Evidence of meeting #5 for Government Operations and Estimates in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was communities.
A recording is available from Parliament.
1:50 p.m.
Conservative
The Chair Conservative Robert Gordon Kitchen
Thank you. I apologize for interrupting.
We'll now go to Ms. Vignola for two and a half minutes.
1:50 p.m.
Bloc
Julie Vignola Bloc Beauport—Limoilou, QC
Thank you very much, Mr. Chair.
Ms. Fortin, Over the past few months, cities and towns have adopted resolutions asking Canada Post to maintain service quality, and many of them were in favour of innovative measures. I am thinking, among other things, of the introduction of an alert program for seniors, for the community hubs you mentioned earlier, and for transitioning to electric vehicles.
I'm going to ask you three rapidfire questions.
Do you intend to run pilot projects on an alert service for seniors?
You implemented two community hub pilot projects. What were the results? Are there other pilot projects like this, and where will they be introduced?
In June 2020, a tender call was issued for an electric vehicle pilot project, but the date has repeatedly been pushed back, and is now set for December 31, 2022. Why was it delayed? Can you guarantee is that it will not be delayed again?
1:50 p.m.
Interim Chief Operating Officer, Canada Post Corporation
Thank you for these questions.
I'll begin by answering the question about community hubs. We don't have the results for you yet because the first hub was opened in November in High Prairie, Alberta. The second, in Membertou, Nova Scotia, will be opening soon in 2020 and will have electric charging stations because there will be some electric vehicles.
As for electric vehicles, I'd like to reiterate that we naturally intend to play a major role in matters like these, which are important for Canadians. The environment is one such matter, and we plan to do much better in this area. Together with our unions, we prepared an environmental action plan in 2021, which will set greenhouse gas emissions targets.
1:50 p.m.
Bloc
Julie Vignola Bloc Beauport—Limoilou, QC
I'm sorry to interrupt you, but I'd like to focus on the call for tenders.
Why is the date being continually pushed back?
Can you assure us that on December 31, there will be no further delays?
1:50 p.m.
Interim Chief Operating Officer, Canada Post Corporation
I don't have precise details for you about the tender call. However, I have some good news, which is that we will be receiving our first electric vehicles this year, some of which will go to Montreal and the others to Vancouver.
1:50 p.m.
Conservative
The Chair Conservative Robert Gordon Kitchen
Thank you very much.
We'll now go to Mr. Johns for two and a half minutes.
1:50 p.m.
NDP
Gord Johns NDP Courtenay—Alberni, BC
Thank you, Mr. Chair.
The PCO poll that we're deeply concerned about reinforced something that we already know about. Rural post offices need to remain open. For many rural residents in Canada, the post office is where they conduct business. I know from my own experience living in Tofino, B.C., that the post office is the anchor for local commerce. I ran the chamber of commerce there. It's part of local rural communities.
We believe that rural post offices could play a much bigger role in communities, which is why we want to expand services, including postal banking. The big banks are abandoning rural communities right now, leaving many without access to banking services despite record profits. By offering banking services through its network of over 6,000 postal outlets, many in rural areas, Canada Post could overnight become the most accessible bank in the country.
I'd like to ask you about the market testing that Canada Post has undertaken related to postal banking. Rural, northern and small communities are in serious need of banking services, as I've outlined. Many of those banks are closing right now. My colleagues in the NDP have raised this many times.
Can you provide the committee with an update as to how many market test sites are currently operating, how Canada Post is informing its clients about banking services that are being implemented, and how you are measuring the success of the market testing? Finally, are plans in place for a national rollout of banking services at Canada Post locations?
1:55 p.m.
Interim Chief Operating Officer, Canada Post Corporation
That was multiple questions, so first of all—
1:55 p.m.
Interim Chief Operating Officer, Canada Post Corporation
Oh, gosh. Okay. I am going to try to be very focused then.
The community hubs are, to us, an expression of our commitment to expanding services in communities. As I've said, one is done and one is close to being done; two are planned, with locations to be determined.
In terms of financial services, we've expanded our financial services with the new personal loan product called “MyMoney Loan”. It's a strategic partnership with TD. In the early stages, customer response has been positive and TD response has been positive. We're quite happy with the test and we are going to be enhancing the financial services we provide, but we do not plan on launching a full postal bank.
1:55 p.m.
Conservative
The Chair Conservative Robert Gordon Kitchen
Thank you, Ms. Fortin. That was excellent. Well done. You brought it right in on the minute. Thank you very much.
We'll now go to Mr. Lobb for five minutes.
1:55 p.m.
Conservative
Ben Lobb Conservative Huron—Bruce, ON
Thanks very much, Mr. Chair.
My first question is on volume. According to your 2019 financial statement, you delivered 7.8 billion packages. I'm just wondering what kind of up time your facilities have consolidated. What was the up time for your facilities?
1:55 p.m.
Interim Chief Operating Officer, Canada Post Corporation
Can you define “up time”?
1:55 p.m.
Conservative
Ben Lobb Conservative Huron—Bruce, ON
I used to work in manufacturing. It was pretty simple. It was the amount of time the plant was open that it actually spent running.
1:55 p.m.
Interim Chief Operating Officer, Canada Post Corporation
Okay. I was thinking, is it maintenance of the equipment or is it the plant?
I would say, particularly at the beginning of the pandemic—
1:55 p.m.
Interim Chief Operating Officer, Canada Post Corporation
In 2019, in normal operations we would typically be operating 24-7, with the exception of one shift we typically don't operate, which is the Saturday to Sunday night shift, to give our people a break.
1:55 p.m.
Conservative
Ben Lobb Conservative Huron—Bruce, ON
Now, in 2006, you delivered 11.6 billion packages, so there were almost four billion fewer in 2019 than in 2006, according to your financial statements or financial reports. I'm just curious. If we're running 24-7 in 2019, where's the shift there, where in the sorting and processing and everything else...? Is there slack in the system? How is it that we are processing fewer packages, but we're still going full speed?
1:55 p.m.
Interim Chief Operating Officer, Canada Post Corporation
We're processing many more packages than we did in 2019. As I said, the growth for rural-destined packages has been 48%, and in urban Canada it's been 13%. There has been a net increase in package volumes—a significant net increase in package volumes—and what we are investing in is for the future, as we know that e-commerce will grow and the demand will grow, and we need to be able to continue to provide excellent service to Canadians. Over 2019, volumes are growing. Last year, we delivered 323 million packages.
1:55 p.m.
Conservative
Ben Lobb Conservative Huron—Bruce, ON
Okay, but still, total consolidated, it's less than what you were delivering in 2006 with everything.
Fair enough, though. I get your point. There's a different product mix.
1:55 p.m.
Conservative
Ben Lobb Conservative Huron—Bruce, ON
Do you want to comment at all on the pension? Is the pension fully funded or is there a liability with the pension?
2 p.m.
Interim Chief Operating Officer, Canada Post Corporation
I don't have the specifics on that, but I would be happy to provide them to the committee if you desire.
2 p.m.
Conservative
Ben Lobb Conservative Huron—Bruce, ON
Okay. The other thing is that in your financial statements, the equity of Canada.... That's the Government of Canada, when they contribute money; I make that assumption. In the last couple of years, on the equity of Canada, has that gone into operations or has that gone into capital projects?
2 p.m.
Interim Chief Operating Officer, Canada Post Corporation
I'm not a financial expert, but what I can say, let me tell you, is that we've invested heavily into our operations in order to modernize them, to improve capacity and to address some of the challenges some of the members have expressed in our network.