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Finance committee  I would perhaps address an earlier part of your question.

May 4th, 2010Committee meeting

Katherine Moynihan

Finance committee  It is only going back a number of years that Canada Post began to take legal action against some of the companies involved in remail in Canada. The courts have found that, despite arguments to the contrary, outbound international mail was part of Canada Post's exclusive privilege as defined in the Canada Post Corporation Act.

May 4th, 2010Committee meeting

Katherine Moynihan

Finance committee  Canada Post said it was a risk of lost revenue. We are talking about gross revenue, but not an impact on the corporation's net situation.

May 4th, 2010Committee meeting

Katherine Moynihan

Finance committee  That may be, but I have to say again that it is a risk of lost revenue—only a risk. I don't imagine that this change is going to happen very fast in the market, because the companies that do remailing have been doing business in Canada for decades.

May 4th, 2010Committee meeting

Katherine Moynihan

May 4th, 2010Committee meeting

Katherine Moynihan

Finance committee  That may be, but we are talking about the potential for a loss of less than 1% of revenue. Canada Post has a really large revenue base. If we look at the estimates for the corporation's performance for the years to come, we see that remailing is not what is going to make the difference between profit and no profit.

May 4th, 2010Committee meeting

Katherine Moynihan

Finance committee  Essentially, if the change is made, it will be clarified that remail is legal in Canada. If the change is not made, I would expect that the stay on the injunction would not be extended. There's a lot of conditional in there, which is why I didn't attempt to say it in French. If this were not to go through and the injunction were not to be extended, the remail businesses would have to stop their activities.

May 4th, 2010Committee meeting

Katherine Moynihan

May 4th, 2010Committee meeting

Katherine Moynihan

Finance committee  Canada Post has recently estimated that the revenue risk is between $40 million and $80 million on a revenue base of $7.3 billion. These companies have been in operation in Canada for over 20 years. The provision in Bill C-9, as in the previous Bill C-14 and Bill C-44, does not change Canada Post's powers or its mandate, which is to offer a universal postal service in a financially self-sustaining manner.

May 4th, 2010Committee meeting

Katherine Moynihan

Finance committee  This is a minor change to Canada Post's exclusive privilege that will essentially legalize an industry that has been active in Canada for 20 years.

May 4th, 2010Committee meeting

Katherine Moynihan

Finance committee  Canada Post has been active in outbound international mail for many years. It will continue to compete in the industry, despite any change that may be made to its exclusive privilege. This simply clarifies the legal standing of the outbound international mail industry, which, as I say, has been active in the country for over 20 years.

May 4th, 2010Committee meeting

Katherine Moynihan

Finance committee  The Ontario Superior Court of Justice commercial list had given an injunction against G3 Worldwide Canada, also known as Spring, or Spring Canada, but that court put a stay on that injunction. That stay has been renewed a couple of times, and it is now active until December 31, 2010.

May 4th, 2010Committee meeting

Katherine Moynihan

Finance committee  I would not expect so. It is a fairly small potential impact on Canada Post revenue, and also the government issued a Canadian postal service charter in September 2009 that laid out expectations for Canada Post service. It specifically noted that rural postal services are an integral part of the universal service obligation of Canada Post.

May 4th, 2010Committee meeting

Katherine Moynihan

Finance committee  Canada Post did that estimate.

May 4th, 2010Committee meeting

Katherine Moynihan

Finance committee  Yes, that's right.

May 4th, 2010Committee meeting

Katherine Moynihan