Prince Edward Island Senator Catherine Callbeck is expressing concern about the future of rural mail delivery as the result of planned changes in the federal budget bill.
Callbeck spoke during a recent meeting of the Senate National Finance Committee. The committee is studying the federal budget bill which, among other things, will allow private letter exporters to collect letters in Canada that are bound for outside the country.
Callbeck said that Canada Post stands to lose millions of dollars under this change.
Canada Post currently has sole responsibility for picking up and delivering this mail, and uses the profits to help cover the costs of unprofitable services, like rural mail delivery. As it loses this revenue to private companies, there is a concern that Canada Post will have to cut costs in areas like rural delivery.
"The question is, where will they get those dollars?" said Callbeck.
Canada Post currently has sole responsibility for picking up and delivering this mail, and uses the profits to help cover the costs of unprofitable services, like rural mail delivery. As it loses this revenue to private companies, there is a concern that Canada Post will have to cut costs in areas like rural delivery.
"The question is, where will they get those dollars?" said Callbeck.
"Here Canada Post will be losing some revenue, and I am concerned what effect the loss of that revenue will have on services, especially in rural Canada."
While Transport Canada officials noted that they do not expect to see any impact on rural service, Callbeck will continue to press for assurances that rural residents retain quality mail service.
While Transport Canada officials noted that they do not expect to see any impact on rural service, Callbeck will continue to press for assurances that rural residents retain quality mail service.
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