January 21, 2010

(Letter sent to the editor of the Calgary Herald)

Dear Editor:

I would like to respond to the January 20th letter from Richard Truscotte, Alberta director of the Canadian Federation of Independent Business.

The recent rate increase announced by Canada Post is not "the largest postage price hike in the Crown corporation's 134 year history", as stated by Mr. Truscotte. Postage rates went up by 13-cents in 1982, as approved by the government prior to incorporation.

As for the impact on small businesses, Canada Post is offering a one-time rebate to offset the initial impact of the three-cent increase this year to small business customers. Small businesses also have the chance to mitigate the effect of any stamp increase by purchasing Permanent stamps.

The new pricing positions Canada Post to address three key challenges; the growing number of addresses we serve every day; considerable declines in lettermail volumes; and the pressing need for investments in infrastructure that are critical to our continued ability to serve all Canadians.

In fact, had we kept pace with the rate of inflation since 1982, the price of a stamp in Canada would be 66-cents today.

Even after the pricing strategy is fully implemented over the next five years, Canadians will still enjoy one of the lowest domestic basic lettermail rates among developed nations.

Sincerely,

John Caines
National Media Relations
Canada Post
613-734-7675
john.caines@canadapost.ca