Mr. Chairman, members of the committee, thank you very much for the opportunity to be here today.
My name is Bill Mackrell. I am the president of Pitney Bowes Canada. For those of you who don't know our company, Pitney Bowes supports posts in countries around the world. We've worked closely with Canada Post since 1923. We're often recognized as the inventors of the postage meter. However, we also provide a wide array of software and hardware solutions that support the mailing, shipping, and marketing efforts of many of the same large and small businesses we share with Canada Post. We're also very proud to note that Pitney Bowes currently employs more than 500 Canadians coast to coast.
Pitney Bowes serves more than 100,000 Canadian businesses. The majority are small and medium-sized businesses, but it also includes many of the largest mailers in Canada. We facilitate thousands of domestic and international parcel shipments to Canadians every day. We efficiently and securely collect more than $500 million in annual postage revenue for Canada Post through our postage meters and parcel payment solutions.
We are pleased to see the government spending considerable time understanding the complex and significant issues facing Canada Post and the mailing economy that it supports. On behalf of Pitney Bowes, I would like to add our perspective to this national discussion.
In our written submission to the task force this summer, we outlined a series of issues that we think warrant attention during the review. We discussed the importance of Canada Post: first, focusing on their core business strengths; second, controlling costs while minimizing any impact on services; and third, adhering to pricing models that promote the long-term stability of the business. We would like to reiterate some of those points in light of some of the recommendations outlined in the task force report.
First, we encourage the government to protect the five-day-a-week delivery model. This is critical in order to maintain mail volume and appropriate service options for advertising mailers. The five-day model is an integral part of Canadian business marketing strategies and is a core component of the billing and payment infrastructure for small and large businesses. These businesses rely on having these much-needed funds in the bank as soon as possible. The importance of the five-day model for Canada Post's future should not be understated. It is critical to the economy. It is one of the key differentiators in the parcel space, and is one of the core capabilities Canada Post will need to retain to be able to capitalize on the last-mile opportunities for parcel delivery.
Second, to reduce potential for declining mail volumes, Canada Post needs to assure mailers that their rates will be predictable, stable, and affordable. We are concerned about the impact that significant rate increases would have on the volume of mail and the success of Canadian businesses. Rate structures should be developed with pricing incentives that encourage the design of highly efficient mailings to help the post control costs while encouraging the post's commercial mailers to expand their use of mail.
Third, by developing rates that encourage high-efficiency mail-piece design, Canada Post can gain efficiencies and help from the mailers themselves. We were impressed with the 2014 decision by Canada Post to move in this direction. Technology like postage meters helps simplify the payment process for mailers and makes the collection of revenue and the processing of mail easier for Canada Post. By following the lead of other countries that provide rate incentives for mailers who use technology, we saw a win-win for Canada Post and their customers who are best positioned to maintain or increase mail volumes.
As Canada Post and the task force have mentioned, parcel growth has already taken place, but it is important for Canada Post to maximize its opportunities in this space. Pitney Bowes is pleased to be working with Canada Post to bring new parcel label printing and postage payment technologies to shippers across Canada. These technologies will help make parcel shipping more efficient for Canada Post and our clients.
In addition to the traditional improvements in process and technology, we're excited about the opportunity for growth in parcel volume from cross-border e-commerce. Pitney Bowes recently released our annual global online shopping survey. It noted that Canadians routinely shop internationally for goods not readily available in Canada, but there were complaints about duty, tax, and shipping expenses. Cross-border e-commerce is also helping Canadian businesses grow. We are hopeful that the government will soon change the 30-year-old de minimis policy, which will also help increase the volume of parcels to and from Canada.
In closing, I would like to emphasize the importance of maintaining the five-day delivery model for both Canada Post's existing mail business and its fast-growing parcel business. We ask the committee to ensure that we have a pricing and operations model that ensures predictable, stable, and affordable rates for mailers. We encourage the continued review of cost control and efficiency measures to streamline operations. We encourage the post to reach out to private sector partners for innovative ways to ensure that parcel and mail opportunities are maximized.
Again, we would like to thank the panel and express our admiration and appreciation for the extensive research and analysis that has gone into this already.
I will forward copies of my remarks in both official languages.