Canada Post proposes rate hike
30.06.2008 14:00
Shopping
- Source: cbc.ca
Canada Post wants Ottawa to let it raise the price of sending a first-class domestic letter to 58 cents by 2011. If approved, the cost of mailing a letter in Canada would rise from 52 to 54 cents in January 2009, with a two-cent rise in each of the following two years. The Crown corporation says the current rate doesn't reflect the cost of operating the postal service, in particular the rising costs for labour, fuel and transportation. "Soaring fuel prices coupled with increased labour and delivery costs mean our margins are razor-thin, and very close to being negative," Canada Post president Moya Greene said in a release. "Canada Post has an obligation to continue to serve more than 14 million addresses while being financially self-sustaining. This company has not been a burden on taxpayers for 13 years. We want to ensure this does not change." Regulations limit Canada Post to a price-cap formula that keeps increases to two-thirds the rate of inflation as measured by the Consumer Price Index. The CPI has increased 14.5 per cent since 2002, while the price of a basic stamp has gone up only 8.3 per cent or four cents. Canada Post has also requested a two-cent increase to 98 cents for all letters, cards and postcards up to 30 grams destined for the U.S., and a five-cent increase to $1.65 for international mail. Canadians have 60 days to submit their opinions about the proposed increase to the federal government, after which it will make a decision. Canada Post has the country's largest transportation fleet. More than 12,000 vehicles are used to transport and deliver the mail daily, travelling close to 170 million kilometres a year. Total annual transportation costs for the company are estimated at half a billion dollars, according to the corporation. Consumer HeadlinesOil prices shoot to new highOil prices have surged above $143 US a barrel for the first time ever, driven higher by political tensions in the Middle East and the weakening U.S. dollar.N.L. booster seat law begins TuesdayA new booster seat law comes into effect Tuesday in Newfoundland and Labrador, requiring children under eight and those under 37 kilograms to be secured in the seats in most vehicles.Day off, eh?: Holiday Tuesday raises Monday confusionCanada Day is causing some confusion in New Brunswick with employees and employers, with many wondering which day constitutes their paid holiday.NYC trans fat ban to take effect this weekStarting this week, a New York City ban on trans fats will extend to almost all prepared food in restaurants, bakeries, cafeterias, salad bars and food carts.Developer looks to turn historic building into affordable housingFredericton's Non-profit Housing Corp. is trying to acquire a 19th-century home in the city's downtown to use as affordable housing. Consumer Life FeaturesYour InterviewCarbon taxStephane Dion's plan explainedENERGYGasolinePeculiar pump price protestsTRAVELNavigating NicaraguaOnce-troubled nation becoming tourist destinationBLOGFood BytesSign of summerBLOGComm-OdditiesLife fetches $384,000 on eBayPeople who read this also read …
| 
Add comment