The 2009 Annual Report – Some Answers

The 2009 Canada Post Annual Report contains many details that answer a few key-questions as outlined in the previous post, “Important Questions…”.

The 2009 version is much improved over the 2007 one, which the questions were based on. Much more will be pulled out of this document, but in reference to some of the important questions:

• Food Mail program: (Pg. 28) A large portion of this was covered by the Government of Canada. Canada Post attributes to absorb 11 million in ‘foregone’ revenue on the difference between what the Government gave and their actual costs based on commercial rates.

• Government Mail and Materials for the blind: (Pg. 28) 17 million in ‘foregone’ revenue.

• Library Book Rate: (Pg. 28) 6 million in ‘foregone’ revenue.

The total lost ‘foregone’ revenue to Canada Post for these three programs is an annual 34 million dollars.

This total does not include free mail to the military in Afghanistan.

Nor does it include a breakdown of how much the Universal Service Obligation costs. What is meant here by USO? All points serviced that Canada Post loses money on, which is typically rural and non-urban communities. Losses that are required to be recouped through the profitable urban operations.

These two entities, Urban and Non-Urban, should be distinct in all Canada Post financial reports.

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