Mr. Speaker, I have listened very carefully to the member's remarks. Before proceeding with a detailed explanation of the changes that will occur in Quebec City, I would like to talk briefly about Canada Post, a company in which we, as Canadians, take pride, a company recognized around the world for its efficiency and postal expertise.
Canada Post makes a significant contribution to the national economy. Each year, the corporation spends $2.8 billion on the purchase of goods and services, thereby, creating 30,000 additional jobs. However, it does this responsibly. While the former post office department often posted deficits of about $500 million a year, Canada Post is now earning profits for its shareholders: all Canadians.
The creation of Canada Post Corporation in 1981, approved by all political parties in the House of Commons and by the postal unions, has paid off very well. What an outstanding turnaround in a fairly short period.
Canada Post's financial success has not been achieved on the backs of Canadians. Quite the contrary, letters are now delivered at some of the most competitive rates in the world, despite a harsh climate and a vast country.
However, without wishing to appear alarmist, the corporation is facing major challenges, similar to all postal administrations around the world. Communications methods are changing fast and Canada Post must adapt to market changes in response to declining mail volumes noted in recent years, a decline that will be proportional to the rise in electronic communications.
At the same time, improvements to processes, productivity and equipment in recent years have developed greater processing capacity in some postal plants across Canada.
In this very real context, Canada Post is continually assessing its network of mail processing plants throughout Canada to optimize its operations and improve service to Canadians.
Given the current context, the recent announcement that processing of letter mail and ad mail will be transferred from Quebec City to Montreal over the next two years was necessary. The transfer will be carried out without putting a single permanent employee out of a job.
Canada Post must review its operations at the national level. It must also consider that no fewer than 10,000 employees will retire over the next four years of their own free will and in full compliance with the collective agreements.
In Quebec City, Canada Post will continue to invest in the community and will remain a large employer by maintaining 1,100 jobs and economic benefits of $90 million.
Planned investments for the Quebec region by Canada Post include $750,000 to renovate one of its facility for use as a parcel processing hub. It also will have to build a new letter carrier station to replace the one now at 300 Saint-Paul Street, and that means another investment of $2 million to $4 million. The same is true for the need to move administrative employees to another location, which will cost some $1.2 million.