Mr. Chairman, I would just like to add a few words in support of what has been said by my cabinet colleague, the minister responsible for Canada Post.
I have just heard something said across the way that I do not believe relates to reality. First, the amendment we have before us speaks of the financial viability of Canada Post. It speaks of principles such as productivity, operating efficiently, and so on. This could apply to any corporation. My colleague has stated very clearly that by financial stability and viability the government means that Canada Post must operate in a manner consistent with comparable industries in the private and public sectors. It must operate that way.
Let us look at the reality. Seven years ago Canada Post was not operating in the competitive sector as it is today, not because we have changed anything but because society has changed. Fax machines, telecommunications equipment, the Internet, electronic transfer of data and finances, and so on are a reality. We must all operate with that in mind.
I would like to add that Canada Post must have sufficient flexibility to manage in a competitive environment. If it does not, it will lose customers to other businesses. Obviously it has to operate that way. Then of course if it does lose business to other enterprises, jobs will be lost and nobody wants that.
In order to do all this, any corporation has to make an acceptable financial return on equity. I heard a colleague across the way refer to Canada Post as a cash cow when it makes, I believe, something less than 2% return on equity. Is that a cash cow? My colleagues who are learned in accounting would say that anything less than approximately 10% return on equity would not be a very profitable business. Obviously a 2% return on equity is certainly not a cash cow by anyone's definition and certainly not by mine. Additionally the arbitrator will have to be guided by the instructions given by the government for the corporation to be profitable when he performs his duties.
I for one and I am sure all of my colleagues expect that Canada Post will be working in a financially sound manner so that it can provide valuable services to Canadians in the long term from here on in.