Thank you, Mr. Chair.
Thank you to all members of the government operations and estimates committee for the invitation. It is special for me to be with you as this is my first appearance before the committee as Minister of Public Works and Procurement. It's an honour to be here.
I would like to thank the committee for the opportunity to discuss Canada Post today, an institution that is vital to our country, that Canadians love, and that they are very attached to, as am I. I think it's important that we all have this discussion together.
I would also like to thank the committee for their valuable report entitled “Canada's Postal Service: A Lifeline for Rural and Remote Communities”. As Minister of Government Transformation, Public Works and Procurement, I welcome the work of this committee. Our government is committed to addressing their thoughtful recommendations. On Monday, October 20, 2025, the government tabled its response to the committee's report. I'd be pleased to discuss it later today.
Mr. Chair, we are equally committed to seeing Canada Post survive through this existential crisis it is in. As you all know, the labour dispute is ongoing. I continue to urge both management and the union to find a path forward at the bargaining table. Over the course of the last weeks and months, I've met with both the union and management. I know they are both committed to finding a sustainable path for Canada Post. I urge them to keep negotiating in good faith.
Canada Post is an institution that needs saving. At this juncture in its history, and maybe more than ever, it's an institution that needs saving.
For nearly 160 years now, and to this day, postal workers have connected Canadians, rain or shine, in small towns and in big cities, providing a lifeline to hundreds of northern, indigenous and remote communities.
However, the current situation for Canada Post is unsustainable. Since 2018, Canada Post has accumulated more than $5 billion in losses. In 2024, it operated at a loss of $1.3 billion and, in January of this year, required an injection of $1 billion to keep it afloat.
In the second quarter of 2025, the corporation lost $407 million, which is their worst quarter ever. At this point, the corporation is losing $10 million every day. In fact, with the labour unrest it is currently facing, it's probably more than $10 million per day at this point. The fact of the matter is, Mr. Chair, that Canada Post is effectively insolvent.
When we look at how the world is evolving, this should come as no surprise. The world has changed in recent years. Letter mail volumes have declined from 5.5 billion 20 years ago to 2.2 billion today.
Twenty years ago, Canada Post delivered 5.5 billion letters per year. Today, that number is two billion. Twenty years ago, Canada Post delivered to 14.3 million addresses. Today, that number is 17.6 million.
While Canada Post delivers fewer letters to more addresses, Canadians have been sending and receiving more packages than ever before, but they are increasingly turning toward private competitors.
Canada Post provides an essential service to Canadians, especially rural, remote and indigenous communities. Canadians rightly want this service to be protected.
I think this bears repeating in English.
Given the current financial situation of Canada Post, the status quo and repeated bailouts by the federal government are not the solution.
As the minister responsible, I must ensure that the overall direction of Canada Post aligns with the government's policies and objectives. That implies making responsible but at times difficult decisions. This is why in September I announced that the Government of Canada would accept the recommendations from the Industrial Inquiry Commission, led by William Kaplan.
This means making a series of changes to stabilize the financial situation at Canada Post, including flexibilities in delivery standards.
In Canada, the average household now receives just two letters per week, yet operations are still designed for much higher volumes. Adjusting delivery standards will allow non-urgent mail to travel by ground instead of air and will save more than $20 million a year.
This government has also removed the moratorium on the conversion to community mailboxes. Three quarters of Canadians already receive mail through community, apartment or rural mailboxes, while one quarter still receive door-to-door delivery. The government has authorized Canada Post to introduce community mailboxes to approximately four million more addresses, which will ultimately save the corporation nearly $400 million per year.
As recommended in the Kaplan report, we'll be lifting the rural moratorium that was imposed in 1994. The moratorium has not evolved in 30 years, but Canada has changed. Areas that used to be rural may now be suburban or even urban. It also means that multiple post offices operating near each other, including some that are just a few hundred metres apart, are required to stay open. I have instructed Canada Post to come back within 45 days of the announcement with a plan to protect service in rural, remote and indigenous communities.
Let me be clear: Canada Post has an obligation to serve all Canadians in every community in Canada, and that will not change.
I'm almost done. I'll speak at my pace in question period, so I'll try to be a little faster.
At last, the government is reviewing the process for increases to the stamp rate to modernize and shorten it, in line with the Kaplan recommendations. Taken together, these measures will help stabilize Canada Post's financial situation by generating close to half a billion dollars in savings a year.
There is more to do. As such, I have also asked Canada Post to come back to me within 45 days with a plan for how it will be taking immediate action to address its financial challenges, which means finding efficiencies, reducing costs, reducing overhead, and reviewing and lightening its management structure.
In conclusion, our government must make choices. If we do nothing, Canadians will have to bear losses of $10 million per day. For us, inaction is not an option. These changes are necessary to save Canada Post and put it on the path to sustainability, and that is what we are committed to doing.
