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Vol. 141, No. 26 — June 30, 2007 Regulations Amending the International Letter-post Items RegulationsStatutory authority Canada Post Corporation Act Sponsoring agency Canada Post Corporation REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) Description These proposed amendments to the Canada Post Corporation (Canada Post) Regulations, effective January 14, 2008, will increase the rates of postage for letter-post items destined to the United States and to other international destinations. The proposed rate increases are as follows:
These proposed increases represent a weighted average increase of 3.5%. Canada Post is facing inflationary pressure from a number of sources. The proposed price adjustments take into consideration increased operating costs, which are expected to be in excess of the Consumer Price Index inflation forecast. One such source of cost is terminal dues, which is a pricing mechanism that allows the postal administration receiving the mail for delivery to collect for the cost of delivery from the postal administration sending the mail (in this case, Canada Post). It is expected that terminal dues to the United States will be increasing by 5% in 2007, while terminal dues to other industrialized countries will increase by 2.5%. Additionally, many transportation companies have implemented significant fuel price surcharges based upon price fluctuations. As Canada Post cannot implement a fuel surcharge for regulated letter-post products, it remains exposed to fluctuations in the price of fuel and must recover expected increased costs. Even with the proposed price increases, Canada Post's U.S. and International basic letter-post rates will continue to be among the lowest rates of major industrialized nations' comparative rates for mail sent to Canada. Alternatives The Canada Post Corporation Act requires the Corporation to establish rates of postage that are fair, reasonable and sufficient to defray the costs incurred in the conduct of its operations. While Canada Post takes measures to contain costs to the extent possible, letter mail rate increases remain necessary to offset growing operational costs. Benefits and costs The new rates will directly contribute to Canada Post's financial integrity and, consequently, its ability to make future investments to maintain an accessible, affordable and efficient service. Anticipated impact It is anticipated that the amendments will not have a serious impact on postal users or market share. Generally, consumers send only a very small number of U.S. and international mail items each year compared to domestic letter mail. Consultation As required by the Canada Post Corporation Act, these amendments are being published in the Canada Gazette, Part I, thereby initiating a formal 60-day period in which interested persons can make representations to the Minister of Transport, House of Commons, Ottawa, Ontario K1A 0A6. All such representations should cite the Canada Gazette, Part I, and the date of publication of this notice. Compliance and enforcement These Regulations are enforced by Canada Post under the Canada Post Corporation Act. No increase in the cost of enforcement is expected as a result of the proposed changes.
Mrs. Manon Tardif
Notice is hereby given, pursuant to subsection 20(1) of the Canada Post Corporation Act, that the Canada Post Corporation, pursuant to subsection 19(1) (see footnote a) of that Act, proposes to make the annexed Regulations Amending the International Letter-post Items Regulations. Interested persons may make representations with respect to the proposed Regulations within 60 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to the Minister of Transport, House of Commons, Ottawa, Ontario K1A 0A6. CANADA POST CORPORATION
REGULATIONS AMENDING THE INTERNATIONAL AMENDMENT 1. The portion of section 1 of Schedule IV to the International Letter-post Items Regulations (see footnote 1) in column II is replaced by the following:
COMING INTO FORCE 2. These Regulations come into force on January 14, 2008. [26-1-o] S.C. 1992, c. 1, s. 34 SOR/83-807 |
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