Transport Committee on Dec. 18th, 2013

[Deepak Chopra]

They forecast is close to $1 billion in annual losses by 2020 if nothing is done. Then they did their econometric studies to come up with a set of options. They very clearly outlined that no single option could address the massive shifts in technology and the massive shifts we are seeing in our revenue declines. Therefore a basket of options will have to be considered.

We discussed this in communities all across the country. After each community meeting we met with the local media to explain those options, why we were considering them, what transpired, the decline of one billion mail pieces. Canadians then very quickly said to us, “We weren't thinking of Canada Post but now that you mention it, we don't use mail as much”. Once we started to talk about the post, it became apparent that we were the light switch: when you flick it on, it comes on and no one thinks about it. But the moment they thought about it, they immediately realized they didn't use the mail as much. Most people couldn't recall the last time they wrote a letter.

That consultation process was to discuss all the options that were laid out and get feedback. For example—

[Jeff Watson, Conservative, Essex, ON]

Just to be clear, the consultation was about the basket of options that the Conference Board put out.

[Deepak Chopra]

Exactly. We went to 46 communities—

[Jeff Watson, Conservative, Essex, ON]

It was their scientific analysis, right?

[Deepak Chopra]

—all across the country, in every province and in the north. We sat down with the type of people I mentioned in my opening remarks, and we heard from small businesses. On the one hand, we heard from Canadians that they're fine if they don't get the mail every day. They're fine if the mail only comes two or three days a week.

Then we heard from small businesses: there is no good day to stop mail. I get my cheques. I am a small business. I don't have high-tech computers to generate online bills. I send bills and I receive cheques. Please, my business cannot wait. If you miss one day and then there's a weekend in between, I cannot wait a week to have my cheque mailed to me.

They also said that they run difficult businesses, and they understand that we have to do what we have to do. They understand because they are businessmen themselves.

[Jeff Watson, Conservative, Essex, ON]

The five-point plan, then, is ultimately what Canada Post has determined is the action that needs to be taken based on those consultations.

[Deepak Chopra]

Indeed. The consultations had several options. We had to then narrow them down to what made sense for the needs of Canadians, and what made sense for Canada Post operationally, to be able to execute it to bring the corporation back into profitability.

[Jeff Watson, Conservative, Essex, ON]

You said earlier that Canada Post Corporation is arm's length and responsible for its financial decisions, a point backed up by the former Auditor General in her report in 2009 with respect to the postal transformation initiative. So it's not just your word on that.

On the process going forward, obviously this is an announcement. There's no implementation. Contrary to opposition concerns that impacts are already being felt, they are not being felt at this point. The plan is to be implemented.

I think you made some public announcement that there will be consultation. Does that have to do with mitigation of impacts in communities with respect to seniors or Canadians with disabilities? Can you walk us through what Canada Post thinks that implementation process will look like?

[Deepak Chopra]

Fortunately, we have been doing the implementation of community mailboxes for three decades, working with municipalities, city planners, and communities. We have good experience in that area. We intend to bring all of that experience to bear and to work with communities and municipalities and planners to make sure that we do this in a thoughtful manner and have good, robust criteria in place to make sure that the placement, the look and the feel of it, is done in a safe manner that is convenient and that is appropriate for the community.

That process will kick in next year in earnest. We will be talking to Canadians. We will be absolutely communicating with Canadians before, during, and after all steps of the process, making sure they understand what it means, how we will make the changes, and indeed some of the benefits that two-thirds of Canadians will have when they are not home and their mail is behind lock and key, especially regarding important documents.

As Canadians go through this process, we will be communicating every step of the way, and working with municipalities as well.

[Jeff Watson, Conservative, Essex, ON]

On the five-point plan, are you and your board confident that this will bring the corporation back to financial sustainability? You have an obligation, of course, to be self-sufficient, a mandated obligation to be self-sufficient. Are you and your board confident that this will happen with this plan?

[Deepak Chopra]

When you look at the changes that have transpired within the mailing system in the last five or six years, they have been more drastic than over the last 40 years combined. We have taken a hard look at the macro factors and have done a lot of rigorous analysis. We have done our homework.

With the facts that are available to us and with the information that's available to us, we believe this is a robust plan. We believe this will bring the corporation back to profitability by 2019. But as the world evolves, as the world changes, as we are seeing the technology change and rapidly evolve, we will be evolving with it.

[The Chair, Conservative, Larry Miller]

Thank you very much.

Mr. Dewar, five minutes.

[Paul Dewar, NDP, Ottawa Centre, ON]

Thank you, Chair.

Thank you to our guests.

Mr. Chopra, I have a quick question.

The Conference Board study, obviously, was something you were aware of, because you do work for the Conference Board.

[Deepak Chopra]

I don't work for the Conference Board.

[Paul Dewar, NDP, Ottawa Centre, ON]

You have done work and do work for the Conference Board from time to time—is that correct?

[Deepak Chopra]

No, I volunteer in an unpaid position as a director for a not-for-profit organization.

[Paul Dewar, NDP, Ottawa Centre, ON]

As a director of the Conference Board, you were certainly aware of the work they were doing on behalf of Canada Post, I would assume.

[Deepak Chopra]

The actual operations of the corporation or—

[Paul Dewar, NDP, Ottawa Centre, ON]

Were you aware that this report was being done for Canada Post—yes or no?

[Deepak Chopra]

Of course I was aware.

[Paul Dewar, NDP, Ottawa Centre, ON]

Thank you.

I have a second question regarding that. You came out with what I found to be an incredible comment about how robust your consultations were. Sir, most Canadians had no clue, yet your comment was that there were consultations in 46 communities and hundreds of articles. I'll tell you it was a fail. No one knew you were doing this work in a robust way.

So what we have here, according to the report from your consultation, suggests that everyone was happy to pay more and do with less. I'll tell you that Theresa Reid, who lives down the street from you and is a constituent of mine, phoned me and said, “Mr. Dewar, we have to do something. I can't live with this”. I would like you to meet her. I would like you to meet the people who are directly affected.

We have your consultation report, and it has all these great quotes about how wonderful it would be if we just had everyone do with less and pay more. In your consultations, did you have no negative comments about some of these things? If so, I would like to see all of the data. Could you please present that data to this committee? What I have in this consultation report is not capturing what we are all certainly hearing in our ridings. Can you please submit that information to this committee?

[Deepak Chopra]

You are absolutely correct in saying that difficult choices are going to be made.

[Paul Dewar, NDP, Ottawa Centre, ON]

No, I'm asking if you captured that in your report—yes or no?

[Deepak Chopra]

Of course there are always competing needs of Canadians, which we're trying to balance. So there are Canadians who said they would prefer certain options. For example, Canadians said they would like alternate-day delivery and that they would prefer to keep....

With regard to your pricing question, I think it's important to understand that pricing—

[Paul Dewar, NDP, Ottawa Centre, ON]

I didn't have a question about that. I said can you please—and I'm just asking you a very specific question, and yes or no would be nice—submit the data from all your consultations to this committee so people can look at it. Yes or no?