Canada Post may soon ask Ottawa for another massive loan as the Crown corporation spirals deeper into the red, a Conservative MP told a Commons committee Wednesday, warning colleagues to “keep your eyes open” for a fresh $500 million request.MP Jeremy Patzer said he’d been informed the struggling mail service is preparing to seek more credit from cabinet after burning through its existing billion-dollar lifeline far faster than expected. Blacklock's Reporter said he did not reveal his source but said signs point to another bailout. “There are reports Canada Post says it’s going to need another loan,” said Patzer. “So keep your eyes open for that.”The Liberals granted Canada Post a $1.034 billion line of credit on January 24 to keep the operation solvent. The corporation admitted last week it “would be effectively insolvent” without the loan. But nine months into the fiscal year, the Crown agency has already posted $989 million in losses and expects 2025 to be the worst financial year in its history..Patzer pressed Treasury Board officials on whether taxpayers will ever see the original loan repaid. Under the Canada Post Corporation Act, repayment is supposed to come from annual revenue “insofar as such revenue is sufficient.” Patzer noted the Crown corporation continues to rack up historic losses. “We’re never getting that money back, are we?” he asked.Treasury Board Secretary Bill Matthews insisted the loan remains repayable unless cabinet decides otherwise. He said Canada Post’s ability to recover business lost during rotating strikes will determine future cash flow.“I am sure they are keeping a close eye on that,” he said..Patzer then asked whether a fresh funding request was already circulating. Matthews said nothing had reached his office, though any request would typically go through the minister of public works.Treasury Board President Shafqat Ali added he was unaware of any new appeal for taxpayer cash but could not detail the terms of the earlier loan, saying the arrangement predated his appointment. Patzer repeatedly questioned whether Canada Post is burning through its loan faster than planned and whether taxpayers are being kept in the dark.Canada Post’s Third Quarter Financial Report forecast the largest annual losses in its history, putting even more pressure on Ottawa as the Crown corporation signals deeper trouble ahead.
