Moya Greene, as then CEO of Canada Post, made a startling financial disclosure on what some of the billions of dollars Canada Post was requesting and collecting was for – and it was not just for modernization.
In an April 27th, 2010 representation on behalf of Canada Post to the Standing Senate Committee on National Finance, she disclosed that some of the monies was for the pension deficit, management buyouts, and assembling a new corporate credit structure. She also projected the total amount of monies needed would be higher – up from the original 1.7 billion estimate, which was later changed to 2.7 billion and now suggests around 4 billion.
Ms. Greene state before the committee, “I am looking at us spending $2 billion to $2.5 billion to modernize the facility and to help our people adapt to change, and I am looking at us probably having to commit another $1 billion to the pension. Therefore, I am looking at us managing close to between $3.5 billion and $4 billion worth of liability.”(1)
When asked more closely, she was asked if some of the money was for management buyouts. She concurred but did not have the exact figures available.
She also felt confused that Canada Post has not historically carried a level of debt and believed that this should change, “There is a permanent level of debt that a company this size should be carrying, and it is not $300 million. It should be at least $1 billion dollars.”(2)
Since this conversation Canada Post has completed the first round of issuing bonds for 1 billion dollars and has established a $4oo-million dollar credit facility with the Toronto Dominion Bank and the Royal Bank of Canada.(3)