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Newsroom - Letters to the Editor

October 22, 2003

(Letter to the Ottawa Citizen)

Dear Editor:

I would like to respond to the October 21st letter from Ann Frederking of Pembroke, "We get self-promotion, not service, from higher Canada Post rates."

There should be no surprise that there will be a one-cent increase in domestic postage effective January 12, 2004. We announced our first increase in two years on July 27th. Even at the new rate of 49 cents, Canadians will still enjoy one of the lowest domestic basic letter rates among industrialized nations.

Under the price-cap formula, approved by the federal government in 1998, basic letter rate increases, when warranted, will not exceed two-thirds the rate of inflation as measured by the Consumer Price Index. Increases will be implemented no more than once a year, in January, and announced six months in advance.

Canada Post operates in a very competitive environment and advertising campaigns are necessary to promote our products and services. Competitive services contribute significantly to Canada Post's revenues and make our universal postal services affordable. If Canada Post could not provide competitive services, stamp prices would have to rise significantly, and the government spend hundreds of millions of tax dollars a year to support the corporation, or abandon the universal postal system.

Sincerely,

John Caines
Manager, Media Relations
Ottawa
(613) 734-7675