:
Mr. Speaker, this is a government committed to helping Canadian businesses compete internationally.
In Canada we have businesses involved in what is called remailing. Remailing is a business that most hon. members are probably not aware of. Indeed, remailers collect mail destined for international locations from large, commercial mailers. The remailer, or consolidator, then ships the mail outside of Canada to another country, a country with cheaper postal rates, ideally, a country that has been designated as a developing country by the Universal Postal Union.
The Universal Postal Union is an agency of the United Nations. It has been in existence since the late 1800s. Today, it has close to 200 members and deals with postal issues. It does not get involved in domestic postal matters. Its role is to act as a primary forum for cooperation among postal sector players. It actually sets the rules for international mail exchanges and makes recommendations to its members, “To stimulate growth in postal volumes and to improve the quality of service for customers”.
It was the Universal Postal Union that established a single postal territory for the exchange of international mail, which obviously is very necessary. This means that when we are mailing a letter out of the country, we can buy an international stamp to put on that letter.
Canada Post would keep the revenue from that stamp, but it would be a different postal administration delivering that letter. It is that other postal administration that is incurring the bulk of the cost for the delivery of the letter.
Therefore, under the Universal Postal Union system of international exchange of mail, Canada Post would need to compensate the country of delivery. This compensation is called a terminal due.
The Universal Postal Union has classified its member countries as industrialized or developed versus those that are developing. Obviously different countries fit into different categories. This classification affects the rate of terminal due a country is eligible to receive from another country for mail it has received and the rate it is obliged to pay another country for mail that it sent out.
It is a complicated issue, but remailers do not have to pay terminal dues and are therefore able to offer lower rates than Canada Post. The Universal Postal Union also allows remailing. There are other countries that allow remailing. However, Canada does not.
A few years ago Canada Post took a large number of remailers to court. The courts have rightly ruled, in reading the exclusive privilege of Canada Post, that remailing is an infringement upon Canada Post's exclusive jurisdiction. This exclusive privilege was granted to Canada Post through its legislation. This is legislation that was passed in the House of Commons over 20 years ago when the Canada Post Corporation Act was first enacted.
Since the exclusive privilege is set out in the act, the only way to adjust this exclusive privilege is to amend the act. It is only Parliament that can change provisions of the act, and only after public debate and discussion will that change be made.
The government is pleased to have introduced Bill , and the purpose of this bill is to remove all outgoing international mail from Canada Post's exclusive privilege. This would actually enable remailers to operate in Canada without infringing on Canada Post's exclusive privilege. They would no longer be breaking Canadian law. They would no longer be at risk of a legal challenge.
Although the bill is proposing something broader than just remail, its net effect on Canada Post is not expected to be any different. Indeed, the business model of remailers is to collect large volumes of mail from commercial companies. It is not interested in collecting mail from you, Mr. Speaker, nor I.
They offer Canadian businesses lower postal rates. This actually reduces the cost of those companies. This reduces the cost of their goods or services to Canadians, to consumers, which is ultimately a good thing for Canadians. This results in lower costs to the ultimate consumer of the goods or service.
In fact, there used to be many federal government departments and agencies that used the services of remailers for their mail going overseas. They had shopped around to find the lowest rates so that they could make effective use of taxpayers money.
The proposed legislation is not intended to allow the mail to come back into Canada and that is very clearly a difference that should be re-explained. The addressee of the letter is to be in a foreign country. We are not touching domestic mail. The addressee is to be outside of Canada. Remailers that attempt to send mail back into Canada will still be in contravention of the exclusive privilege of Canada Post after amended.
We are not proposing to let other postal sector players put stamps on their mail while it is in Canada. Some other countries also allow an Extraterritorial Office of Exchange, which is defined by the Universal Postal Union as:
--an office or facility, operated by or in connection with a postal operator, outside its national territory, on the territory of another country. These are offices established by postal operators for commercial purposes to draw business in markets outside their own national territory.
If a stamp is put on a letter while in Canada, it should have a Canada Post approved stamp. If Canada is to allow these ETOE's, or the Extraterritorial Offices of Exchange, there should be a licensing regime associated with it. We are not going there with this proposal. We are not allowing other countries to operate postal outposts in Canada. We want to help Canadian businesses compete internationally and we are attempting to do that with this legislation.
The government has studied the issue. Canada Post has told us that it estimates it is currently foregoing revenues in the amount of $50 million to $80 million a year. This is an estimate based on what it has seen as a trend in its revenue stream since new rules were put in place by the Universal Postal Union in 2001. Canada Post does not know for sure how much business it has been losing to remailers operating illegally in Canada.
On the other hand, the industry itself has made claims of it being millions of dollars to hundreds of millions of dollars. Because the courts have ruled remailing as unlawful, we cannot get data or information from the industry members that can be validated. These are small businesses often, and some large businesses, and usually located in places such as Vancouver, Toronto and Montreal.
Both estimates from Canada Post and from the industry itself are significant. They are also not very close. Some of the difference can be accounted for given that they are based on different premises and, of course, different expectations.
