The federal cabinet is planning to rewrite the Canada Post Corporation Act to let the Crown corporation raise stamp prices without waiting months for government approval. Blacklock's Reporter says the change would allow Canada Post to set its own rates directly, speeding up future increases.Cabinet said the amendments would “modernize and expedite the stamp rate-setting process by allowing Canada Post Corporation to set postage rates.” No deadline was set for the changes to take effect.Public Works Minister Joel Lightbound said the current requirement for cabinet approval was outdated. “It better reflects the international reality,” Lightbound told reporters September 25. “All the other countries have increased the price of stamps.”.“We are moving forward with an expedited process that will allow Canada Post to increase the stamp rate,” Lightbound told MPs at the Commons government operations committee on October 23. He said the current system was “burdensome” and kept stamp prices below international levels.“In international comparisons, Canada is way down compared to other countries in terms of the price of stamps,” said Lightbound. Granting Canada Post flexibility to move faster was “an important step,” he said.The last increase — a 25% jump from 99 cents to $1.24 for a domestic letter — was announced September 7, 2024, and took effect January 13 after a months-long approval process. A federal inquiry later called the process “time consuming.”.Canada’s $1.24 stamp remains cheaper than rates in many comparable countries. Domestic postage costs the equivalent of 8 cents in India, 42 cents in Brazil, 66 cents in Russia, $1.10 in the United States, $1.18 in China, $1.56 in Australia, and $2.16 in Saudi Arabia.Despite two rate hikes in 2024 worth a combined $102.2 million annually, Canada Post still posted an $841 million pre-tax loss last year. Lightbound said faster rate adjustments are part of “immediate steps that need to be taken to stabilize the financial situation at Canada Post.”Other proposals under consideration include phasing out doorstep mail delivery in favour of community mailboxes and lifting a 1994 moratorium on rural post office closures. “I am proud to be part of a government that is moving forward with the recommendations,” said Lightbound.
