Management at Canada Post has warned MPs that the national postal service must confront significant challenges to remain viable, with new loss figures expected to be disclosed soon. Blacklock's Reporter said the remarks were made as the organization grapples with declining revenues and the need for modernization."Canada Post is now at a critical juncture: Modernize and revitalize to serve a rapidly changing country or fall behind and struggle to keep it all going," management wrote to the Commons government operations committee, without providing further details.Acknowledging the necessity for change, the statement emphasized the decline in traditional mail volume over the years. "Canadians understand our business model must change," management wrote. "They can see it in their mailbox. Households across the country received an average of seven letters per week in 2006. Today it’s only two letters a week."With the most recent available data revealing a pre-tax loss of $548 million in 2022, Canada Post faces mounting financial pressure. Parcel, mail, and direct marketing revenues have all experienced declines, with the forthcoming Annual Report expected to shed further light on the extent of the financial challenges.Alexandre Brisson, vice-president of operations, testified before the government operations committee on April 8, stating that the new report will "provide more insight into the gravity of our financial situation."Adding to the concerns, it was revealed that cabinet has not approved any new corporate plan for Canada Post in five years, despite the Treasury Board typically reviewing such plans annually. The last approved corporate plan dates back to 2019, raising questions about the organization's long-term strategy.Former Public Works Minister Anita Anand testified in 2021 that the government was working closely with Canada Post's board of directors to devise a plan to restore profitability. However, Conservative MP Kelly McCauley raised doubts about the clarity of this plan, highlighting the lack of a recent corporate submission to the government.In response to concerns about the sustainability of Canada Post, Liberal MP Charles Sousa, parliamentary secretary for the Department of Public Works, expressed apprehension about the organization's recurring financial losses. "Obviously Canada Post’s recurring financial losses are concerning, concerning in the sense it is almost unsustainable given the net liquidity position is depleting," Sousa remarked.
Management at Canada Post has warned MPs that the national postal service must confront significant challenges to remain viable, with new loss figures expected to be disclosed soon. Blacklock's Reporter said the remarks were made as the organization grapples with declining revenues and the need for modernization."Canada Post is now at a critical juncture: Modernize and revitalize to serve a rapidly changing country or fall behind and struggle to keep it all going," management wrote to the Commons government operations committee, without providing further details.Acknowledging the necessity for change, the statement emphasized the decline in traditional mail volume over the years. "Canadians understand our business model must change," management wrote. "They can see it in their mailbox. Households across the country received an average of seven letters per week in 2006. Today it’s only two letters a week."With the most recent available data revealing a pre-tax loss of $548 million in 2022, Canada Post faces mounting financial pressure. Parcel, mail, and direct marketing revenues have all experienced declines, with the forthcoming Annual Report expected to shed further light on the extent of the financial challenges.Alexandre Brisson, vice-president of operations, testified before the government operations committee on April 8, stating that the new report will "provide more insight into the gravity of our financial situation."Adding to the concerns, it was revealed that cabinet has not approved any new corporate plan for Canada Post in five years, despite the Treasury Board typically reviewing such plans annually. The last approved corporate plan dates back to 2019, raising questions about the organization's long-term strategy.Former Public Works Minister Anita Anand testified in 2021 that the government was working closely with Canada Post's board of directors to devise a plan to restore profitability. However, Conservative MP Kelly McCauley raised doubts about the clarity of this plan, highlighting the lack of a recent corporate submission to the government.In response to concerns about the sustainability of Canada Post, Liberal MP Charles Sousa, parliamentary secretary for the Department of Public Works, expressed apprehension about the organization's recurring financial losses. "Obviously Canada Post’s recurring financial losses are concerning, concerning in the sense it is almost unsustainable given the net liquidity position is depleting," Sousa remarked.
