the cost of sending letters will also rise
Trucks, not mailbags will be the new look
Canada Post has decided to end mail delivery to Canadian homes.
Instead Canadians will have to pick up their mail at sidewalk "community" postal boxes. It will be brought in gradually over the next five years.
The price of sending a letter will increase from the current 63 cents to one dollar per letter next year - and who knows how much higher it will go in future years.
Expect more new "postal counters" in corner stores and supermarkets to replace existing post offices - a real Christmas gift for the corner stores and businesses.
About 6,000 to 8,000 postal employees are expected to lose their jobs.
Canada Post says it’s in debt over its head. The company lost $ 109 million this past summer. The real reason for the growing Canada Post deficit is not so much that mailings are off, as the fact Canada Post is $ 5 billion in the hole on its employee pension fund.
The end of mail home delivery will make it a little more difficult for people in wheelchairs and those with limited mobility. Then again, they can always ask a neighbor, a relative, or friend to pick up the mail for them.
The cost of sending letters overseas will increase as well.
Canada Post says the changes are needed so it does not have to ask Prime Minister Stephen Harper to use federal taxes to pay for the increased cost of delivering the mail to homes.
The mail delivery announcement was to have come Monday. The news release was dated for Monday, but the Harper government waited until Parliament had closed on Wednesday so that it would not be blasted by the Liberal and New Democratic Party Opposition in the House of Commons.
The government hopes that public anger will have blown over by the time the session resumes on Jan. 27.
Canada Post is responsible for its own accounts and isn’t about to nail Harper for its losses especially since he’s in debt over his head for $ 600 billion – the highest debt in Canadian history -- and faces huge costs for his F -35 fighter aircraft and a new fleet of military ships in the coming years .
Canada Post did not mention in its news release this week that while losing money delivering letters, it is making a fortune on parcel delivery across Canada. Half of all online purchases made in Canada are delivered by Canada Post. That figure is expected to rise in coming years.
The Post Office purchase of the "Purolator" courier service has made huge profits for the Post Office, which also makes a lot of money delivering business flyers and handling commercial mailings.
In Europe and other countries, post offices make money offering insurance, loans, mortgages, and a range of other banking services.
That would never happen here. Banks would never let Harper allow Canada Post to provide banking services.
Opposition parties say the announcement this week is the first major step towards the privatization of the Post Office that Harper has in mind.
The danger is that offering less service while raising rates will encourage Canadians turn even more to telephones and computers moving Canada Post further in debt.