The Canada Post estimate represents the impact on Canada Post itself and is not a measure of the industry. The industry estimate is more of an estimate of economic impact as it includes supporting businesses such as envelope manufacturers and print shops throughout the country, as I mentioned.
Should this legislation get enacted, Canada Post estimates losing another $45 million to $50 million a year, so there are financial implications. Its employees will worry that this is a first step toward privatization. Let us be clear. This government will not privatize Canada Post and there are no plans to do so.
Canada Post is a very large institution. It is one of the largest employers in Canada. It has one of the largest retail networks in Canada. It provides services to Canadians from coast to coast to coast. Some would argue that it is indeed a Canadian icon.
I would argue that in rural communities in my constituency there is no federal institution that is more important to my constituents than Canada Post. That is why this government is taking positive action for Canadians.
There are many issues and challenges facing this corporation. It would be easy to get sidetracked on any number of these issues. We just need to ask the previous members of the Standing Committee on Transport, Infrastructure and Communities. They had some discussions on remailers, as my friend across the way will confirm.
The members tabled motions and amendments to those motions. At the end, they reported back that they wanted time to study the issue. This government has decided that it has done enough studying. The government has decided it is time to take action and positive action will be taken.
The bill itself is targeted to this specific issue. We do not want to get sidetracked in our goal to address this issue. Indeed, we also do not want changes to Canada Post to be widespread. This government is not interested in destroying Canada Post or privatizing it. We are not opening up our domestic mail services.
This is not the first step in the privatization of Canada Post. I have said that three times. I can assure the House that we are sincere on that.
We are enhancing competition in the outbound international mail business to benefit Canadians, to benefit small businesses across this country, and we are going to continue to support Canadian businesses.
:
Mr. Speaker, I was beginning to wonder whether we were actually going to get to the bill itself. If members do not mind my repeating what the last questioner asked in the debate, it is about a very small element, section 15 of the Canada Post Corporation Act, to be amended by adding the following after subsection (2):
The exclusive privilege referred to in subsection 14(1) does not apply to letters intended for delivery to an addressee outside Canada.
That is all. That is what the bill is about. We have heard for the last 20 some minutes what the bill does not intend to do, which is fine. I do not think that we in this House should be worried about what it is not intended to do, but rather what it is intended to do. From my perspective, as one of those members referred to by the previous speaker on the committee, this amendment to the Canada Post Corporation Act is really intended to protect the jobs of those small businesses that operate within the parameters of the Canada Post Corporation Act as they were interpreted until two years ago. That is all.
We can either agree that the jobs of people who have been engaged in legitimate business and the businesses that have been engaged in a legitimate environment are worthy of consideration and protection, or they are not. The moment we agree that those men and women have been engaged in activity that has been productive for them and their families and for the Canadian economy, then we must take an objective and positive disposition to this bill. Why do I say that?
In order to get a good comprehension of what we are talking about, we have to think in terms of the dimensions of the discussion. It is good to think in terms of dimensions of discussions in dollars and cents.
Canada Post's annual report for 2006 says that despite a strong economy, the letter mail product was essentially flat in 2006. There was no growth as far as Canada Post is concerned, but it is concerned about the competition from the small businesses and the men and women that they employ.
Let us re-examine that context once again. That same report says that consolidated revenues from operations in Canada Post reached $7.3 billion for an increase of 4.6% over the previous year. This is an environment where the letter mail business is flat, so it has increased by 4.6% its revenues which total $7.3 billion according to its consolidated statement.
Is there another number that fits in with that growth? What does a 4.6% increase mean? Again according to the statements in the annual report, it means $320 million of increased revenue. There is $320 million of additional revenue over the previous year in order to carry out its mandate, in order to guarantee the jobs of the men and women in rural Canada and in urban Canada and to deliver the kinds of service that Canada Post is mandated to deliver.
And when it falls short of its mandate, the Government of Canada, as I read the Canada Post Corporation Act, has always stepped in to ensure that any shortfalls would be guaranteed by the Canadian taxpayer, but that is not the case now. We are not talking about that now. We are talking about an increase of $320 million that has brought to complete revenues of $7.3 billion.
I do not think we ought to focus too much on this. It is a fabulous amount of money. It does not equal anything I have ever dreamed of owning. However, $7.3 billion means that, according to Canada Post, it is now one of the biggest employers in the country. In fact, it is proud to say that it was named as one of the top 100 employers in Canada for 2007 in Maclean's magazine. Things would appear to be going not too badly.
What is the competition for a $7.3 billion company that employs 55,000 people?
We heard the parliamentary secretary say a moment ago that the competition is a group of companies that send letter mail, pick it up and send it abroad, outside of Canada. In other words, they are not interfering with the exclusive privilege of sending mail within the country. In other words, they are not interfering with the mandate of providing that network of communication and jobs around the country. They are not interfering with the mandate to hoist the Canadian flag in communities all around the country so that we can see that our federation works. Those companies and those men and women who have been earning their jobs and their money legitimately, according to the parliamentary secretary who was repeating what Canada Post in its best estimates found to be the case, are a $45 million to $55 million competition.
