Mr. Speaker, the bill before us in the House seeks to make all crown corporations subject to the Access to Information Act.
When the hon. member introduced his bill he mentioned that crown corporations such as Canada Post, among others, should be subject to the Access to Information Act in order to make them accountable. He also mentioned that crown corporations are exempt from the act even though they are subsidized by the taxpayers of Canada.
I found his comments very interesting because I have a special interest in Canada Post as the Parliamentary Secretary to Minister of Public Works and Government Services who happens to hold the responsibility for Canada Post.
I would therefore like to concentrate my remarks on the impact the proposed amendments would have on Canada Post Corporation. First, let me put to rest a fundamental misconception. I am happy to inform the hon. member that since 1988 Canada Post Corporation has not received a single cent of taxpayers' support.
How did it accomplish this impressive feat? It did it because of the direction provided by the Liberal government that created Canada Post Corporation back in 1981. I mentioned before in 1981 Canada Post was incorporated for the purpose of operating on a self-sustaining financial basis. As one of the few crown corporations under the Financial Administration Act, it is recognized that Canada Post operates in a competitive environment. It also is recognized by members on this side of the House that it is not dependent on the appropriations of the Canadian government.
The hon. member said that Canada Post Corporation needs to be open and accountable and I have to say that it is entirely that position this government supports. However, if one looks at the facts, one sees that it is already the case at Canada Post. One only has to read Canada Post's annual statement this year to see that the crown corporation is committed to these principles in both its operation and financial reporting.
Actually the front page of the report says “A Look Inside Our Business”. If the hon. member had taken time to read the report he would have noticed that Canada Post Corporation has its results on a segmented basis and includes an opinion from an independent auditor confirming Canada Post does not cross-subsidize competitive services with revenues from basic letter service.
The report also provides a detailed discussion of the financial results to the highest standard, that required of publicly listed companies. Canada Post is in fact far more open to public scrutiny than its competitors and that is because of this government's commitment to openness.
Since October 1, 1997 Canadians can count on an additional level of accountability at Canada Post with the appointment of a Canada Post ombudsman who will provide an independent avenue for customers whose issues or problems cannot be resolved through normal channels.
As I mentioned earlier, Canada Post has a commercial mandate. This mandate was reconfirmed recently when Canada Post underwent a review of its mandate. In its final response to the Canada Post mandate review, the government confirmed that the corporation requires a commercial mandate in order to ensure that Canadians enjoy a universal postal service.
The private sector competes with many of the services offered by Canada Post. Having financial objectives comparable to that of the private sector, Canada Post cannot successfully continue to meet its mandate if it cannot compete on a level playing field with its competitors.
A Federal Express spokesman appearing before a Canada Post mandate review committee in 1996 highlighted the concern that all companies operating in competitive markets have in regard to access to proprietary information. He said, “I would obviously love to see Canada Post's detailed financial information but I do not think it is fair because, should I see it, then our competitors ought to see mine”. I am in favour of fairness, but what the hon. member is proposing is obviously not fair. Even the Federal Express employee recognized this.
The government must have regard to public interest. In many of the markets in which Canada Post participates, it faces vigorous competition including that posed by large, well financed multinationals such as United Parcel Service and FedEx.
The requirement that Canada Post disclose costs, revenue, operational and consumer information would certainly create a very uneven playing field. Although I do not dispute the merits of accountability and openness in the sectors of the federal government, one must consider the impact of applying across the board disclosure rules to commercial crown corporations.
In this case Canada Post would be placed at a very obvious disadvantage with its competitors unable to collect information themselves but their competitors know all the competitive strategies enlisted by Canada Post. Under the disclosure environment being proposed, these competitors would be under no obligation to release their operational figures to Canada Post.
The reduced competitiveness of Canada Post resulting from compliance with the Access to Information Act would impact on Canada Post's ability to require self-sufficiency. This may in turn reduce the level of postal service to Canadians at a much higher cost to postal services.
Canadians deserve an affordable universal postal service. Despite the challenges posed by this country's size, low population density and extreme weather conditions, Canada Post has been able to provide a postal rate that continues to be among the lowest in the world. That is very good for Canadians and something we all should be proud of.
In conclusion, this government is committed to openness. The government is committed to accountability. However, the legislation before us would cause more harm to Canadians than good. It is not in the public interest and that is why I cannot support it.