The Canadian government yesterday announced a permanent end to Canada Post’s controversial aim of saving hundreds of millions of dollars in operating costs by dropping home mail deliveries in favour of community mailboxes.
The cancellation decision was the most prominent measure in a ‘renewal vision’ for Canada Post presented yesterday by Canadian Public Services and Procurement Minister Carla Qualtrough at a sorting facility in Mississauga, which neighbours Toronto.
Under a five-year Action Plan unveiled in 2013 to return Canada Post to long-term financial self-sufficiency, the government-owned postal operator had wanted to save hundreds of millions of dollars a year in costs by phasing out home delivery of letters to some five million addresses in favour of community mailboxes with individual compartments per household.
But the move quickly proved controversial and prompted nationwide protests. In 2015, the newly-elected Liberal government suspended the programme pending a deeper review of Canada Post’s future.
Yesterday, Qualtrough, whose ministerial responsibilities include Canada Post, announced that this suspension would be made permanent. However, some 840,000 households whose mail delivery was converted before the suspension will not have their home mail delivery restored but will continue to use community mailboxes.
She emphasised: "Service to Canadians must be at the heart of Canada Post's work. Our government is laying the foundation for the long-term renewal of Canada Post so that it can continue to connect Canadians from coast to coast to coast. This foundation for renewal will be critical in building Canada Post into an innovative organization that can quickly adapt and respond to new technologies and the shifting expectations of Canadians in a sustainable way."
Aligned with the service-first vision, the program to convert home delivery to community mailboxes will be terminated effective immediately, building on the previously announced moratorium, the government announced. Additionally, to help those who have difficulty accessing community mailboxes, Canada Post will significantly expand its accessibility program, especially for older people and those with reduced mobility.
Moreover, Canada Post will be reclassified under the Financial Administration Act with the strengthened expectation that it will reinvest all of its profits in service and innovation. It will also promote its affordable remittance services to Canadians through its vast network of post offices across the country.
In 2016, Canada Post delivered 8.4 billion pieces of mail to 16 million addresses across Canada. This included delivering 2 out of every 3 parcels ordered by Canadians online. During the 2017 holiday season, Canada Post experienced the highest volume in parcel deliveries in recent history.