In committee I pressed some of the remailers. I said that surely it cannot be just $45 million to $55 million. They allowed that maybe they might inch up to $60 million, maybe even $70 million. In any case, according to a very quick calculation on a BlackBerry or any computer we would find that $60 million of gross revenue for these small companies, compared to the $7.3 billion, is about .8 of 1%. That is less than 1%. That is the threat. That is the Trojan Horse that people are now beginning to bring forward. That is why I said that we cannot be talking about what the bill is not going to do; we have to talk about what it is intended to do.
What it is intended to do is to save the jobs of those people who are working for those companies that in their total represent less than $60 million compared to the big giant of $7.3 billion. Seven billion dollars and three hundred million dollars is what Canada Post earns.
If we are trying to save the jobs of those men and women, if we think that their value, their dignity, their right to work is at least as good and legitimate as anybody who works for Canada Post, then we do not have any problem with this bill, because Canada Post does not have any problem with the bill.
In fact, Canada Post, in addition to indicating that it grew its income by $320 million, really did say that the net income for the fiscal period ending December 2006 was $119 million. On revenues of $7.3 billion, it netted roughly $120 million. That $120 million net is at least twice the gross value of all those small companies and their employees who will punch the clock or do what they can to go to work every day to raise their families in an environment that is productive, dignified and meritorious of a Canadian dream.
The bill should be doing that and that is what I thought the government wanted to bring across to everybody. That is why this bill is so brief. It just simply says to let these people work. Where are they working, according to the parliamentary secretary? They are not working all over Canada so they can diminish the mandate of Canada Post to deliver a network of communication for all Canadians and to bring them together and bind this country tighter as one unit. No.
According to the parliamentary secretary and to the best estimates of Canada Post, we are talking about people who are engaged in businesses where this opportunity is practicable. In other words, they cannot compete anywhere else. They can only compete in three areas.
It appears that those three areas might be the greater Toronto area, might be metropolitan Montreal and might be greater Vancouver. Those are not three insignificant markets. They are very large and important but they also have the infrastructure required in order to make some of these very small businesses function.
There is no competition anywhere else. There is no competition for rural mail service in small communities where Canada Post might be a significant if not the most significant employer. There is no competition for a standard bearer for our Canadian presence, the point of contact between citizens and government around the country.
For 20-plus years the business has developed. Obviously it has not been such an overwhelming success as to make great inroads into the revenue stream of Canada Post because the revenue stream totalled $7.3 billion last year in an environment where the letter mail business was flat and these companies were not able to generate much more than $50 million.
I look at this again and ask what we should do as responsible parliamentarians. If we are concerned about the jobs of the men and women who work for these small businesses that operate here in Canada. Members will notice that I did not say they had to necessarily be Canadian owned, but that they receive investment and they do employ Canadians. What happens to the jobs of the people who work for these companies? Will they be absorbed by Canada Post, a company that is trying desperately to be as productive, as efficient and as competitive as any other industrial giant? I do not know. How would it do that?
If this business that Canada Post has just realized exists is labour intensive, and it would be labour intensive in places like Toronto, Montreal and Vancouver and non-existent anywhere else, will Canada Post absorb those jobs and create new ones so that we now can say, as responsible legislators, that we are not taking away the opportunity to earn a livelihood and create a future for oneself and one's family, but that in fact we are transferring the possibility from these small entrepreneurs to a state related organization?
If we could do that, that would be fine but, in a competitive environment, Canada Post will not absorb those jobs. It will ask its union members, which is CUPW, to take on any additional work. Does anyone know why? It is because the work represented by those small companies and their dutiful men and women who work every day to earn money to carry on with their livelihood for their families amounts to less than 0.8 of 1% of Canada Post's gross revenues.
Does anyone think for a moment that Canada Post will absorb all of those jobs and create more new jobs for every one of those people so that it can spend more? It will not do that at all. CUPW members will be asked to take on additional work, but not for more money, presumably, because in an efficiency driven environment it could not do that, but to do it for the same money.
What would be accomplished by driving out of business these companies that provide jobs for people's next door neighbours? It will not hurt people who are not from Toronto, Montreal or British Columbia's lower mainland. It will not hurt the member from Thunder Bay and it probably will not even bother the members from Ottawa. It will have an impact on people from the greater Toronto area, the greater Montreal area and the greater Vancouver area, where people are working diligently to make Canada a success.
What will happen? Will those people now be transferred from a job in one company to a Canada Post position? The answer is no. It will not happen.
As members of the House of Commons, our first obligation is to ensure that no legislation goes through the House that damages the potential available to any Canadian and, concomitant with that, the obligation to nurture an environment that gives Canadians that same opportunity.
If that is what will happen, then this legislation is but a very small step in the direction of a positive initiative that should not be apologized for. That is bad English form. We should not add in a preposition and leave it dangling. We should say that it is something that allows a productive activity to flourish in a legitimate environment. That is what this bill would do.
