Government Operations Committee on Oct. 31st, 2016

[Bill Mackrell]

No, you pay slightly less. Bulk postage is getting adjusted in the next rate change. Bulk stamp purchases would be 85¢ as opposed to the $1, and metered mail is going to 82¢. It's a 3¢ differential from a roll of stamps. It was 10¢ at one point. We believe there should be a more significant difference between a roll of stamps and metered mail. The cost benefit to Canada Post is enormous.

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

How much would that be?

[Bill Mackrell]

I can say confidently that it probably costs money. Canada Post probably loses money with every stamp and they make a sizeable profit on metered mail and indicia mail.

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

How much do you pay Canada Post for the metered mail?

[Bill Mackrell]

We don't pay Canada Post for metered mail. We collect the funds for them from the clients.

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

Is that revenue for Canada Post or for you guys?

[Bill Mackrell]

We make our money through renting postage meters, the devices that process the mail. They seal the envelopes, fold and insert the contents, evidence the mail, and when they get to the end user, they will fill the meter up with $500 in postage. Overnight, we send that $500 to Canada Post. We really take care of all the billing and collecting the difference between the meter and the stamps. You don't have to manufacture a stamp. You don't have to distribute a stamp. You don't have security—

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

Okay, not a problem. I'm sure I'm going to get told my time is up.

In the 96 years that you've been in operation, you seem to be always on the cusp of innovation. Has it been a reality or have you had some ups and downs?

If I look at Canada Post, it's in the same integrated solution. It has Purolator, and it has SCI, and it does provide integrated solutions. However, you have taken it a step further. You said create, produce, distribute, and manage.

What is missing in Canada Post? It's the same CEO who has moved to Canada Post, so I would have thought that some creativity, some thinking outside the box should come along, but we're being told they lack vision. What's going on?

[Bill Mackrell]

I wouldn't share that comment of lacking vision. I think Canada Post has come a long way in recent years.

Pitney Bowes...to your point, we have actually reinvented ourselves several times in those decades. We're getting ready to enter into our second century, and we're reinventing ourselves as I speak.

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

Do you have any words of wisdom for Canada Post?

[Bill Mackrell]

Reinvent yourself.

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

How? If somebody can't think outside the box, what would you tell them?

[A voice]

Change boxes.

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

Change boxes.

Time's up, I guess.

[The Chair, Conservative, Tom Lukiwski]

We'll go with that.

Gentlemen, thank you very much for appearing here today. Your testimony has been excellent and very well received.

To committee members, a reminder before we adjourn. We are on at 12:30 p.m. tomorrow, but the agenda has changed. We'll be talking about drafting instructions tomorrow, rather than having the minister with us.

I'll go over the schedule for the rest of the week when we meet tomorrow in room 253-D, I believe, at 12:30 p.m.

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

Are we having witnesses tomorrow or just drafting instructions?

[The Chair, Conservative, Tom Lukiwski]

Drafting instructions. We'll have a discussion.

Gentlemen, you're excused. Thank you very much.

The meeting is adjourned.