October 23, 2007
(Letter sent to the editor of the National Post)
It seems Mr. Corcoran conveniently omitted our explanation for the proposed rate increase for mailing 30-gram letters to the United States (Flaherty should tackle his own price gougers).
Canada Post currently charges CDN $0.93 (not US as indicated by Mr. Corcoran) to send 30-gram letters to the US. Canada Post has proposed to increase that rate by 3 cents next January. The rate was set taking into account various inflationary factors, including the cost of fuel and transportation.
Another inflationary factor is terminal dues, a pricing mechanism that allows postal administrations receiving mail to collect for the cost of delivery from postal administrations sending the mail. Terminal dues charged by the US are expected to increase by a minimum of 5 per cent in 2007.
The price Canada Post charges to send mail to the United States is based on a service provided in Canada in Canadian dollars. It has nothing to with the parity of the Canadian and US dollars.
Manager, National Media Relations