Mr. Speaker, do not let any member in the House confuse the positive aspects, the intentions of this bill, which came out of a committee that considered, deliberated and debated motions and said that we needed to structure legislation that does something positive, such as save jobs, nurture job creators and ensure that the infrastructure that we already have in place and, with all due respect, that is represented by Canada Post, be maintained. The bill took what the committee said and fashioned it in very simple terms, very brief legislation, and said that this was what we had to do.
I urge everybody to support this legislation.
:
Mr. Speaker, I am pleased to speak to Bill , to amend the Canada Post Corporation Act.
I will summarize it briefly by reading it. It is not a very complicated bill. It is probably one of the shortest bills ever introduced in this House. It has just one clause, a proposed addition to the act that reads as follows:
The exclusive privilege referred to in subsection 14(1) does not apply to letters intended for delivery to an addressee outside Canada.
It is important to grasp the history behind this bill to understand why it is being introduced in the House today. The English and French versions of the Canada Post Corporation Act had a terminology problem. The French version applied this exclusive privilege to letters for delivery to an addressee outside Canada, whereas the English version did not.
Because of this dichotomy, which was in place for over 20 years, remailers infiltrated the mail market. They take mail intended for destinations abroad from companies, put it in a container and send it to addressees via other countries that offer lower rates than Canada Post.
I believe that all those watching the debate on television understand why an exclusive privilege was granted to Canada Post. Among other things, it permits all citizens to receive their mail at their residence, no matter where they live in the great and vast province of Quebec or in the great and vast country of Canada. That is why the House of Commons passed, at the time, the Canada Post Corporation Act: to grant this exclusive privilege so that everyone can receive their mail at home no matter where they live.
Obviously, things have changed since then. As I was explaining earlier, remailers, among others, referred to the English version. Since they were already working in this area, they used it to justify forwarding other types of mail that were not letters. These companies were already in business and they decided to do the same with mail in general and to cite the English version in order to do business.
Three years ago, the Canada Post Corporation finally decided to turn to the courts. These are probably the types of questions that we, the Bloc Québécois would have liked to have asked both the Canada Post representatives and its employees as well as the remailers and their employees, in order to discover why Canada Post went to court three years ago. The courts found in favour of Canada Post and were prepared to issue injunctions against companies that were remailing letters abroad.
The committee, in its great wisdom, wanted to be able to carry out an in-depth analysis before the citizens working for these companies lost their jobs.
I am disappointed with both the Conservative Party and the Liberal Party for tabling a bill before taking a hard look at it. The purpose of the unanimous report presented by the Standing Committee on Transportation, Infrastructure and Communities was simply to ask Canada Post to stop legal proceedings until the committee carried out a thorough analysis of the matter. That was the purpose.
That goal was finally attained, and remailers were not completely satisfied, but they were fairly satisfied. In the short term, it meant that they did not have to lay off employees until we could conduct a thorough analysis.
Then the House was prorogued. People who take an interest in politics followed these events. All the discussions began again in Parliament. Finally, we have a new session, which is what the Conservatives wanted. The government decided to introduce a new bill before the committee could even hold its first meeting. In fact, the organizational meeting took place this morning. When the government prorogues the House, the committees start from scratch again. It takes 14 days after the members are chosen, which is too long. In short, most committees have been sitting for only a few weeks.
The government therefore decided to introduce a bill simply to put an end to Canada Post's exclusive privilege. The government decided to submit the bill to the House of Commons and make the committee work so that we could vote on this. This is clearly unacceptable, because we would have liked to guide the government.
It is very hard to pass amendments when the bill is only three lines long. The government knew exactly what it was doing. The bill that was tabled is only three lines long, and we will not be able to add a paragraph and a half or two paragraphs. That is impossible. This means that, theoretically, we will have to vote for or against this bill without ever having made any real analysis.
In committee, we will make every effort and use every possible means to call a full slate of witnesses, provided that the Liberal Party and the Conservative Party do not work together and decide to limit debate to one day only. Together, they have a majority, and they could decide to do that. In fact, they could just sweep the whole thing under the rug, so that we could never get to the bottom of things, if they decided that the whole matter was settled.
That is why I am a bit disappointed at the speech given by my Liberal friend, who finally seems to have decided that Canada Post is not going to lose any money.
But the Bloc Québécois is concerned. We think that the exclusive privilege is a sign of equality among the citizens of Quebec and Canada, and everyone has the right to have mail delivered to their home. This is why Canada Post was created. I do not like to use this word, but in the old days, it was the Queen's mail. But today, I must say, mail delivery has gone out the window, and the Queen as well, or at least the Queen's mail. Forget home delivery. Those days are over and here is the proof.
The parliamentary secretary, a nice fellow, explained that no one would lose anything. Forget that. It has already started, and 30% of people who receive home delivery will lose this service for safety reasons explained by Canada Post and its president.
