December 2, 1999
(Executive Council)

Intergovernmental Affairs Minister Walter Noel is concerned about Canada Post Corporation's recent increase in parcel post rates in the country.

"It is unacceptable for Canada Post Corporation, the mandate of which is to provide `universal' and `affordable' services, to implement exorbitant increases in isolated northern centres where the cost of living is most demanding," the minister stated. Canada Post has recently announced rate increases for parcel postage across the country, ranging from a five per cent increase in urban centers to 27 per cent increases in northern communities. This policy has met with widespread opposition from Aboriginal and northern communities which feel that they have been unfairly targeted in the corporation's new pricing scheme.

"In Newfoundland and Labrador, this new policy has impacted the residents of coastal Labrador the hardest. The cost of using the parcel post services has become unaffordable and many residents are unable to use the services at all during the busy Christmas season," said Minister Noel.

The Government of Newfoundland and Labrador has been quick to condemn this discriminatory policy. On November 22, 1999, Minister Noel wrote to Alfonso Gagliano, the federal minister responsible for Canada Post Corporation, requesting a meeting to discuss this matter. Minister Noel also asked for his personal intervention on this issue. On December 1, 1999, the House of Assembly voted unanimously to adopt a resolution tabled by Torngat Mountains MHA Wally Andersen condemning the new pricing scheme and calling upon Canada Post to reverse the increases. Minister Noel has now forwarded a copy of the resolution to Minister Gagliano and reiterated his request for action on this issue as soon as possible.

"Canada Post Corporation recorded a profit of more than $50 million last year," stated Minister Noel. "Therefore, implementing such a sudden, large rate increase lacks any justification."

"The new rates are both unjustified and unfair. Canada Post Corporation has abandoned its original mandate to provide universal services. It should not be allowed to make even larger profits from some of the most isolated communities in Canada. I therefore call upon the Government of Canada to intervene in this matter and force Canada Post to return to a rate structure based on the principles of affordability, equality and fairness," the minister stated.

Media contact: Lynn Barter (709) 729-0084.

1999 12 02                                 4:10 p.m.