Jonquière, QC]

I would also like to hear what you have to say about Canada Post having to adapt. Given the nature of your business, you do a lot of deliveries, and in your opinion, Canada Post should adapt.

Could you give the committee some specifics about that? In your opinion, what could help your company?

[Andréa Alacchi]

The most important thing would be to reduce the large cost variations between local parcels and those sent to the far ends of our country so that we could compete better with parcels coming from outside. I have the American model in mind, I think about what the Americans have done with their postal services in the last 15 years and all the stages they have gone through. They provide flat-rate boxes and all kinds of services tailored specifically to companies, like e-commerce. They even have a special box for shoes.

I would like to see that kind of adaptation happening in Canada. I think we can adapt parcel delivery to better represent the retail sector of the future. That’s what I would like to see happening.

As for knowing how to afford a service like that, as I said, there is certainly a paradox. You can help the economy by subsidizing the costs of a project. As we know, if you want a bridge built, you have to pay for it.

We pay for the highway, but if we don't have the highway we don't have the mine that is going to deliver the goods. If we don't have the postal highway, we don't have e-commerce.

[Karine Trudel, NDP, Jonquière, QC]

I am now going to turn to Mr. Couture or Mr. Frechette.

We often receive direct advertising because Canada Post reaches every household. Do the businesses that belong to your organization use that method to get their product known? Have they told you about the importance of door-to-door advertising in every household?

[Christian Fréchette]

Actually, I am glad that you asked that question because we have been talking for a while about things that are done less well. However, we can mention one thing that Canada Post does well. The corporation has great marketing intelligence. We take the opportunity to use its services every day, and we have access to a gold mine of information. Some companies use it effectively.

We need to talk about that more and make sure that every business is aware that the service is provided. We need a major awareness campaign about it. If they want to make up a part of the losses they have accumulated, they have a huge cash cow there in terms of admail.

[The Chair, Conservative, Tom Lukiwski]

Seven minutes, please.

[Yasmin Ratansi, Liberal, Don Valley East, ON]

Thank you all for being here. I have a few questions and I'll be quick.

When you did your survey for the businesses, Monsieur Couture, the businesses generally told you that they were satisfied with the service they received from Canada Post. Is that correct?

[Réal Couture]

That's correct.

[Yasmin Ratansi, Liberal, Don Valley East, ON]

You also mentioned that you use Canada Post to ensure that your documents are delivered, so this is a safe and a secure environment, the brand of Canada Post is a good brand. Is that correct?

[Réal Couture]

That's correct.

[Yasmin Ratansi, Liberal, Don Valley East, ON]

You're an accountant, I'm an accountant. As a business owner and a person who runs an accounting firm, have you had any discussions with Canada Post about its role moving forward, or how we can survive? I ask that because you and I know that if it is not financially sustainable, we are in trouble. We do not want to create deficits. We do not want to subsidize Canada Post, as the U.S. does, and I'll come back to you on the universal strategies that they have adopted.

Have you had any discussions? We are looking for ideas from people. Where would you see it going? Moving forward, where would you like to see it, because it cannot afford to operate the way it does now.