There are solutions: in the United States, smaller and better adapted vehicles deliver mail to the door, etc. We could have made such an investment, but no, it was decided that 30% of the population would lose their home delivery for various reasons: size of the route, the way employees work with their traditional vehicle, the fact that they must get out on the side of the road, little space, speed, etc.
In any case, I am not making any of this up. Call any Canada Post official and he or she will say the same thing: 30% of people will no longer have home delivery.
Indeed, they will have to get their mail from the big, green boxes. And, as the Liberal member was saying earlier, all new residential developments have those green boxes. These new subdivisions may all have those green boxes grouped together in one place, but this is not the best solution. If they had really wanted to, home delivery service still could have been provided to Canadians, as it was in the past.
This service is being further and further reduced. We are concerned. The parliamentary secretary can get all worked up and say that Canada Post will never be privatized, but as soon as tempting to privatize Canada Post. There will be fewer employees and staff, that is, just what is needed to be able to privatize the corporation.
This is the Bloc Québécois' concern. Indeed, we do not believe the Conservatives. They said there would not be any impact and that there would always be rural mail. The minister got all worked up saying that nothing would be changed. Yet, within two years' time, 30% of citizens in rural settings will no longer receive their mail. That is the reality hidden behind the posturing of the .
Why should we believe him now, when he says that Canada Post will never be privatized? We cannot believe him any more than the public can believe him. Go and talk to those people who stand to lose their mailboxes and will be forced to go to community mailboxes. Ask them if they believe the minister. No one believes him anymore. He works for us every day, ensuring that we are elected, and we have no problem with this. This allows us to be re-elected, time and time again.
However, in certain respects, this is in no way an intelligent objective. It was decided that a crown corporation would be created and given an exclusive privilege, in order to ensure that all citizens in a large country such as Quebec or Canada would receive their mail at home. It was a laudable objective.
They pretend to listen, but then they cut services and brook no discussion about it. That is what the Bloc Québécois disagrees with. I am not saying that things would turn out any differently otherwise. The problem is that they decided to introduce a bill that cannot be amended. We will have no choice but to vote for or against the bill. It is only three lines long, so it will be practically impossible to amend. We will have to vote against the bill or for it. The government cannot say that it did not realize this. It has law clerks and knows exactly what it is doing.
All it wanted to do was present us with a fait accompli and ask us if we were for it or against it. That is exactly what committee members did not want to happen. I am having a hard time understanding my committee colleagues who were there at the time. We all wanted Canada Post to drop its case so that no jobs would be lost. We were against losing jobs, but we wanted a thorough analysis. That was our goal.
Now we have a bill that says,“You have no choice. You can talk about it all you want, but in the end, the point is, are you for it or against it?” If the analysis had been done before, we could have come up with a better, smarter solution that would probably have enabled Canada Post to protect its exclusive privilege while letting remailers keep their jobs. It could have happened. Some of our Liberal colleagues were even ready to do that. We had discussions. But none of that will happen now because the government decided to do things its way. I am disappointed that the Liberals agreed to that. I hope that we can have a debate about this in committee.
Canada Post has very healthy sales, but revenues are down significantly. It is important to understand that the Canada Post Corporation pays taxes in the provinces where it does business. It is a crown corporation, but it has to pay taxes, which is good. It is a corporate taxpayer like any other business. You have seen and will understand that a portion of these revenues goes to taxes. Then, because it is a crown corporation, Canada Post must pay a dividend to the federal government. In 2007, that dividend totalled $48 million. That means that it must turn over its surplus to the Government of Canada. It was decided that things would work that way, and I am not opposed to that.
But if the decision is made to decrease sales and if ever the goal was for Canada Post to earn $49 million or $50 million less net profit, what would be the reaction of the government, which would still want its dividend at year-end? Is this discussed in this bill? It is impossible. This bill can no longer be amended. All the legislative drafters will say that you cannot add anything that changes the substance of the bill. We will therefore not be able to discuss that.
This is the sticking point for the Bloc Québécois. The government cannot threaten something that has been in existence for generations and is likely the oldest service provided by the federal government across Canada. The mail is likely the oldest service. The government is attacking it directly, gently, simply by letting companies do what they want, without letting us ask questions, hold a real public debate or invite all the stakeholders. The government has done this by being both judge and defendant and saying that it is not important to Canada Post. It has revenues of $7 billion or $8 billion, but in the end only $49 million is paid in dividends to the federal government.
Imagine the spending. That is $119 million in net revenues and $49 million in dividends paid to the government. If sales are cut by $150 or $200 million, net revenues and dividends will drop, and we will be forced to cut other services to maintain the dividends for the government, which needs this money to do other things, as it does with employment insurance. It is dipping into the EI fund. The EI fund is not an independent fund. Citizens who make their contributions to EI make them into a fund here, in Ottawa, that is not independent. It is part of the consolidated fund, and the government needs that money to pay down the debt and invest in military equipment or the war.
That is a choice the Conservatives make. They certainly do not invest in the environment. That much we know. But they will happily invest in the oil industries or in military equipment. It is a choice. The problem is that they have decided to do the same thing with the dividends paid by Canada Post, and want more money to invest in military equipment and in oil resources, but not in services for the public.
