Pubdate: Tue, 13 Sep 2016
Source: Toronto Star (CN ON)
Copyright: 2016 The Toronto Star
Contact:  http://www.thestar.com/
Details: http://www.mapinc.org/media/456
Author: Vanessa Lu
Page: A1

LETTERS, PARCELS AND DIME BAGS? UNION CALLS POSTAL PLAN HALF-BAKED

Canada Post report says agency obvious choice to ship your weed

Could legalizing pot save Canada Post?

Canadians looking to use recreational marijuana could help boost the
post office's revenues and be part of the answer to its financial
woes, a new report suggests.

"Through its currently unparalleled national delivery network, Canada
Post stands to capture a large part of the recreational shipment
volume," says Canada Post in the Digital Age, written by the task
force for the Canada Post Corporation review, released Monday.

The 94-page report noted that Canada Post is already the sole agent
for delivering medical marijuana across the country, and its more
6,200 post offices and retail outlets could potentially serve as
storefronts for weed sales.

An estimated 88 per cent of consumers live within 5 kilometres of a
postal outlet.

"We don't know what the details are yet, but we put it on the table,"
said task force chairwoman Francoise Bertrand, estimating that
marijuana sales could generate $10 million to $20 million a year in
delivery fees. "There's not a huge amount of money." Details on
whether legal marijuana sales will be regulated federally or
provincially are not yet known, but the report said Canada Post is
well positioned to benefit from increased distribution revenues, as it
now delivers alcohol for the LCBO, under its new online shopping
program introduced in July.

A separate marijuana task force, which is examining how pot could be
legalized, has highlighted the mail service, noting it provides
"reliable, low-cost delivery to all parts of the country in a discrete
manner that does not encourage increased usage." But the union
representing postal workers said delivering pot or selling pot alone
is not the answer.

"The idea that selling pot is going to save Canada Post is patently
ridiculous," said Mike Palecek, national president of the Canadian
Union of Postal Workers.

"They need something that will generate significant revenues and
services that people need," he said. "The report is rather
disappointing as it concludes postal banking is not the best way to
go," which the union has been lobbying for.

The report said Canada Post's current business model, which reflects
the 20th century, needs to be realigned with the rapidly changing
technological realities and the changing postal usage of Canadians.

Even with drastic changes, the report added: "Canada Post will not be
positioned to operate in the future on a financially self-sustaining
basis over the long term," pointing to the steep drop in letter mail
and flyers.

Even though demand for parcel delivery has soared, it can't make up
the shortfall. And the post office faces huge pension
liabilities.

The report said the Crown corporation could take different actions to
cut costs and raise revenues, including hiking prices, considering
alternate day delivery or levying annual fees to maintain door-to-door
delivery.

Other ideas include turning postal outlets into community hubs,
possibly handling government services or offering Internet access in
rural and remote communities. It also suggested lifting a ban on
closing or franchising rural outlets. Or it could sell advertising on
its delivery trucks and in its postal outlets.

In 2014, Canada Post began switching customers to community mailboxes,
though it received some complaints, especially from groups
representing seniors and disabled Canadians.

But last October, just as the federal Liberals, who campaigned to
restore door-to-door delivery, were set to take power in Ottawa,
Canada Post suspended conversions. In all, 830,000 households out of
five million were switched over.

The report estimated that to restore those customers back to
door-to-door delivery would cost $1.2 billion.

The task force was appointed by Public Services Minister Judy Foote to
develop an initial discussion paper that would then be submitted to a
House of Commons committee for the second phase of the review, which
will include public consultations that begin later this month.

In a statement, Canada Post said it welcomes the report, adding that
it has reaffirmed the challenges facing the postal system and the path
the corporation was taking to secure its future for Canadians.
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MAP posted-by: Matt