Evidence of meeting #25 for Transport, Infrastructure and Communities in the 40th Parliament, 2nd session. (The original version is on Parliament’s site, as are the minutes.) The winning word was post.
A recording is available from Parliament.
Liberal
Sukh Dhaliwal Liberal Newton—North Delta, BC
When we look at the standard practice within the crown corporations, to screen the context, you gave it by a letter, you said. Why did you not go through the whole bidding process?
President and Chief Executive Officer, Canada Post Corporation
Because we didn't have time. We know the business. We've been in the business a long time--
Liberal
Sukh Dhaliwal Liberal Newton—North Delta, BC
But how can you assure the committee that you did not have enough time?
President and Chief Executive Officer, Canada Post Corporation
Well, we did want to update our intelligence. You know, things can change. But we do know the business and we have relationships with all four participants in our process.
As for just the real constraint of the time pressure that was put on us to reconstruct the entire air transport network capable of moving 72 million pounds of mail a year over 300 different lanes, involving coordination with our handling procedures and our mail treatment facilities, it was a very big undertaking. We just simply did not have time to go through the whole RFP process, and we felt that we were very well positioned because we know the capabilities of Purolator, and we generally knew the capabilities of the other three participants because they work with us.
But to update our market intelligence, we did an RFI, and we gave all four participants an opportunity to tell us exactly how they would meet the requirements of Canada Post to deliver the mail to Canadians across this network, and how they would do it inside that timeframe of being ready to start at the end of August.
Liberal
Sukh Dhaliwal Liberal Newton—North Delta, BC
Canada Post is subject to the agreement on government procurement--is that correct?
President and Chief Executive Officer, Canada Post Corporation
I'm not sure. I'd have to check that for you.
Canada Post is a commercial crown corporation, Mr. Dhaliwal. We're not a government department. We do adhere to very strict procurement processes. And I can tell you that they have been audited, evaluated, and assessed every which way to Sunday in the past few years.
It is the case that when you are a crown-owned entity it is not unusual for people who want to do business with a crown-owned entity, when they're not successful, to let their political representatives know their displeasure. So there is a lot more visibility to everything we do, and I think we meet the greater demands that are on crown-owned entities in every respect.
Liberal
Sukh Dhaliwal Liberal Newton—North Delta, BC
You also mentioned that CITT has no jurisdiction over you.
President and Chief Executive Officer, Canada Post Corporation
It does not on air transport matters. Those are exempted from NAFTA.
Liberal
Sukh Dhaliwal Liberal Newton—North Delta, BC
Even though it doesn't, why wouldn't they exonerate you in that?
President and Chief Executive Officer, Canada Post Corporation
We weren't even a party to that action. You have to understand that it was DIAND that was a party to that action, an action brought, unfortunately, by a disappointed supplier in the RFP. And it was a full RFP process, that food contract, because we do that for DIAND. We weren't even a party to that action.
Conservative
Bloc
Roger Gaudet Bloc Montcalm, QC
Thank you, Mr. Chair.
In February 2009, the postmaster in my riding resigned. I inquired with Canada Post to try to find out when the position would be open. I found out on April 3. I have a fax here to prove it. The competition closed on April 5.
You have talked a lot about transparency, but I would just like to know if anyone at Canada Post is able to give members answers.
President and Chief Executive Officer, Canada Post Corporation
But of course, Mr. Gaudet.
Bloc
Roger Gaudet Bloc Montcalm, QC
I do not want an answer that is not really an answer, that is, I do not want someone to pass the buck and say that it is the responsibility of the people in human resources. I want an answer, and I do not want to have to speak to every single person in Canada Post to get it. Otherwise, Ms. Greene, I will ask you for your telephone number and call you.
President and Chief Executive Officer, Canada Post Corporation
I am sorry that you were not satisfied with the answer you were given, Mr. Gaudet. I will take care of it myself. I promise you. That is not how things are usually done. Normally, a group at Canada Post called the Community Outreach Program considers these matters very carefully. When there is a change in service delivery in a community, this group speaks with federal, local and other representatives to determine whether there are other options.
Certain things can happen, such as people resigning. Canada Post's mission is delivery. When a change has to be made, normally, this group studies the issue in the region in question and assumes all of the responsibility that goes along with that. I will take care of it, myself, Mr. Gaudet. I am sorry that you were not satisfied.
Bloc
Roger Gaudet Bloc Montcalm, QC
It was the people in my riding who gave me answers. I tried to reach the post office in Trois-Rivières, and I got human resources.
Chairman of the Board, Canada Post Corporation
We owe you an answer. We apologize.
Bloc
Roger Gaudet Bloc Montcalm, QC
That is the least you can do. Furthermore, I was the mayor of that municipality for 13 years. We were talking about transparency earlier. What I am talking about does not involve millions of dollars, but it is just as serious.
Conservative
Conservative
Brian Jean Conservative Fort McMurray—Athabasca, AB
Thank you, Mr. Chair.
I have one very quick question, Ms. Greene.
Would Canada Post have sent a request for proposal if they were not under this time constraint, if there hadn't been such a quick cut-off time by Air Canada?
President and Chief Executive Officer, Canada Post Corporation
Normally, yes. Normally that's how we would proceed.
Conservative
Brian Jean Conservative Fort McMurray—Athabasca, AB
So is that a yes in this particular circumstance?
President and Chief Executive Officer, Canada Post Corporation
Yes. It was the time issue here, Mr. Jean. We were very concerned. We knew it was going to be a very elaborate operation to recreate that air network.
Conservative
Brian Jean Conservative Fort McMurray—Athabasca, AB
So what you were doing was taking into consideration the concerns of your shareholders, the people of Canada, who actually receive the mail ultimately and who are also your customers.