There is not one Conservative member who can guarantee me that today, because there will be no debate on the subject. The debate will be held on three lines of a bill that will ask whether we are for or against allowing remailers to send letters outside Canada. We cannot make even the slightest modification. There will be no debate, and there is nothing we can do about it.
It is yes or no.
Since the Liberals and the Conservatives have already shown their colours, it will be yes to the bill right from the start. That is what is disappointing. The real debate will never be held, not in committee or in the House of Commons because we do not hear witnesses here.
The Conservatives way of handling this matter here in the House of Commons with this bill is very disappointing. In the previous session, before the Conservative government prorogued the House, that was not what the Standing Committee on Transport, Infrastructure and Communities decided. There was a unanimous resolution in committee, which I will repeat so that everyone is clear, to the effect that Canada Post must not go any further and must end its dispute with the remailers so that no one would lose their job, until a full review of the situation had been done. This review was not done and will not be done.
The bill is so limited that all we can say is whether we are for or against having remailers distribute letters outside Canada. I maintain that this risks upsetting the balance of the postal service across Canada.
On that point, the Bloc Québécois will do everything in its power to shed light on this. We cannot allow the government, the Conservatives and the Liberals, to do this without putting up a fight to make people understand that this bill threatens public services. That is what we are going to do. You can count on the Bloc Québécois. Quebeckers who elected a Bloc majority in Quebec will be glad they have the Bloc Québécois to defend their points of view.
There is nothing rosy about this. Always saying yes to private companies, the way the Conservatives do, is very worrisome. We think it is also important to protect the service in all the regions of Canada. Quebec covers a lot of territory and the people in the rural areas are just as entitled as people in urban centres, to home delivery service. In the big cities, you get home delivery service and no one is jealous of that. You probably deserve it. You pay your taxes. Nonetheless, people in rural communities are also entitled to their service and mail delivery at home because they too pay their taxes. They are the equals of city dwellers.
As you can see, the Bloc Québécois will never tire of debating this injustice being perpetrated even as we speak. I repeat, Mr. Speaker, if you ask all those in charge of safety at Canada Post, they will tell you that, in rural areas, mail service will be reduced by 30% once the safety analyses have been completed. They are not proposing to change delivery vehicles to ones that are smaller and can drive on the shoulder of the road, as in the United States. No, not at all. They are not talking about that; it is too expensive. I understand that, because with this bill they will lose potential revenue or even lose money.
We must understand why Canada Post decided to take remailers to court. Is it because the problem is growing and their share of the market will double, triple or quadruple in 10 or 12 years? Will Canada Post be cannibalized by these companies? No one in government is asking this question. The matter has already been settled. The bill has already been tabled and it has been decreed that we have to deal with the remailers. We will never know.
Naturally, this is very worrisome for the rural postal service. The Bloc Québécois will always support the equity of all regions, whether urban or rural. We will never rise in this House to jeopardize the service provided to citizens, whether they live in rural areas—as I was saying earlier—or in urban areas. Quebeckers and Canadians work hard and are entitled to residential postal service, whether they live in rural or urban areas. The Bloc Québécois will always be there to defend them.
:
Mr. Speaker, I appreciate the opportunity to join in the debate today.
The NDP believes that prior to even getting to the point of whether we agree with the bill or not, there ought to be a follow through on the commitment to do a review of the entire mandate of Canada Post. Then we would have a better idea of how this fits into what we collectively expect from Canada Post going forward.
It is a shame that is not happening. I suppose it is possible there is a good reason why it is not happening. The government may not like the way it looks in the context of a mandate that has just been reviewed, but I will leave that where it is. We will continue to push for this mandate and we will continue to oppose the bill.
I cannot seem to find anything on what Canada Post has to say about Bill . I can only hope Canada Post is not being gagged. I hope very soon, either at the end of today or tomorrow at the latest, we will get some idea of what one of the largest crown corporations in our nation has to say about a bill, a bill that goes directly to the heart of its ability to raise revenue and meet the mandate given to it by Parliament.
Let us remember, as we go through this whole discussion, that Canada Post, in addition to the services outlined in the legislation, has also been mandated to raise revenue on a self-sufficient basis. In other words, Canada Post cannot come back to Parliament and ask for money. It has a good enough service and product that it should be able to raise enough money through revenue to pay for all the costs.
Let us remember that we have one of the lowest universal letter rates in all the industrialized world. Canada is the second largest country, land mass wise, in the world. That is a pretty good achievement. For all the kicks that everybody likes to take at Canada Post from time to time, for whatever reason, at the end of the day that is a pretty good accomplishment. Canada Post is raising revenue without running a deficit. It is not coming here and asking for money.
The absolute key to Canada Post being able to provide a service that is recognized around the world and serves the needs of Canadians at a cost that they can afford is the whole notion of the exclusive privilege. It either has an exclusive privilege or it does not. The government wants to have it both ways. It does, but maybe not everywhere: Conservative government, public service, money to be made.
