Mr. Speaker, let me start off by saying that Canada Post Corporation operates at arm's length from the government. In fact, since 1981, Canada Post has had a mandate to operate on a self-sustaining financial basis. It is also important to know that Canada Post is responsible for meeting that mandate in managing its own operations, including day-to-day business and financial decisions.
The NDP is refusing to see the reality of the Canadian postal system. Let us look at the facts. Canadians are choosing to communicate in ways other than sending letters. Due to the lack of demand, mail volumes have dropped almost 25% since 2008, and they continue to fall. In 2006, Canada Post delivered one billion more letters than it did in 2012. Put another way, that is one billion less in 2012 than in 2006. This is placing a huge strain on the corporation's finances. In 2013 alone, Canadian Post lost $129 million before tax in just the third quarter, despite solid growth in parcel mail. Transaction mail volumes fell by 7.3% in the third quarter compared to that same third quarter period last year. That represents 73 million fewer pieces in the quarter compared to the same period last year. The Conference Board of Canada projected that Canada Post could lose roughly $1 billion a year by 2020. It is clear that the traditional postal business model that worked so well in the pre-digital era is increasingly out of step with today's reality. Everyone may love getting mail, but who wants to keep funding antiquated business models that are only drifting further into irrelevance with the march of progress?
Canada Post recognizes that changes are needed to how it handles its business. Let me be clear: the Conference Board projected that Canada Post could lose roughly $1 billion a year just six years from now. This is a substantial amount of money, yet here is what the NDP member for Esquimalt—Juan de Fuca had to say last week on this issue. He said, “We definitely do not have a crisis at Canada Post...”. Only the NDP would think that losing $1 billion a year is not a crisis.
Here is the reality. Not only do we send fewer, if any, cards and letters, but bills, statements, and payments are being sent and paid digitally more and more often. Most companies and governments are actively encouraging Canadians to switch to electronic alternatives to save money and time and to increase security. Polling confirms that Canadians' habits are changing. Almost half of households say they now send two pieces of mail or fewer per month. This is reflected in far less business for Canada Post.
The direction of change is clear and it is irreversible. It is clear that the status quo is simply not an option. Not only parliamentarians but all Canadians should be very concerned that the corporation is posting significant losses. Canadians expect us to be sound stewards of the government's finances. They do not want to be on the hook for the significant losses that have been forecast based on the current business model.
Canada Post's actions are in line with the global transformation of postal services; they are changing to meet modern-day demands. Strategies laid out in its five-point action plan will help to ensure the corporation is on solid financial footing and better reflect Canadians' choices and needs.