Madam Speaker, I am glad to have a second chance to talk more about the great work Canada Post does and its modernization.
I can assure the member that 500,000 jobs will not be lost at this particular plant because of its closing. I would ask the Bloc Québécois members once again not to attack other provinces when they are trying to make their case.
I would like to talk briefly about Canada Post and hopefully answer some of the member's questions.
Canada Post is a company in which we as Canadians take pride. It is a company recognized around the world for its reliability, 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. 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 of the House of Commons and by the postal unions, has paid off. What an outstanding turnaround in a very short period of time.
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. Communication methods are changing fast. 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 this 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. This is remarkable. This commitment is possible because Canada Post can easily reassign its employees affected by the transfer to other locations in Quebec. Some 300 of its 1,400 permanent employees will take a well deserved retirement of their own free will. A vast majority of retiring employees are postal clerks and letter carriers. Canada Post is providing them with a good retirement consistent with their collective agreement.
The situation will not be unique to Quebec. In fact the decline in the number of letters to be processed, a result of the growth in electronic communications, is forcing Canada Post to 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 their 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 its facility on Hughes-Randin Street for use as a parcel processing hub. It will also have to build a new letter carrier station to replace the one now at 300 Saint-Paul Street. That means an investment of another $2 million to $4 million. The same is true for the need to move administrative employees to another location, which will invest $1.2 million in Quebec. Clearly Canada Post is not leaving Quebec.
On the matter of the future of the building at 300 Saint-Paul, and given that it will not close for another two years, this leaves enough time to find the best possible use for this location.
Canada Post will continue to meet its service commitments in Quebec by adapting its network and processing operations. These changes will have no effect on the quality of service presently provided. Some 70% of this mail is already forwarded to Montreal after being processed a first time in Quebec City. By sending it to Montreal right away, service will be made better.