On September 25, Joel Lightbound, Minister of Government Reform, announced a modernization plan for Canada Post, which aims to stabilize and ensure the survival of the company, which is currently struggling financially with a projected deficit of $1.5 billion by 2025.
One of the main points is to abolish home delivery of mail and allow people to receive it at community mailboxes. According to the government, about three-quarters of the country’s population already uses community mailboxes, and switching the remaining 4 million households to community mailboxes will save $400 million annually. The transition is expected to take about nine years, but most of it is expected to be completed in the first four years. Elderly and disabled people will be able to choose home delivery once a week or other means.
Additionally, given the current decline in mail volume, the plan will allow non-urgent mail to be shipped by ground rather than air, saving $20 million annually. However, delivery times for standard mail, currently two to four days, will be reduced to three to seven business days.
The ban on post office closures in rural areas will also be lifted. This ban, which applies to 4,000 post offices, has not been revised for nearly 30 years, and many areas that were once rural are now suburban or urban. However, post offices will remain open in rural, remote, and indigenous communities where they are needed.
“For generations, Canada Post has connected communities and provided a vital lifeline. Today, people still rely on Canada Post,” Minister Lightbound said, adding that bold action was needed to ensure the service continued.