At this point, the NDP and the Conservatives start walking down a different road. Our sense is the reason the government is doing this is part ideology. The Conservatives do not like public services. If there is a dime to be made, one of their buddies ought to make it.
The notion of what is best for the public interest does not appear on a balance sheet. It does appear in a crown corporation, but it does not in private enterprise and nobody suggests it should. The Conservatives want this business because there is money to be made. That is the only reason, and from all accounts, there will be more and more money to be made each year.
We have a situation where some private enterprises have started to do work that is exclusively the mandate of a crown corporation. Whatever happened to the law and order party in our country? Under other circumstances, if people broke the law, flagrantly no less, and went ahead and started conducting business that was the rightful business of somebody else, the Conservatives would be holding them to account. They would go after them because they broke the law according to the Conservatives. They would be considered a law-breaker of the whole nine yards.
What do we see in this case? The Conservatives are going to change the law because there is lots of money to be made so law-breakers are now complying with the law. That is a pretty good trick if someone can get them to do that.
Let us take a look at some of the meat in the legislation. I agree with my Bloc colleague that one cannot believe for a minute that just because it is a small bill, and it really is, it somehow will not have a major impact. This is a smooth process. They are not allowed to do something by law. They go ahead and start to do it. The people who have the exclusive right to do what they are doing call them on it and they keep doing it.
From what I understand, Canada Post spent a few years working with the Universal Postal Union trying to come up with a way to square the circle in terms of what that organization represented and the law, which gives the exclusive right and privilege to Canada Post. It did not work.
Therefore, Canada Post said that it would go to court to make it very clear that the work done by the private companies encroached on business that was the lawful mandate of Canada Post. Canada Post won. These corporations, I guess because they care so much about public service and the delivery of mail, appealed it. They lost again.
It is interesting what the judges said in this case. Justice MacFarland, who wrote on behalf of a three judge panel that ruled unanimously, said:
The purpose of the statutory privilege can only be to enable CP to fulfill its statutory mandate or realize its objects. It is meant to be self-sustaining financially while at the same time providing similar standards of service throughout our vast country. Profits are realized in densely populated areas which subsidize the services provided in the more sparsely populated areas.
This is not a new challenge that we face as a country. Because of our values, we believe Canadians, no matter where they live in the country, should be able to find, with reasonable closeness, a reasonable facsimile to the services they would enjoy anywhere else in Canada.
Do we achieve that wholly? No, we do not. We can ask anybody. Ask my friend from Sault Ste. Marie whether the health services are the same in Sault Ste. Marie as they are in Toronto. Notwithstanding the difficulties in Toronto, they are that much greater in Sault Ste. Marie. Why? Because it has a smaller population and it is spread out so far.
I have not even begun to talk about the territories and the extremities of the country. It is a massive country. We believe that things like health care, transportation services, environmental protection and other government services should, as much as possible, be the same, or at least as close as one can reasonably get, never backing away from pushing to get there.
Quite frankly, we do not have to go all that far even in my own province. There are a lot of rural areas just outside Hamilton. If we based our profit margin, as a postal service, on the amount of business that came out those small areas, they would not get any. They would be an afterthought, but that is not the case right now.
For the same price, we can mail a letter or a package from anywhere in Canada to anywhere in Canada at a reasonable rate. Why? Because the exclusive privilege allows the post office to take profit from parts of its service, which allows it to offset the cost to provide, as close as it can, the same service in rural areas as we get in downtown Toronto. Again, in the second largest country in the world, that is not an easy feat.
What is proposed in the legislation will water down the ability of Canada Post to do that. Some might say that it is not doing the work at all right now. As I understand it, that is not factually correct. Some of the work is being done by Canada Post. Some of it is being done by people who should not be doing it. It is unlawful.
We are running a surplus right now. Overall, not in manufacturing but in many other areas of the economy, things are not going too badly. Profits are being made.
But what about tomorrow? What about next year? What about in five years, in ten years? Once we begin down the slippery slope of eating away at exclusive privilege we undermine the ability of Canada Post to provide the world class service that it does.
It is that simple. That is why we ought to be reviewing the mandate. If we do not want it to do that, then let us stop kidding ourselves and build a whole different kind of post office.
This is not really about whether we believe in privatized services, whether we believe in the private sector or the public sector and which one should be bigger, more important, first dibs on it. Really that is not the issue. It is a side issue. Really what is in front of us is the issue of how we want to handle postal services in Canada. If we want to continue them along the same vein that we have started, then we need to make sure Canada Post has the means to do it. It is that simple.
I certainly do not know of any commercial entity that wants to take over rural postal services only, or other aspects of delivering anything in Canada that is difficult, not to mention our weather. No. There is big money in it and that is why big money was prepared to hire high-priced lawyers to go to court to try to get it ripped open. When that did not work, they looked up at the sky, counted all their lucky stars and said, “We have a Conservative government in power. Let's just get the law changed”, and here we are with Bill .
It takes just a handful of lines:
1. Section 15 of the Canada Post Corporation Act is amended by adding the following after subsection (2):
(3) The exclusive privilege referred to in subsection 14(1) does not apply to letters intended for delivery to an addressee outside Canada.
It might as well say that where Canada Post has a chance to make a decent buck, we are going to privatize it, because that is what is going on.
I know the Conservatives are going to jump up and flail their arms and say, “This is not privatization. No, no. This is its sibling deregulation”. It is the same thing.
Make no mistake, if this bill passes today and we keep a like-minded government in power--and I cannot say anything about the official opposition; I have heard two speakers and they both took each side of the issue, which is pretty traditional so far, so it is hard to say whether this could only happen with the Conservatives. The Liberals are close enough that they may get what they want from either one.
The fact is if they win this, why would they not be back for more? Why not sit back in the boardroom and say, “Okay. Here is how this works. Let's find out other profitable areas of Canada Post and start doing it. When Canada Post gets upset, we will not even have to take it to court this time. We'll just go straight to the government and the government will stand up and say, 'Why are you doing this to these poor small businesses?'”
By the way, a lot of these poor small businesses have a huge global reach. This is big money. It reminds me a bit of WSIB, workers compensation in Ontario, where the private insurance companies are still standing outside the borders of the province drooling at the prospect of getting their mitts on all that money.
If this works, why not identify something else, go through the whole process again and eventually water it down to the point where we are in this place one day where there is an attack on the fact that Canada Post is running a deficit. Then they will go looking for scapegoats. And then what? My good friend from asked, “Then what?” That is exactly the right question. If Canada Post starts running a deficit, either this place starts to give it money that we have not had to do before because that profit is now not in the pockets of Canadians through the public service, it is in private pockets.
I hear one of the members heckling and asking “Is that bad?” I would say it is bad when either the cost of stamps and postal services goes up, taxes are increased to provide the subsidy or cut the service. Those are the options. I would say to you, Mr. Speaker, with regard to what the hon. member said, that yes, it is bad.
Maybe if I were lying on a nice deck chair on a great big yacht somewhere being taken care of by those who got all that money, I might feel differently. But as somebody who cares about postal service in Canada and is here to fight for the rights of ordinary Canadians, this is the structure that works.
The government did not even have the guts to say that it was going to change the mandate. No, it takes away the financial means to achieve the mandate. It is deceitful in some ways, if that term is allowed to stand, and it seems that it might be.
There is a sham being perpetrated here. We hear the argument that we are picking on people and why would we do this when it is already being done and all this stuff that suggests it is not a big deal and not to get all upset, that this is just the Bloc and the NDP fighting for those working people again or public services. At least some of the Liberals are saying that. I am waiting to get clarification of exactly where they are, so I will not comment. It does not really matter anyway, because they do not vote. They are just a debating society.
I want to read something in support of this notion about the slippery slope. Either we leave the exclusive privilege in place in its entirety or we say, no, revamp the mandate and build something completely different. It is one or the other. I agree with my Bloc colleague when he said that this is a vote up or down; there is no mitigating, no amendments, we either believe in this or we do not.
This is what was said in a report 11 years ago, the last time there was a Canada Post mandate review: “Removal of the exclusive privilege would be tantamount, in effect, to tossing Canada's postal system up into the air, allowing it to smash into a random assortment of pieces, and hoping that those pieces would somehow rearrange themselves into a coherent whole that was better or at least as good as the current system”.
At that time Canada Post did not seem to have as much difficulty finding its voice and it said that for as long as it is the public policy of Canada to provide universal letter service at uniform rates, it will be necessary to maintain the limited exclusive privilege for letters.
That is what this is about. This is about legitimizing and legalizing something that is currently outside the law. It is no different from Microsoft, or Disney, or any other big player. Canada Post is protecting its revenue stream, its market.
Why on earth would we tinker with a system that for the most part serves Canadians well and does not cost Canadian taxpayers anything beyond the money it costs them to buy the service at the postal station? Why would we mess with that? Why would we tinker with it? There is only one reason and this is my opinion. I am saying this in here, and this is pure speculation, but it is my right to say it and I am going to. It looks an awful lot to me like these private entities could not win in the courts, so they did the lobbying routine, lobbied the government and now the government is prepared to do their bidding to legalize tomorrow what is today illegal.
I will be interested to hear better arguments, particularly from my friend over in the corner who has his laptop and I am sure that all the information is being fed from central command about what his questions to me are going to be and how he is going to attack those wild-eyed New Democrats again. I await that moment, but what I await more than anything is the remote possibility that they might come up with an argument that actually holds.
Do not give us this stuff that we do not care about those private sector jobs. Of course we do.
An hon. member: You don't.
Mr. David Christopherson: Of course we do.
An hon. member: You don't.
An hon. member: There is an echo in here.
Mr. David Christopherson: It is more like a yo-yo, the voices going back and forth, Mr. Speaker.
At the end of the day, that is what this is about. If that were the case, then I certainly would hear the Conservative government taking a very different approach on law and order.
Mr. Speaker, you are signalling time, so I will end it there.